Grooveshark Sued Again... Negotiating Via Lawsuit Continues

from the and-so-it-goes dept

We've discussed in the past how the record labels have this habit of "negotiating through lawsuits," in that they will often sue an innovative music startup, even as they're negotiating licensing deals with them, just to get the upperhand in the negotiation. It's happened with countless music startups -- and it's one of the main reasons so few survive. They're overly burdened with ridiculous costs from the beginning. We already saw that EMI used this strategy with Grooveshark, in forcing it into a licensing deal, and apparently Universal Music decided it could do the same thing. It's now suing Grooveshark as well -- even though Grooveshark insists it pays all the appropriate licenses. Of course, the end result of all this is that it gives Grooveshark more publicity, but may make it more difficult for the company to survive.

Filed Under: lawsuits, negotiation
Companies: emi, grooveshark, universal music


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  1. identicon
    Musician, 12 Jan 2010 @ 3:26pm

    Re: Re:

    I just want to clarify something -

    Grooveshark is being sued for using pre-1972 recordings. In 1972 the laws changed, and are now covered by other laws. So this lawsuit isnt over ALL of the music on Grooveshark, just the pre-1972 releases owned by Universal.

    For releases after 1972 Grooveshark is relying on the DMCA laws (as does Youtube etc). It essentially means that they are safe from prosecution until they receive a take-down notice from the copyright owner (or agree to pay licensing fees) -

    http://en.wikipedia.org/wiki/Digital_Millennium_Copyright_Act

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