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Step 1: Sue Grooveshark. Make it serious, hit them with everything.

Step 2: Send them a settlement offer. Make it huge. Billions. Make it something they'd never consider.

Step 3: Offer number 2 - Acquisition agreement. We'll drop the lawsuit and on-board your product/talent (letting the leadership duck out with a small token) if you agree to a non-compete contract.

Everyone wins.

That is such a beautiful strategy. I truly hope it doesn't come down to that for Grooveshark (I love them), but from a purely strategic point of view for the record labels, that move would be amazing.

Labels don't want a service like Grooveshark to exist, which gives away their product for nothing. If they wanted it, they could easily build it themselves.

They could build a similar service to Grooveshark that didn't give their products away for nothing. People would pay to stream EMI's entire catalogue, so long as the price was right.

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