Grooveshark & Merlin Make It Official. But It Wasn’t the Friendliest Negotiation…

Merlin and Grooveshark are indeed locking arms on a licensing agreement, according to a confirmation from Merlin on Friday afternoon.  The handshake was first reported on Digital Music News on Thursday, though a number of fresh wrinkles and details have subsequently emerged.

That includes the overhang of Merlin litigation against Grooveshark, always a nice starting point for a fruitful renegotiation.  Just like an earlier negotiation involving EMI, Grooveshark wipes the lawsuit while Merlin extracts a few juicy terms.  That includes retroactive payments for streams of Merlin member content, as well as ongoing royalties for future on-demand streams.

Perhaps playing the tough Brit, Merlin chief Charles Caldas offered some words of caution against further funny business. “We wish Grooveshark all the best going forward and hope that this will be an important reminder to other music services looking to launch soon,” Caldas said.

Merlin labels include Rough Trade, Beggars Group, and Merge, among many others.  Merlin remains at an impasse with Rdio.


3 Responses

  1. PartlyCloudy

    Why does Grooveshark model make absolutely zero sense to me? Oh wait i know: every licensing partner first bends them over in court – THEN does a deal with them.

    uh, is it 2006 or something ?

  2. NathanJE

    jeez – licensing is still totally awful and ridiclous. Here I thought this was going to be an interesting deal or something then I see that it was done under legal blood.

    Seems like you take path

    (a) Spotify – get no where

    (b) Groove shark – spend $$$ and maybe survive

    (c) Rdio – pay butload and maybe be okay?

    (d) ?

  3. @notshocking (via Twitter)

    Merlin-Grooveshark negotiation: Merlin wipes lawsuit, Grooveshark to make retroactive payments