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.