Grooveshark calls itself a radio though, of course, it’s not. It’s an on-demand service, which makes it more like Spotify than Pandora. If it was an online radio it would have to adhere to the US blanket licensing agreement Pandora adheres to and pay for all the music used on the site. Though Pandora pays artists and songwriters less than Spotify, it does have a licence for all music on its site – Grooveshark does not.
The Guardian (full story)