Grooveshark Agrees to Cease Operations

April 30, 2015

Music service to wipe its computer servers clean, transfer ownership of website, mobile apps and other intellectual property

WASHINGTON, DC – 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.

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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.

In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi-Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.