For the past year, Grooveshark has been in talks with EMI Records and other copyright holders to negotiate licensing agreements for the use of their content. We are pleased to announce that over the past few months Grooveshark successfully concluded mutually beneficial agreements with artists, labels, and publishers that we hope to be a template for other such agreements with additional copyright holders.
Recently, EMI Records chose to abandon the template we’ve built with the help of other major copyright holders and opted for their traditional intimidation tactic of filing a lawsuit as a negotiating tool. We find the use of this negotiating strategy counterproductive, as Grooveshark has been willing to conclude an agreement with EMI Records that is economically sustainable for both EMI Records and a start-up company the size of Grooveshark.
Grooveshark is run by a group of young and passionate musicians. We love music, we make music, and we believe that the use of all music should be paid for. We adopted this core philosophy at our inception and to date have concluded agreements with hundreds of record labels, major US performance rights organizations, and thousands of independent artists who support Grooveshark’s business model. (See: Grooveshark Artists)
As musicians, we support the rights of copyright holders and strive to sign sustainable agreements with all content owners, ensuring that all artists get paid–or we agree to remove content from our system in accordance with our DMCA Takedown Policy. We hope that EMI Records eventually follows the lead of the many forward-thinking labels we are already working with, who would rather get their artists exposure and a fair share of our revenue than block content access and force customers to illegal networks.
We understand that the economy of the digital music business is in a state of flux, and we hope to help ease this transition by providing the required new tools and services that lead to the next generation of the music industry. We respect the ownership rights of the major labels and publishers, and our core mission has always been to compete with piracy by offering a service that is genuinely better than what illegal networks offer, while also ensuring fair payment to copyright holders. Our next important step on our road to success is to conclude a mutually beneficial agreement with EMI Records that is sustainable for both EMI and Grooveshark.
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You already offer a superior service than the illegal networks. Offering higher quality content, and more of it, will certainly cement your position at the top.
Love your work, keep it up…
Perreaux
They can’t see the forest for the trees. I’ve found cds on Grooveshark that I never new existed and went right out and bought them. EMI are just hardasses is all.
mochachick8
Grooveshark is the best web based music application that EVER existed. EMI could profit more from this than from legal mp3 downloads…i can’t even contrast that with real numbers but its a given.. a given for anyone with half a brain.
I hope you guys still grow strong and more labels and artists are willing to support your marvelous project.
Ausgebombt
I echo the comments above; i’ve found content on Grooveshark not found anywhere else. You should be congratulated for having the tenacity to work towards a business model for the benefit of all — music fans/listeners, labels, musicians, publishers, yourselves as entrepreneurs. This philosophy *is* grounded in an ethic of fairness; unfortunately, something that is clearly a burr in EMI’s saddle. Keep at it, keep going, and keep moving forward … and thanks for navigating these unchartered waters.
DoreenatDMS
Boo EMI. Why hate on the legit web site that’s trying to work with you? Illegal downloads are always an alternative, but Grooveshark is better, faster, more powerful, and *trying* to work with you.
Grooveshark, Y’all know we love you.
matt
say no more…
http://listen.grooveshark.com/#/song/Emi/30691
Aaron
Resuming: I <3 Grooveshark, and it’s legal, 4ever.
KeLopez.CL
The way people buy and listen to music has been changing slowly over the last few years, and now broadband is common the change has picked up pace and it seems we are emerging into the future of the front end of music industry.
EMI seem to have suddenly decided that rather than let other people play with their ball, they wanna keep it for themselves. Whether they’re too mean or just too blinkered, the whole thing sucks!
Hope it works out ok for GS. I didn’t even know half that stuff about the business and it’s great to see such a positive ethos at work.
Steevil
Grooveshark is the ONLY service that gives freedom in streaming music. If you go down for some reason… well… I can again live without music. It’s not a big deal. It’s simply Grooveshark or no online music.
I <3 GS
Kudos
chanux
Your music discovery/ listening service is by far one ofnthe best around. As an artist, I can genuinely say that your service is in no way hurting the industry. It’s no longer about selling music, it’s more about selling a brand and merchandising it, using free streaming of music as a tool to generate interest.
Mike Borgia
[…] it happened. Reports are coming (WSJ) in that EMI is suing Grooveshark for copyright […]
I was wondering when Grooveshark would get sued…. « Means of Production
Grooveshark has opened my eyes to tons of new artists and even completely new genres! Believe me, grooveshark is GIVING money to artists, not stealing from them. Keep it up, GS.
RottingOrange
Let’s see here “EMI sues Grooveshark” and “Beatles to sue EMI for millions”
Do you get the picture?
Another thought….EMI would rather make NO MONEY and have their songs on illegal networks rather than working a remuneration deal with Grooveshark.
Comments?
Steve
you guys are disingenuous. you –and surely your attorneys– know that you can’t offer music, let alone *host it*, without a license. you can spin it all you want as your company standing up to the man, but the truth is, you’ve got no legal leg to stand on. best of luck.
alan
[…] num tribunal de Nova Iorque em Maio passado. Segundo os responsáveis pelo serviço afirmam no seu blog, trata-se de uma manobra intimidatória que visa forçá-los a ceder aos termos draconianos […]
EMI contra as startups de música online: processo contra Grooveshark | Remixtures
I support you guys 100% and echo the above comments! You guys are truly awesome and I hope that the service continues!
James Hartig
This is such a tricky subject.
Honestly, these big record labels have got to get with the market or go down. The music industry is clearly becoming progressively more independent and progressively more web-based.
I realized recently that I use Grooveshark more than iTunes on a regular basis.
If the record labels can’t understand how unbelievably profitable this would be for them, I don’t know what to tell them. Seriously, a two cent royalty for each time a song is played would become millions for them shortly.
Best of luck to Grooveshark. And if you need an excellent contract attorney, or get involved in litigation, contact me. I will tell you where to go.
Your friend,
Sam Julien
Sam Julien
@Steve,
I think you’re right — they are so stuck in their ways that they would rather spend money on litigation than profit through technology.
Old formula:
Product + Distribution = Profit
They are freaking out because the method of distribution has been pulled from under them.
New formula:
Product + Brand identity = Profit
Distribution almost doesn’t matter anymore. In this market, people buy things because of the trust they have developed for the business or individual selling the product. The method of distribution is way lower on the list.
The astonishing part is that the distribution corner of the market for the record labels started to disappear when CD burners were invented! They should have seen this coming a decade ago and been the first to embrace digital music.
I’m getting all worked up here. Loving the discussion, though.
Sam Julien
Sam Julien
GREED. The American way. Thats what this is about. Not the music. Not the rights of the artist. Some jerk-off realized he only made nine billion instead of ten billion last quarter. Grooveshark is playing on my computer 24/7! Keep up the good fight!
Long Live Free Music
Thomas From Reality
Thomas From Reality
I’m trying to understand how you guys can offer a service that offers essentially the same thing as Napster or Rhapsody, but with no charge to the end user, and no license from the copyright owner, and NOT EXPECT TO BE SUED. I mean, this is Digital Music 101 - you can’t host music, allow users to upload content, advertise having “every song in the world”, launch the site without license and expect to exist.
You’ve got a very cool site, I think it works great, kudos for that. But whoever is funding you is very brave. Within a year you’ll likely be shut down and have a massive infringement liability.
I think services like Grooveshark are the way forward, the way people want to hear music. It’s a shame that labels, publishers and performing rights societies cannot come up with more reasonable licensing terms so great ideas like Grooveshark can build a business and survive. But this is the world we live in, no matter how much we’d prefer an alternate reality.
jim McDermott
Alan makes a good point. I mean, as it stands, theres tons of EMI music on your website, and from what I can tell you are not paying them for it. Am I wrong?
I love your program and I hope that at some point it can be profitable for you so that we can all continue to benefit from it. But, right now, I think your business model is questionable. If I were EMI I would probably be doing the same thing.
Matt
I LOVE GROOVE SHARK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
sandtreas
[…] Secondly, it’s to let other people know about this awesome service before it gets sued into the ground by the recording industry. Unfortunately it’s only a matter of time. I’m glad to see them trying to be legitimate about it, but no major record company will ever sign on to their business model of letting anyone listen to anything at any time on demand for free with no force-fed ads. Hell, they’ve already been rejected by EMI. […]
Blogus Arbitrarius » Blog Archive » Grooveshark Is Awesome
Hmm. I guess rather than answer criticism, you choose to ignore it. I wonder how that is going to work for you in court.
Matt
Hmm. I guess rather than answer criticism, you choose to ignore it. I wonder how that is going to work for you in court.
Questionable
hi i think that grooveshark is the best thing that evr existed and EMI need to wake up and realise that grooveshark is actually helping them sell their music and NOT taking sales away from them. WAKE UP EMI
Sarah
So a publisher sells a book for $6. I have a website that allows people to give copies of the book away for free, and I get $1 in ad revenue and offer them $0.50. So I make $0.25 after expenses, and the publisher loses $5.50. Or at least the perceived value of the $6 book takes a hit (whether or not they would have lost a sale).
Gee, how come all the majors haven’t signed up yet?
Lisa Masterson
EMI has no vision. The eventual progression will be that people will pay a cent every time they hear a song, which will probably average a dollar a day per consumer - plenty to keep the music machine going. People will pay $30/month, which is way more than they are paying right now, and they’ll be willing to do it for the convenience and joy it brings, just like they pay for electricity and cable. EMI would be lucky to get on board with your current ad-based approach, so that they can be at the cultural vanguard when banks finally stop being medieval about micropayments.
That they are instead trying to crush your site like a bunch of thugs makes me equal parts disappointed and furious.
Perhaps you should consider getting in touch with these folks: http://arstechnica.com/tech-policy/news/2009/05/harvard-prof-tells-judge-that-p2p-filesharing-is-fair-use.ars
Netrunner
Me personaly never supported anybody on the web or stuff like that… because i found it lame and waste of time…!! but Grooveshark i can say you are the best in first decade of 21st century… This is not exaggeration… best online web based service ever !!! love your job… and i am sure you have full support from your fans… let the EMI be EMI for itself and you stay as Grooveshark forever…
Eddie
What is this VIP thing I see on the main site? Please tell me your won’t change the excellent service you have!
Japong
How can I/we support your battle with EMI - I’m thinking email campaign ala petition. I have a vested interest, beyond enjoying your site: several friends are musicians, I worked as a roadie and tech for a few year and I have NEVER downloaded (read stolen) music or any other media. My loyalty towards music is self-explanatory; my position on movies is an extention sumarized as theft is theft, regardless of how much they make or my dislike of specific individuals or corps. EMI needs to understand that in a devestated industry, their anal rententive stance is ludicris.
Colin
Your service pwns Spotify. They may have the major labels aboard (because they are in RIAAs pocket) but they don’t offer much that’s further from mainstream tastes.
trolllover