Music streaming service Grooveshark is now being charged by all 4 main record labels after EMI joined Universal, Sony and Warner in taking action from the company for failing royalties.
EMI was the just company with whom Grooveshark really got a licensing deal, however has now filed a suit in the US towards parent company Escape Media Group, stating that it has didn’t make a single royalty payment.
The website doesn’t specify the problems that EMI is searching for, but based on reports it may be around $150,000 . Grooveshark issued an argument saying that the matter would be a “contract dispute” that might be fixed.
Grooveshark’s 35 million members have the ability to upload their own tracks to the streaming service’s music collection. This lawfully questionable practice implies that Grooveshark often has to deal with take-down orders (under the Digital Millenium Copyright Act) to get rid of infringing contents within a specific time period, nevertheless the company is protected against being sued provided it complies with your order. This is the exact same defence that YouTube uses for video uploads.
Nevertheless, if a batch of internal emails among Grooveshark employees grow to be authentic, it will probably need to make a great deal more money from advertising that it at present does to pay its legal fees.
In November a year ago, Universal Music Group filed a copyright suit against Grooveshark in November after it acquired emails that demonstrated that the employees of the music streaming service led an effort to post over 113,000 pirated songs. One of the emails supposedly from Grooveshark’s chairman Sina Simantob, said: “The just thing that I desire to add is this: we are achieving all this growth without having to pay a dime to any of the labels.” You can go through more of the internal emails, combined with the full complaint here.
Universal is searching for the maximum damages of $150,000 per song, meaning that potential damages could run up to a ridiculous $17.1 billion. In December Sony Music Entertainment and Warner Music Group followed suit.