"At no point in Grooveshark's history did I ever believe Grooveshark was going to fail. The same goes for Sam. Grooveshark is more than our product and Grooveshark is more than our ideas. Grooveshark is the group of people that we have in the company. If tomorrow, every record label and every large technology company all partnered up and launched a service that they've secretly been developing for ten years, that is Grooveshark but a thousand times better, and for whatever reason we couldn't compete with it, we would turn on a dime. We'd have a meeting tomorrow and we would both come in together and we’d say, 'okay, the bad news is this business model isn't sustainable. The good news is we're all still here, so what are we doing now?' and that would really be it."
Another one that sticks with me:
"Often, when we'd go pitch a potential investor, they'd offer us a bottle of water or something, and we'd always accept the water and then use it as a prop because when we'd say 'yeah, we want to compete with piracy' we would always get laughed at and told 'okay, well it's impossible to compete with piracy, everybody has tried this, you can't compete with free.' That comment always opened the door for us, we'd say, 'Well, what about this bottle of water right here, did you pay for it? Why did you pay for it? You can turn on a tap and get it free', and I really love that example, because value is a funny thing.
Value is really in the eyes of the beholder, it comes down to whether or not someone is willing to pay. There are a lot of reasons why someone would be willing to pay. In the case of water, it's not because they can't get it for free, it's because there's the convenience, there's the packaging, there's the perceived quality, and any of those 'reasons' could be applied to traditional music. So, even if CD sales are tanking and now downloads are plateauing, that doesn't mean that there isn't money in music. When I think of all of the friends I have who haven't bought a DVD in years and they pirate their movies all the time, those same people are the ones that, every single Friday night, will spend $10 or more on a movie ticket to see it once but they won't spend $5 to own a copy forever." - Josh Greenberg, Grooveshark CTO/Cofounder
Also relevant, an explanation from Josh on the legality of Grooveshark:
"First off, I’m not a lawyer -- but I'll do my best to speak on this subject. Essentially the main governing law is the Digital Millennium Copyright Act (DMCA), which is very long and very complicated. But there are a few parts of DMCA that, in particular, govern over services like Grooveshark, Myspace, Google, YouTube, eBay, Craigslist, Facebook, any place where users are posting content or sharing information in certain ways. Prior to this law going into effect, there was a paralyzing amount of ambiguity regarding the rights and responsibilities of consumers, service providers, and content owners. There were no defined parameters for services to operate under.
The way that the DMCA arbitrates everything is basically by saying that content owners have a right to their content at the end of the day. So, if a content owner points to a specific piece of content on a service and contacts the service provider using specific parameters, then the service provider has to take that content down.
There's also a lot more to it, including obligation for service providers to notify infringing users and to ban repeat infringers. I think what everything boils down to, is that the law recognizes that in a community of millions and millions of users, some will end up breaking the rules, but at the same time, content owners always have a right to point to their content to have it quickly removed; service providers have protection from what their users are doing as long as they comply with certain responsibilities toward content providers; and users have an obligation not to pirate or upload infringing content."