It seems as though you are correct. http://techcrunch.com/2009/10/13/grooveshark...

It seems as though you are correct. http://techcrunch.com/2009/10/13/grooveshark-slips-past-emis... They have signed with some labels and as such can legally play some content. On the other hand, they were recently kicked off android over copyright concerns, so apparently they arn't airtight http://arstechnica.com/gadgets/news/2011/04/google-kicks-gro...