EMI Cuts Ties With Grooveshark
April 4, 2012 at 4:28 AM (PT)
The relationship between GROOVESHARK and EMI MUSIC has finally hit rock bottom, with the music label terminating its agreement with GROOVESHARK. CNET reports "court documents filed in NEW YORK state court reveal that the recorded-music division of EMI alleges GROOVESHARK has failed to meet the financial obligations of its licensing agreement."
EMI had joined a lawsuit which began in NOVEMBER (NET NEWS 11/21), when UNIVERSAL MUSIC GROUP filed against GROOVESHARK after it obtained e-mails and other records that showed GROOVESHARK's leaders led an effort to post more than 100,000 pirated songs onto the music service. Then in DECEMBER (NET NEWS 12/15/2011), SONY MUSIC ENTERTAINMENT and WARNER MUSIC GROUP joined the suit.
GROOVESHARK has responded to EMI's move, claiming "GROOVESHARK was recently forced to make the difficult decision to part ways with EMI due to EMI's currently unsustainable streaming rates and EMI's pending merger with UNIVERSAL MUSIC GROUP, which we consider monopolistic and in violation of antitrust laws. To date, GROOVESHARK has paid over $2.6 million to EMI, but we have yet to find sustainable streaming rates. In spite of this, GROOVESHARK's dedication to artists and rights holders remains the same."