confirmed the uploading of more than 150,000 files to Grooveshark by its employees, including
thousands of copies of sound recordings owned by the plaintiffs. Internal records further
established that Escape Media streamed copies of the infringing employee uploads millions of
times to Grooveshark users.^1601
The court granted the plaintiffs’ motion for summary judgment of liability on the part of
Escape Media and its two founders for direct, vicarious, contributory and inducement of
infringement based solely on the uploading of infringing files by its employees and management
to the central library – the plaintiffs did not seek to hold the defendants liable for infringement by
users of the Grooveshark service. With respect to direct infringement, the court found that the
plaintiffs had established, through analysis of file metadata and use of Audible Magic’s audio
fingerprinting technology to confirm that copies of certain files uploaded by the defendants
corresponded to the plaintiffs’ sound recordings, that the defendants illegally uploaded 4,053 of
the plaintiffs’ copyrighted sound recordings. The court also found that the plaintiffs were
entitled to a finding of 1,944 additional illegal uploads based upon the defendants’ spoliation of
evidence of upload activity. The court further found that Escape Media’s database records
confirmed that it had streamed, or publicly performed, copies of the plaintiffs’ copyrighted sound
recordings at least 36 million times. Based on this evidence, the court found that the defendants,
by instructing their employees to repeatedly upload substantial volumes of popular copyrighted
music files to Grooveshark, had engaged in the required volitional conduct necessary to support
a finding of direct infringement.^1602
The court found the defendants liable for vicarious liability because Escape Media had
the right and ability to supervise and control its employees’ infringing activity, and in fact had
directed its employees to engage in copyright infringement. Escape Media had received a
financial benefit from the infringing employee uploads because they served as a draw for
Grooveshark users. Escape Media had relied on the uploaded sound recordings to build a
comprehensive music catalog in order to attract users to the service and then monetize the illegal
content by generating advertising revenue and other fees.^1603
The defendants were liable for inducement of infringement because Escape Media and its
executives directed their employees to engage in the uploading of digital music files to
Grooveshark, including overtly instructing the uploading of as many files as possible as a
condition of employment. The defendants had therefore engaged in purposeful conduct with a
manifest intent to foster copyright infringement via the Grooveshark service. Finally, the
defendants were liable for contributory infringement because they had actual knowledge that
their employees were uploading copyrighted files onto Grooveshark, and they materially
contributed to the infringing conduct by actively instructing employees to upload copyrighted
sound recordings. Additionally, senior Escape Media officers had personally participated in the
(^1601) Id. at 14-17.
(^1602) Id. at 19, 54-56 & 70.
(^1603) Id. at *63-64.