Before stating Grooveshark as illegal, I suggest you google around a bit.
ok
"If you talk to folks in the recording industry, they seem to insist that Grooveshark is absolutely illegal. However, the company has structured itself in a way that it believes is perfectly legal -- which is why it's now upset that Google and Apple have each pulled its mobile app from their marketplaces and has issued an open letter, explaining why it's legal and asking Google and Apple to let it back into their app stores. "
"Universal Music Group filed a copyright infringement lawsuit against Grooveshark on January 6, 2010. This lawsuit is believed to have been the cause of Apple's pulling the Grooveshark application from iPhone in August 2010.
In March 2010, Pink Floyd sued EMG over the amount of royalties the band should receive for digital sales of their music, and as to whether tracks from their concept albums can be sold as singles. Pink Floyd won, and almost all of their tracks have been removed from Grooveshark."
"Groovesharks Terms of Service state that
you are personally liable and that you will indemnify, hold harmless and defend Escape Media Group "EMG", (Groovesharks parent company) and their respective directors, officers and employees, from any liability, including legal fees for any claim brought by any 3rd party.
So if you offer a song for sale for which they do not have the agreement of the copyright holder, you are liable, not them.
Grooveshark has no filters, it allows you to offer all music and any other user can buy that music from you.
So you it is your responsibility to know which artists have signed agreements with grooveshark. 70 have so far.
Grooveshark state that they hold any money collected for any artist with whom they do not have an agreement in place in an escrow account. But that wont help you if the RIAA, a record company or artist decides to sue you. It wouldn't help you either if any of the above decided to sue Grooveshark, because it is you who have traded the media, not them, you are liable, not them and in signing up, that is what you are agreeing in the End User License Agreement.
Grooveshark may be legal, but if someone buys any music other than the artists with whom they have made agreements, then
you have broken the law, not them. (These guys didn't call themselves sharks for nothing you know)"
Three different websites.