Grooveshark Shuts Down as Part of Settlement Agreement
NEW YORK, May 1 (UPI) — Music streaming service Grooveshark shut down Thursday as part of a settlement agreement with major record companies.
“We failed to secure licenses from rights holders for the vast amount of music on the service. That was wrong. We apologize. Without reservation,” Grooveshark said in a statement.
The operation would have users upload music to share with other users. Grooveshark paid record companies but did not give proper compensation to artists, the Recording Industry Association of America alleged.
Grooveshark’s damages bill could have tallied to $736 million but the company’s settlement agreement will likely reduce that number.
Along with shutting down the website, Grooveshark will clear its servers of all data and transfer ownership of the website, mobile apps, intellectual property, patents and copyrights.
Grooveshark encouraged users to take their business to legal services such as Spotify and Rhapsody.
“If you love music and respect the artists, songwriters and everyone else who makes great music possible, use a licensed service that compensates artists and other rights holders,” the statement read.
