The controversy around Groovesharkcontinues. EMI’s recorded music division has suspended it’s deal alleging non-payment. EMI was the only major label who has reached a deal with the controversial music streamer.
According to court documents, Grooveshark signed “a promissory note on Nov. 29, 2011, unconditionally promising to render payment of the sum certain of $450,000 to (EMI-owned) Capitol Records in accordance with the payment schedule.” But on March 15, Grooveshark failed to make a $100,000 payment, according EMI, who also say that Grooveshark has not made any payments at all to the label.
But in a written response to CNet, Grooveshark tried to paint a very different picture: “Grooveshark was recently forced to make the difficult decision to part ways with EMI due to EMI’s currently unsustainable streaming rates and EMI’s pending merger with Universal Music Group, which we consider monopolistic and in violation of antitrust laws.”
The company also claims that, “to date, Grooveshark has paid over $2.6 million to EMI, but we have yet to find sustainable streaming rates.” They also appear to beleive that operating without direct licenes from labels or publishers should not be seen as an affront to artists. “Grooveshark’s dedication to artists and rights holders remains the same,” the company’s statement concluded.