Grooveshark Wins DMCA Argument in Universal Dispute

From Billboard:

It’s not a secret that Universal Music isn’t much of a fan of Grooveshark, the music discovery service that streams over a billion songs every month. The record giant has been pursuing several court actions against the company, including a federal lawsuit launched last year that accused Grooveshark’s employees including its chief executive of illicitly uploading 100,000 songs in a case that could be worth billions of dollars.

In an ongoing copyright case in New York state court, Grooveshark’s parent company Escape Media has brought counterclaims that allege UMG had interfered with its contracts and illegally exploited its significant market power by convincing third parties not to do business with Grooveshark. Among the claims is that UMG helped induce Apple into pulling its app from the iTunes store, caused Hewlett-Packard to back off of an advertising deal, and made INgrooves repudiate a licensing agreement for songs.

On Tuesday, the New York judge denied Grooveshark the chance to go forward with counterclaims on the antitrust front but has decided to allow the digital company to pursue UMG for tortious interference.

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