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The legality of Grooveshark's business model is Groovehark's problem. Just using it passively as a music consumer is likely fine.

I'm aware of Grooveshark but, as you said, it is questionably legal. It has long been removed from the iOS App Store.

I can't help but wonder if these were the onerous terms that Apple would not agree to with Ping.

Grooveshark? Although legally, it's in a grey area...

Check out MOG. They have some sort of free option.