Negotiating Through Lawsuit Continues: EMI Drops Lawsuit, Signs Deal With Grooveshark

from the all-in-the-negotiation dept

We've noticed a troubling trend in how legitimate online music services are being pressured into deals with the major record labels. The labels begin the negotiations on licenses... and then sue the company. That, of course, makes life difficult for the startup, which is then pressured to offer even better (read: ridiculously onerous) terms to the labels. We've seen it happen over and over again, and saw it happening when EMI sued Grooveshark this past summer. And, of course, a few months later, the lawsuit is dropped and a licensing deal has been reached, though you can bet the terms are not quite what Grooveshark originally intended. That's what happens when part of the "negotiation" involves a lawsuit.

Filed Under: lawsuits, negotiation
Companies: emi, grooveshark


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  1. icon
    Allan Masri (profile), 15 Oct 2009 @ 10:35am

    Goodbye, Grooveshark, hello...?

    Too bad for EMI. Whatever they gave Grooveshark, it was too much. The technology still exists for another company to move in on EMI and force them to "negotiate" yet another deal. Why do small companies negotiate with big companies? Because it's better to get a deal than defend a lawsuit until you bleed to death.

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