If you really did a good job of making sure the music that was uploaded wasn't copyrighted, you wouldn't have a business because nobody would be looking for that music. The period between illegal mainstream content going up, and that content coming down, is just long enough for Grooveshark to have a competitive cost advantage over companies who properly license their material from day one.
If the tactics aren't at least "questionable", then why has Universal declared "legal jihad" on Grooveshark?
P.S. My band's music is on your site. I didn't put it there and neither did anybody else with proper authority to do so.
My point is that we genuinely do our best to help artists. We're good people. If you want your band's presence taken down, you're entitled to have that done for you. You can also leave your music up so millions of users can discover it and find out more about who you are. We have tens of thousands of individual artists managing their own music and we get tons of fan mail from artists who say that our platform has not only decreased piracy but has actually encouraged fans to buy more of their music and see their shows.
The fact still remains that Grooveshark as it is wouldn't exist if not for the many years it's had to benefit from free use of mainstream content. That's not what DMCA was created for. It was created to protect people who mostly have UGC and occasionally have their terms violated. If Grooveshark was one of those companies, they would look more like Unsigned.com right now.
The music industry's legal system is complex. We all know that. Other companies are navigating that complexity in much more difficult ways, being much more honest to the spirit of the law. Grooveshark takes advantage of the laws and operates a service that has only one foot in legality. Of course it would be easy to build a business that way and then get the praises of those companies you forge relationships with _after_ your audience and platform is already valuable. But there is more to be said for a company that takes the hard road and does the same. I think Pandora has had a miserable time of it, but at least they did it right.
I didn't say you've had it easy. I said you built your company on the backs of artists' content without paying them. So, each employee went a few months without pay. Most of the artists playing on Grooveshark went (and are still going) much longer.
This isn't to excuse Grooveshark (honestly, not a user, so I have no horse in this race), but attracting the ire of the RIAA/MPAA in and of itself doesn't mean much except that you've gotten some big dogs pissed off at you.
The simple fact is, they should know what content they have licenses for, and what content they don't. Maintaining a list of the top 1,000,000 bands in the world and not letting anybody upload tracks with metadata that included those bands and song names in it would not be that difficult. The data is there, because otherwise users could not search for those band names and find what they're looking for.
Simply put, if Grooveshark did everything they could to fight copyrighted material being added to their site, they wouldn't have a business. Maybe now that they have some licenses and an audience they could survive, but they would have never gotten to where they were without significant illegal content being uploaded and accessed by their users.
I addressed this in my other comment, but as it turns out, this aspect of the problem is incredibly difficult. Metadata can be wrong and we can't always depend on it. So we use waveform analysis. But thats difficult too due to the indexing and storage requirements and the accuracy of the algorithm performing the search. Also this list is not finite. It changes constantly and parties are always bickering over rights to content and that takes time to sort out. We actually have a team of people who handle takedown requests, and we have another team of people who put in the necessary restrictions to keep content from getting played or uploaded.
Also, what's waveform analysis?
Within 5 minutes I can go find music on Grooveshark that is there illegally. It ought to be pretty easy for you to do the same queries and prevent that from happening. Would you prevent legal music? Yes. What is more important - that some cover band be allowed to post their music, or that Primus be allowed to retain their rights? Particularly when you consider that nobody is coming to Grooveshark to hear covers of Primus.
I'm not saying that operating legally in the music industry is easy - far from it. But on the spectrum of trying to, unprofitable Pandora is on one side, and Grooveshark is waving hello in the far distance.
I remember Napster attempting to create a system to block subsequent "sharing" of known copyrighted works.