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EMI and Grooveshark break their business relationships

EMI and Grooveshark break their business relationships

It never sounds good that companies break their agreements for economic reasons, but the fact is that EMI, the only record company with which it had a contract with the music distribution service streaming Grooveshark has ended it. The reason is the payment of royalties based on the number of user views.

Already in the month of January of this same year, EMI filed a lawsuit against Grooveshark because they allegedly did not pay the license fees for the agreement they signed in 2009. From Grooveshark’s point of view, they indicate that it has been a difficult decision to separate , but that they cannot cope with the payment of the broadcast fees, in addition to being aware of the merger of EMI with Universal Music Group, which they consider a monopoly that violates the existing antitrust laws.

Seen as the subject goes, Grooveshark will have no choice but to act against those music files that are uploaded by its users that are not its property and receive a complaint from the DMCA. EMI was not the only one to have denounced Grooveshark, as Universal Music Group, Sony Music and Warner Music Group have also done it for alleged piracy.

Bad times are running in Grooveshark as he cannot make use of the songs from which they are not licensed and can put him in trouble with the major record companies.

Goes: VentureBeat