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Grooveshark Had Employees Upload Illegal Music

By - Source: Cnet

A number of Grooveshark-internal emails support Universal Music's claims that Grooveshark is building its music streaming business on a foundation of piracy.

Grooveshark apparently paid its employees for illegal music uploads. The business was a bet to escape the legal claws of Universal until Grooveshark would be able to sell user data for more money than what it would have to pay for music license fees.

The emails do not provide much in the way of new information but they do back up allegations previously made by Universal in a lawsuit filed against Escape Media Group, the parent of Grooveshark, last year. Universal previously accused Grooveshark of copyright infringement and claimed that members of management had uploaded pirated songs themselves. Escape dubbed Universal's accusations a "gross mischaracterization of information," but these emails suggest Universal was right in its allegations.

According to the emails released, Grooveshark's chairman Sina Simantob intended to build Grooveshark on the cheap, and wanted growth "without paying a dime to any of the labels." Written in December of 2009, the emails also suggested that Grooveshark could beg for mercy in the case it is accused of a crime. The goal was to use piracy to eventually grow to 100 million users then sell user data to music labels. Simantob's intention was to charge more for that data than what Grooveshark would have had to pay for music licenses.

This plan is not the only disturbing piece of information in the emails. There are also parts that support Universal's claims that Grooveshark employees may have illegally uploaded as many as 100,000 tracks to the Grooveshark library. In fact, there appears to have been a "quota" that employees had to meet and bonuses were paid to employees that exceeded that quota.

In an email addressed to venture capitalist Andrew Lipsher, Simantob wrote that he bet "the company on the fact that it is easier to ask for forgiveness than it is to ask for permission." If authentic, the internal emails indicate that Simantob, who says that Grooveshark's business is protected by the DMCA and is not responsible for copyright violations of its users, knew of the illegal foundation of the business. What makes matters worse for Grooveshark is the fact that its platform is not only used for streaming music, but there are music downloaders that hook into the platform and rip already pirated content again.

There are 24 Comments.
Other Comments
  • 5
    LuckyDucky7 , November 30, 2011 2:42 PM
    And if SOPA passes that won't matter. Universal will just say they're suspicious and Grooveshark will have to pull down every song published by Universal or face elimination from the Internet.
  • 2
    alyoshka , November 30, 2011 4:54 PM
    Upload is illegal and so is download..... so why in the world are we using the net eh?
  • 0
    alidan , November 30, 2011 5:20 PM
    LuckyDucky7And if SOPA passes that won't matter. Universal will just say they're suspicious and Grooveshark will have to pull down every song published by Universal or face elimination from the Internet.


    no no no, you are wrong,

    universal would say they are suspicions to a lawyer who goes to a judge and in under 3 hours, gone from the internet. groove shark no mater what it does if that passes could prevent it.
  • 5
    demonhorde665 , November 30, 2011 6:40 PM
    is it me or does it seem like every one msised the picture about them wanting to sell user information .... i hope this company burns. any company that is found of bad buisness practices needs to go down long beofre theya re ever in any real position of power. screw the illegal download crap , the fact they started off with the intention to sell user's data is out right perverse to put it mildly. though i'm sure they would avhe trhown this right on thier EULA , it is still tehw rong way to start a buisness. there are companies taht get paid to collect " private user data" and they pay people for said data ,and these jack a--es were gonna get paid to so they could sell people's data. it makes me want to beat these con artist .
  • 4
    singemagique , November 30, 2011 7:11 PM
    Wow, why would you ever write this kind of stuff in an email that can be traced back to you?
  • 2
    anonymous@guest , November 30, 2011 7:31 PM
    I hope this guy goes to jail for a long time. Everything about this is wrong.
  • 4
    NuclearShadow , November 30, 2011 7:55 PM
    alidanno no no, you are wrong, universal would say they are suspicions to a lawyer who goes to a judge and in under 3 hours, gone from the internet. groove shark no mater what it does if that passes could prevent it.


    I support SOPA, I have a suspicion that everything on the internet is infringing on my copyrights. Therefor I demand that all corporations be removed from the internet, as well as any law enforcement agencies. I of course do not seek any money or wish to pursue the matter in court and will leave it at suspicion which is good enough to get the job done.
  • 0
    alidan , November 30, 2011 8:35 PM
    NuclearShadowI support SOPA, I have a suspicion that everything on the internet is infringing on my copyrights. Therefor I demand that all corporations be removed from the internet, as well as any law enforcement agencies. I of course do not seek any money or wish to pursue the matter in court and will leave it at suspicion which is good enough to get the job done.


    its sad but thats how it will possibly go but in reverse with the corps doing that to everyone.
  • 0
    tuffjuff , November 30, 2011 8:39 PM
    People who commit piracy make me sad. :( 
  • 1
    rawful , November 30, 2011 9:42 PM
    The business was a bet to escape the legal claws of Universal until Grooveshark would be able to sell user data for more money than what it would have to pay for music license fees.


    Holy crap... really? Why on earth is it legal for them to sell "user data?" When did that become something people are just okay with? Why isn't everyone pissed off that corporations do this? When did privacy become a secondary privilege that you don't care about?
  • 0
    rawful , November 30, 2011 9:45 PM
    On top of that.... the article is written stating that the disturbing thing about it is the illegal music files being uploaded. WHO GIVES A CRAP? They make enough money, they can go die in a fire. They are unnecessary in today's age. They are just leeching off of the artists and the consumers.
  • 0
    zak_mckraken , November 30, 2011 10:11 PM
    Ouch...
  • 1
    anonymous@guest , November 30, 2011 10:12 PM
    I have proof that Grooveshark is using illegal downloads as a source for its streaming service. Once upon a time, I "illegally" downloaded a CD from the web, but one track was skipping at time 2:09. This CD has very limited diffusion, so I went on Grooveshark with the intention of streaming the track, recording it through my soundcard analog output, and using the resulting wav file to patch my mp3 file (Goldwave sound editor).

    Lo and Behold, the Grooveshark streaming also skips at time 2:09. QED: Grooveshark has used the same "illegal" download as a source.
  • 2
    rohitbaran , November 30, 2011 10:25 PM
    tuffjuffPeople who commit piracy make me sad.

    And greedy corporations make me angry.
  • 2
    g-unit1111 , December 1, 2011 12:21 AM
    demonhorde665is it me or does it seem like every one msised the picture about them wanting to sell user information .... i hope this company burns. any company that is found of bad buisness practices needs to go down long beofre theya re ever in any real position of power. screw the illegal download crap , the fact they started off with the intention to sell user's data is out right perverse to put it mildly. though i'm sure they would avhe trhown this right on thier EULA , it is still tehw rong way to start a buisness. there are companies taht get paid to collect " private user data" and they pay people for said data ,and these jack a--es were gonna get paid to so they could sell people's data. it makes me want to beat these con artist .


    I completely agree - that's worse than anything else mentioned in this article. I don't use Facebook strictly for that reason - I refuse to give my private data to anyone who uses it to make a profit.
  • -1
    demonhorde665 , December 1, 2011 12:27 AM
    rawful
    The business was a bet to escape the legal claws of Universal until Grooveshark would be able to sell user data for more money than what it would have to pay for music license fees.
    Holy crap... really? Why on earth is it legal for them to sell "user data?" When did that become something people are just okay with? Why isn't everyone pissed off that corporations do this? When did privacy become a secondary privilege that you don't care about?

    this is what i'm sayibng in my first post , whoc ares about ilegal music downloads thes cary thing to me was the fact they started abuisness with the onset intentions of selling private user data
  • 1
    gm0n3y , December 1, 2011 1:24 AM
    I think that everyone is over-reacting to the user data selling bit. They aren't selling any personal information about you. I have an account with Grooveshark and all they ask for is an email address. The data they would be selling would be user's listening habits. Personally I think that its morally acceptable for a company to do that since it is virtually anonymous (assuming you just make a BS email account, which is what I did).
  • 1
    Cazalan , December 1, 2011 2:04 AM
    Welcome to Corporate America. They probably won't even get jail time. Just a fine that never gets paid cause they'll go into bankruptcy. The owners get to walk away with their huge salaries. Some early investors will get bank. The late investors and users get screwed.

    BTW most major websites operate like this today. It may be detailed in their terms and services and privacy policies but you'll need a lawyer to interpret it. The best you'll get is a class action lawsuit where some lawyer gets a few million and the users get $1. Good luck collecting.

    We prefer to spend 100 billion a year on the "War on Drugs" instead of going after white collar criminals.
  • 0
    Trueno07 , December 1, 2011 3:38 AM
    demonhorde665is it me or does it seem like every one msised the picture about them wanting to sell user information .... i hope this company burns. any company that is found of bad buisness practices needs to go down long beofre theya re ever in any real position of power. screw the illegal download crap , the fact they started off with the intention to sell user's data is out right perverse to put it mildly. though i'm sure they would avhe trhown this right on thier EULA , it is still tehw rong way to start a buisness. there are companies taht get paid to collect " private user data" and they pay people for said data ,and these jack a--es were gonna get paid to so they could sell people's data. it makes me want to beat these con artist .


    I also caught that, what scumbags.
  • 0
    enkichild , December 1, 2011 4:46 AM
    I love Grooveshark and support it. I believe it is wrong to have to pay for music, I believe it is a choice you should make after listening, whether or not to support the album, to support the next one.

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