Spotify is 100% licensed. AFAIK, Grooveshark is more like Napster in that it's a free-for-all with user uploaded content, though they have worked out deals with some of the record companies.

I personally like grooveshark, because it literally has everyone song I want.

That's a pretty good sign that it's not really legal.

Sad that that's a good indicator, still, no?

Spotify also started out with a lot of unlicensed content before they came clean in early 2009: http://www.spotify.com/uk/blog/archives/2009/01/28/some-impo...

Right but they solved that problem in 2009. It's 2011 and Grooveshark is still mostly pirated content.

As far as I know, barely anyone use Grooveshark in Sweden while practically all my (University) friends use Spotify. Doesn't Grooveshark have some quite dodgy habits when it comes to paying the artists/using legit music files? Or was that some other music streaming service?

If nothing else Spotify has received a lot of good press in Sweden simply because it is Swedish. Patriotism :) And this was a Swedish study after all.