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EMI Music is now suing Grooveshark, according to information confirmed by Digital Music News this morning. Grooveshark allows music fans to search and access songs on-demand, a platform that does not include downloads but features smart recommendations and community aspects.
Grooveshark executives pointed to a broader major label negotiation process. But the discussion with EMI appears to have abruptly halted over licensing costs. "Recently, EMI Records chose to abandon the template we've built with the help of other major copyright holders and opted for their traditional intimidation tactic of filing a lawsuit as a negotiating tool," the company stated. "We find the use of this negotiating strategy counterproductive, as Grooveshark has been willing to conclude an agreement with EMI Records that is economically sustainable for both EMI Records and a start-up company the size of Grooveshark."
Now, the site finds itself under a huge legal rock, one that is usually difficult to dislodge without huge sums of cash.
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