We reported on Monday that Grooveshark was facing potentially immense financial damages judgment in its drawn-out copyright infringement trial with record labels. That particular threat appears to be neutralized in a settlement which includes the final closure of Grooveshark.com, the service, and a handover of all company assets.
The Grooveshark website now contains only abashed message of guilt and apology. “We made very serious mistakes,” the contrite message states, referring to lack of licenses for the music it was distributing. “That was wrong. We apologize.”
The message, and further actions, are part of what Grooveshark calls a “settlement agreement with the major record companies.” Terms include wiping all server content, and turning over all intellectual property to the labels — including patents and copyrights. That last part is potentially interesting, as the labels could conceivably use the Grooveshark technology which made the service popular to millions of users, in a new and legal incarnation.
Grooveshark recommends alternatives Spotify, Google Play, Beats Music, Deezer, Rhapsody, and Rdio.
“Thank you for being such passionate fans,” the message concludes.