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EMI sues Grooveshark over licensing dispute

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EMI, which licensed its music to Grooveshark after settling a lawsuit in 2009, has now sued the streaming music service again, claiming they have failed to make royalty payments. EMI is the fourth major label to sue Grooveshark in the past few months.

Grooveshark
Grooveshark

EMI has just become the latest of four major labels to sue streaming music service Grooveshark. The label had previously sued for copyright infringement, but ended up settling with Grooveshark in 2009 and licensing its music to the service. Now, however, it's saying that Grooveshark has "made not a single royalty payment to EMI, nor provided a single accounting statement." Grooveshark has allegedly estimated its debts at $150,000, but EMI says the actual amount is much higher.

In the last few months, Sony, Warner, and Universal Music have all filed suit against Grooveshark for copyright infringement, and the addition of EMI's suit means Grooveshark may have lost its only major supporter in the industry. Although this is a contract dispute rather than an infringement case, it could still be a major blow, and certainly doesn't inspire confidence that any other label will choose to license with Grooveshark.