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, 13 Jan 2010 @ 10:32pm

    Re: Re: RE: Labels being theives

    I think you are slightly misreading my point -

    I am addressing the reasons that it is legitimate of Universal to sue Grooveshark.

    I am not saying that there aren't benefits to musicians having their music shared etc. But that is a choice for the copyright owner to make, not someone else. You can't just walk into a shop, walk out with a pair of Nikes and then claim that its beneficial for Nike because you love your new shoes and tell everyone about them. It's up to Nike to make promo's etc - thats their decision.

    Digital goods are different than physical goods, so its not a 100% good comparisson, but the POINT is that it's the owners decision (in this case the owner of the copyright) how and to whom to distribute their work.

    I personally agree with you - I think it is an amazing thing that people can discover new music through these services. And I realize that new fans might be made as a result. But its up to the creator of the work to decide how and when to release it.

    See my other comment about being 'owed' something. I'm not saying anyone owe's me $15,000. But 'if' i decide to sell my music as opposed to give it away, well then they owe me whatever I am selling it for.

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