Spotify is 100% licensed. AFAIK, Grooveshark is more like Napster in that it's a free-for-all with user uploaded content, though they have worked out deals with some of the record companies.
I personally like grooveshark, because it literally has everyone song I want.
That's a pretty good sign that it's not really legal.
Right but they solved that problem in 2009. It's 2011 and Grooveshark is still mostly pirated content.
As far as I know, barely anyone use Grooveshark in Sweden while practically all my (University) friends use Spotify. Doesn't Grooveshark have some quite dodgy habits when it comes to paying the artists/using legit music files? Or was that some other music streaming service?
If nothing else Spotify has received a lot of good press in Sweden simply because it is Swedish. Patriotism :) And this was a Swedish study after all.