Without commenting on whether I think "gutsy" is good or accurate in this instance, it's worth saying that copyright is a civil issue, not a criminal issue. AFAIK, the people at Grooveshark haven't been threatening to break anyone's kneecaps...
That's not true at all. Copyright infringement is a criminal issue exactly in cases where it's done with commercial intent, and not just in the USA. It predates both music file sharing and the commercial, public Internet.
