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Grooveshark Receives Devastating 420 Million Dollar Lawsuit

Riddled with a slew of lawsuits from record labels since 2009, online streaming service Grooveshark undoubtedly has quite the troubled past. The company is still recovering from losing many of these cases, many catalyzed by a failure to obtain the necessary licenses and rights from labels, however their latest debacle might prove to be the final nail in the coffin.

The most recent case is between Grooveshark’s parent company Escape Media and EMI Music, which was ruled in favor of the latter with damages potentially reaching up to $420 million dollars. Coupling protection from the Digital Copyright Management Act with a ‘one-strike’ repeat infringer policy, Grooveshark believes they are going above any beyond what is necessary to meet regulations. Their statement after this ruling justified their actions in stating that,

"Our ‘one-strike’ repeat infringer policy is even faster than the ‘three-strike’ policies used regularly in the industry for stopping infringing uploads, and we believe our ‘DMCA Lite’ option goes above and beyond DMCA requirements by executing good-faith takedowns in a variety of situations where proper DMCA takedown notices are not provided."

Despite this, the courts have ruled that Grooveshark’s current policies still do not meet the regulations outlined in the DMCA. With so many legal woes, Grooveshark might be at the end of its tenure as an online streaming platform.

[H/T Hypebot]

Cover Image via Consequence of Sound

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