For Grooveshark to be in compliance, they would need to pay royalties and restrict distribution to places where those licenses apply. They don't, so they're not.
If that is true, it will get proven in court. I see no Pacer links, so I take it that none of that has been proven.
Personally, I put about as much stock those claims as SCO's claims that we should all write them $699 checks for Linux, but we'll find out whenever the courts rule.
Feel free to supply a Pacer link if the situation changes.
