The music streaming service agrees to settle with the major labels and is "wiping its servers of all the record companies’ music, and surrendering ownership of its website, mobile apps and intellectual property."
The Gainesville, Fla.-based service, which the labels took to court for lacking licenses, was dealt its most recent legal blow in early April when EMI, now owned by Universal, was granted a motion for summary judgment. At that point, total damages were estimated at $420 million based on the court's finding that 2,807 EMI-copyrighted sound recordings existed on Grooveshark's servers.
As news arrives today, Grooveshark was facing up to $736 million in statutory damages at a trial that was about to begin. The maximum statutory penalty per infringement is $150,000 for willful violations.
Said the Grooveshark founders, via the RIAA statement: “Despite the best of intentions, we made very serious mistakes. We failed to secure licenses from rights holders for the vast amount of music on our service. That was wrong. We apologize.”
I used the site occasionally when YouTube, SoundCloud, etc would always take down new songs, or labels wouldn't allow some songs to be uploaded on them. + you could scrobble on last.fm from it, which was a plus.
It's true that they had some music that wasn't very popular or wasn't in English that I would listen to on there, because the songs weren't available on Spotify and Youtube quality sucks. In a way, this is bad, but I can probably just find those tracks elsewhere.