News

The music service agrees to wipe its computer servers clean and transfer ownership of its website, mobile apps and other intellectual property.

Escape Media, the parent company of the infringing Grooveshark music service, has agreed to a legal settlement with the major record companies that includes the termination of all operations, wiping its computer servers of all the record companies’ music, and surrendering ownership of its website, mobile apps and intellectual property.

Escape Media today entered into a consent judgment with a permanent injunction with Universal Music Group, Sony Music Entertainment and Warner Music Group. Under terms of the settlement, Grooveshark founders Josh Greenberg and Sam Tarantino admit to creating and operating an infringing music service and Escape Media agrees to significant financial penalties if the terms of the settlement are not followed.

In a statement, the Recording Industry Association of America (RIAA) said, “This is an important victory for artists and the entire music industry. For too long, Grooveshark built its business without properly compensating the artists, songwriters and everyone else who makes great music possible. This settlement ends a major source of infringing activity.”

“Despite the best of intentions, we made very serious mistakes,” Grooveshark said in a statement. “We failed to secure licenses from rights holders for the vast amount of music on our service. That was wrong.  We apologize.”

In a letter that is posted on Grooveshark’s website, the company urges users to sign up for legal and licensed music services. More information on available services can be found at http://whymusicmatters.com/find-music.