Not only has a major new competitor emerged in the form of Spotify, but streaming music service Grooveshark has reportedly been hit with yet another copyright infringement lawsuit.
CNET reports today that a group of music publishers and songwriters filed the suit last Friday in a Tennessee district court, claiming that the service infringes on copyrights by letting users upload copies of songs that other users can then stream on demand.
It's fully browser-based, with some mobile apps also available, and has been touted as an effective and easy way to share music and playlists with others for free.
Grooveshark has long contended that it is DMCA compliant, meaning it will remove any track that labels or publishers claim is infringing. Two major labels in the past have balked at that defense as well-EMI Music and Universal Music Group.
The EMI lawsuit was settled, and the label now licenses its music to the service, but the UMG case remains ongoing. The RIAA, meanwhile, complained to mobile app store providers like Apple and Google and successfully had Grooveshark's Android and iPhone apps removed from their respective storefronts.
With Spotify poised to offer a free streaming tier to its service (currently available only to invited beta users), Grooveshark's free benefit is facing challenges. And other upstarts like Turntable.fm are stealing much of the social playlisting thunder as well.