I'm not going to lie, we're competitors, and I have plenty of people tell me they're happy with Grooveshark, and that you provide a lot of value. I also hear the other side, and I hope that Grooveshark gets what it deserves from Universal.
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.