Despite a defiant response yesterday, Grooveshark appears to be a company on the brink of failure. New York Judge Thomas Griesa all but negated the company's Digital Millennium Copyright Act safe harbor defense that has protected YouTube and others, ruling on Monday that Grooveshark and parent company Escape Media were liable for copyright infringement by its employees who were encouraged to upload 5,977 tracks without proper licencing. The court's decision came after an email from Grooveshark CTO and co-founder Joshua Greenberg was revealed. Safe harbor protects digital companies who take down infringing material after notification from the rightsholder. But what...

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