Apple yanks Grooveshark music application from App Store

Apple (NASDAQ:AAPL) has removed streaming music service provider Grooveshark's iPhone application from the App Store less than two weeks after its release, citing complaints received from Universal Music Group UK. The Grooveshark service enables users to stream music and share content from its website, as well as upload their own libraries, with applications spanning mobile platforms including Android, BlackBerry and Symbian; consumers can opt for a free, ad-subsidized model or pay $3 per month/$30 per year for an ad-free subscription. Grooveshark worked on its iPhone app for over a year prior to its App Store release--on its blog, the startup notes it received a letter from Apple explaining the application was removed, but does not specify the nature of Universal Music's complaint. "This comes as an absolute surprise to us, and we are not sleeping until we figure out exactly how to fix this," Grooveshark states, adding that iPhone owners who've already downloaded the app can continue using it.

In January 2010, Universal Music Group filed a still-pending lawsuit against Grooveshark, alleging its servers maintain illegal copies of the label's pre-1972 catalog and claiming Grooveshark's business plan is "based on copyright infringement." Late last year, Grooveshark inked a licensing deal with major label EMI following a similar lawsuit.

For more on the Grooveshark app:
- read this blog entry

Related articles:
App Store adds 'Try Before You Buy' section
Apple bolsters App Store security in wake of developer fraud
Study: Free applications make up 81 percent of App Store downloads
Books now outnumber games in Apple's App Store