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It's not enough that the mixtapes "imply" free release. You actually have to get permission from the artists (and songwriter), or you're fucked. Statutory damages are in the hundreds -- per song.

BTW, grooveshark's model was not to pass liability onto the users. It charges premium subscriptions, and sells ads, and uses that money to pay the web-music license to the music licensing corporation.

Monetization is possible, using Amazon affiliate links. Just be aware that if you don't seek permission, you're liable for every penny you earn (regardless of costs), plus the above mentioned statutory damages.

EDIT: note that for songs distributed by a major label, the artist may not own the copyright, so you may have your work cut out for you. The easiest way to avoid the hassle of getting individual permission for each song is to sign a licensing agreement with the music licensing corporation. The most expensive way to go would be to do nothing at all, since the record labels will go after you if they think there's any money to be got.



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