
How Much Cash Did Grooveshark Burn Through in Legal Fees?
Some digital startups turn entrepreneurs and their investors into millionaires. The nine-year run of streaming service Grooveshark, which succumbed to legal woes and agreed to shut down on April 30…

Some digital startups turn entrepreneurs and their investors into millionaires. The nine-year run of streaming service Grooveshark, which succumbed to legal woes and agreed to shut down on April 30, arguably enriched lawyers more than anyone. How much did Florida-based parent company Escape Media outlay while keeping the service afloat? Experts believe that Escape was probably billed $500 an hour — typical in a large city like New York, where much of the legal wrangling took place — since first being sued for copyright infringement in 2009, with at least 100 billable hours per month.

This article first appeared in the May 16 issue of Billboard.