Cnet.com reports Escape Media, the parent company of Grooveshark, agreed to cease operations and surrender ownership of its website, mobile apps and intellectual property in the settlement, according to the Recording Industry Association of America. Escape Media had faced the possibility of paying hundreds of millions of dollars in damages to Universal Music Group, Sony Music Entertainment and Warner Music Group.
"This is an important victory for artists and the entire music industry. For too long, Grooveshark built its business without properly compensating the artists, songwriters and everyone else who makes great music possible. This settlement ends a major source of infringing activity," said a statement by the RIAA, the industry trade group that represents the major labels.
Launched in 2007, Grooveshark's service allowed its 30 million web and mobile users to search for and stream an unlimited number of songs produced by major record labels. But the service got the company into legal trouble after several record labels argued that Grooveshark lacked the necessary rights to upload the copyrighted songs.
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