grooveshark stream their music unlicensed (except for a small amount they have licensed, but it's a relatively small amount) and make money from it. Grooveshark is wrong and I'd personally love to see them shut down. As much as the music industry is fucked up, unless you have permission to profit from someones content you shouldn't but grooveshark do and abuse the DMCA safe harbors.
Sure if grooveshark wasn't for profit then maybe it'd be justifiable, but they profit off a product they don't own or have the permission to, it's lame and entirely immoral. It's limewire but with the content stored in one place... they must have some damn good lawyers.
Though it may seem that way Grooveshark actually has a system compensating labels per time song is played. The unethical part is that its an opt-in system. In other words, they steal first and pay back later if asked nicely. On a plus, they do promote independent bands and offer compensation for such. So, I wouldn't go as far as saying they're like Limewire.
Sure if grooveshark wasn't for profit then maybe it'd be justifiable, but they profit off a product they don't own or have the permission to, it's lame and entirely immoral. It's limewire but with the content stored in one place... they must have some damn good lawyers.