Legal Issues

Early Music Streaming Service Grooveshark Shuts Down to Settle Infringement

1 min read
This story originally appeared on Reuters

Online music streaming service Grooveshark shut down its operations as part of its settlement agreement with major record companies, according to a message posted on the website, putting an end to a four-year legal battle.

Grooveshark will wipe clean all of the record companies' copyrighted works and hand over ownership of its website, mobile apps and intellectual property, including patents and copyrights, the company said.

"Despite best of intentions, we made very serious mistakes. We failed to secure licenses from rights holders for the vast amount of music on the service," Grooveshark said.

Grooveshark and its parent Escape Media Group were not immediately reachable for comment.

A U.S. judge ruled last week that Gainesville, Florida-based Grooveshark's copyright violations on nearly 5,000 songs were "willful" and made "in bad faith."

Nine record companies including Arista Music, Sony Music Entertainment, UMG Recordings, and Warner Bros Records, sued Escape Media Group for infringement in 2011.

In court papers, they called Grooveshark a "linear descendant" of Grokster, LimeWire and Napster, all of which had been shut down because of copyright infringement. 

(Reporting by Ismail Shakil in Bengaluru; Editing by Gopakumar Warrier)

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

California Rules Hourly Employees Who Perform Tasks 'Off the Clock' Must Be Compensated