The news that 3 of the major labels (plus EMI if you ignore the fact they are not named in Grooveshark’s repost) have commenced a lawsuit for copyright infringement is predicatable but kind of sad.
Although Grooveshark have a contract with EMI (who also commenced proceedings against the company in January) it hasn’t stopped the alledgedly ailing major from claiming that it’s artists ‘have not recieved a single royalty payment’ from Grooveshark and ‘not provided a single accounting statement’
The Grooveshark system enables users to upload and share content potentially infringing copyright but Grooveshark have issued a strogly worded repost claiming the lawsuit fails to go into enough detail to merit a claim.
With the arrival of more ethical music websites such as Aurovine which has crystal clear accounting and is claiming to offer the best deal for artists and fans on the web, the marginalisation of unscrupulous sites should begin to take effect over the coming months and years.
The irony of the perceived exploitation of Spotify (owned by the majors) provides an interesting counterbalance to this story.