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Pirate Bay Announces Sale to Swedish Company For $7.8 Million 406

paulraps writes "The Pirate Bay is to be bought for $7.8 million by Global Gaming Factory X, a Swedish company specializing in internet café management software, the company has announced. As well as taking over the controversial brand, GGF has also bought Peerialism, a small IT company with roots at Sweden's Royal Institute of Technology, which has developed a new file sharing technology. The acquisitions mean that GGF will be at the heart of 'the international digital distribution market,' allowing it to introduce a new pay model for file sharing." Reader pyzondar adds "However, the press statement also states that the deal will only go through 'if GGF and its Board of Directors can use the asset in a legal and appropriate way.'"
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Pirate Bay Announces Sale to Swedish Company For $7.8 Million

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  • suckers (Score:5, Funny)

    by QuantumG ( 50515 ) * <qg@biodome.org> on Tuesday June 30, 2009 @07:57AM (#28526881) Homepage Journal

    hehe, sure sold 'em that bridge.

    • Re:suckers (Score:5, Funny)

      by tverbeek ( 457094 ) on Tuesday June 30, 2009 @08:23AM (#28527217) Homepage

      However, the press statement also states that the deal will only go through 'if GGF and its Board of Directors can use the asset in a legal and appropriate way.'

      [EmilyLitella]Oh. Sorry. Never mind.[/EmilyLitella]

    • Re: (Score:3, Insightful)

      by geegel ( 1587009 )
      I know that it's just a domain, I know that something better will show up. I even know that in the great scheme of things this is actually a good thing. ... but somehow I can't help feeling sad. It is the end of an era. R.I.P. TPB
      • Re:suckers (Score:5, Insightful)

        by orclevegam ( 940336 ) on Tuesday June 30, 2009 @08:52AM (#28527599) Journal
        Long Live TPB 2.0, whatever they decide to call it. Not to be confused with TPB post buyout which will have a presence and relevance much like that of Napster post buyout, IE, none at all. When will companies learn that just because you bought the name, doesn't mean you've got the people. People don't go to TPB because of the name, they go because it offers something they want, once you stop offering that, then people stop coming, it's so simple even an MBA could figure it out (eventually).
        • Re: (Score:3, Funny)

          by gnick ( 1211984 )

          ...they go because it offers something they want, once you stop offering that, then people stop coming, it's so simple even an MBA could figure it out...

          A single MBA? Probably. Even quickly. An entire board? They need a couple of purchases encouraged by an enthusiastic idiot before they'll figure it out (or go bankrupt in the process.)

          YMMV.

  • by AltGrendel ( 175092 ) <`su.0tixe' `ta' `todhsals-ga'> on Tuesday June 30, 2009 @07:58AM (#28526899) Homepage
    The technology is legal, some of the files shared may not be. That will depend on your local legal code.
    • by amicusNYCL ( 1538833 ) on Tuesday June 30, 2009 @12:37PM (#28531629)

      *Some* of the files *may* not be legal to share. Don't you think that's glossing over the whole thing? The site was specifically set up to track things that are illegal and can't be tracked other places. No one needs a huge site to track Linux ISOs, those are already out there. It's already easy to find them (a Google search [google.com] will do that). The name "Pirate Bay", and the logo of a cassette tape with crossbones, indicates that the original purpose of the site was to search for "pirated" music. Or else why would they choose that name and logo?

      It's fair to say that more than half of the files listed in the Audio, Video, Applications, and Games sections are not legal for distribution in any location that has copyright laws or treaties with the US. But the number of files is not the important statistic, and can't even be calculated. The important statistic, which can be calculated, is which files are actually getting downloaded the most. So, look over the total top 100:

      http://thepiratebay.org/top/all [thepiratebay.org]

      See anything there that's legal to distribute in most jurisdictions? Or how about the top 100 from just the Applications category:

      http://thepiratebay.org/top/300 [thepiratebay.org]

      It's pretty disingenuous to say that "some of the files may not be legal", although that's a true statement. It's much more accurate to say that "most of the files people download are not legal for distribution in most jurisdictions". But saying it like that, and realizing that all of this technology is essentially being used by college kids to download crappy movies, sort of takes the "nobility" out of the whole thing, doesn't it?

  • by Caboosian ( 1096069 ) on Tuesday June 30, 2009 @07:59AM (#28526915)
    The tough sell out. As would I. That fine's gotta get paid somehow.
  • Very, very, very sad. So what do you think the next step will be? Turning TPB into a CDN? Using advertising revenue to pay for files shared? What are your thoughts?
    • Well, my thought (singular) was "Meh. http://www.google.co.uk/search?q=torrent+tracker [google.co.uk] "
    • Re: (Score:3, Interesting)

      by Miros ( 734652 ) *
      I feel like CDNs are almost a dime a dozen at this point, and are typically structured very differently from the way TPB is. I dunno, I feel like this may have been a bad investment for someone, with things like shows on YouTube, Boxee, Hulu, Amazon.COM on-demand, netflix watch instantly, etc, the peer to peer ship may have begun to sail at this point. Not saying it wont still be huge, but when I think of my average non-tech savvy friends, many of them have stopped using torrents all together and have not
  • by cibus ( 670787 ) on Tuesday June 30, 2009 @08:03AM (#28526957)
    On The Pirate Bay blog [thepiratebay.org] the TPB crew gives their side of the story.

    Idealism is not dead: The profits from the sale will go into a foundation that is going to help with projects about freedom of speech, freedom of information and the openess of the nets. I hope everybody will help out in that and realize that this is the best option for all. Don't worry - be happy!
    • It is the best option. It's obvious you can't go toe to toe with the media interest groups right now and TPB had long ago grown too large to stay under the radar any longer. What could they do?

      This is a good way to step out of the frying pan they've landed in, regroup, and, if they're still interested, figure out another way to compete with the interest groups a few years down the line. It may be idealist to think they'll want to spend their entire lives fighting for this cause, but if they really go throu
  • Goodbye TPB (Score:3, Insightful)

    by rodrigoandrade ( 713371 ) on Tuesday June 30, 2009 @08:05AM (#28526969)
    >> 'the international digital distribution market,' allowing it to introduce a new pay model for file sharing."

    So, it'll be Napster 2. Big corp buys out great service for the tech alone and uses it to further corporate greed.

    And here we were thinking the TPB founders were selfless Jedi helping file sharers and making the digital world a better place for all. They SOLD OUT!!!

    TPB was nice while it lasted.
    • Re:Goodbye TPB (Score:4, Insightful)

      by Anonymous Coward on Tuesday June 30, 2009 @08:19AM (#28527153)

      The only people who still think they are selfless Jedi are those who paid no attention to their trial. When they went to court there was tough talk all over the internet, here for sure, about how they would stand up for file sharing. There were all sorts of IANAL assurances that they did nothing wrong and didn't need to hide any of the details of what their site does. The TPB guys were gonna stick it to the copyright holders just like they did in that correspondence they posted on their site.

      But when it came to cases they all claimed they really didn't have anything to do with the site. One guy all he did was keep it up and running by wrenching servers. Another guy was just a spokesman. Nobody stepped up with any RMSesque ramblings about the ethics of copyright. They ran and hid from the truth of it kust like every other internet commando would do if it were his neck on the chopping block.

    • Re: (Score:3, Insightful)

      by Opportunist ( 166417 )

      Supply and demand will win, don't worry.

      The demand for filesharing is still there. Why would it go away? Someone will step up and offer the supply. Maybe as torrents, maybe as something else, we'll see. For a time we'll have a few trackers and a few competing systems, then a new de facto standard will emerge which we will use, they will eventually be selling out, and the whole game starts anew.

      Why do you think it should be different this time compared to Napster's sold&folded?

  • by notseamus ( 1295248 ) on Tuesday June 30, 2009 @08:06AM (#28526981)

    The file sharing community isn't the best known for paying for downloads (although studies have shown that they buy more music/films etc), but if this company starts charging for access to TPB or per download, they'd better make sure that they won't reveal any names or info about downloaders. Otherwise all of their appeal will have evaporated.

    • by dintech ( 998802 ) on Tuesday June 30, 2009 @08:15AM (#28527105)

      Maybe that's a potential business model. Buy the all the data behind TPB and sue all the trackable uploaders/downloaders into oblivion. I wonder how much of $4.7M they could make back using that strategy and with access to that data...

      • But I think that would raise lots of doubt (were the logs planted? Did the IPs change owner? Etc)
      • by notseamus ( 1295248 ) on Tuesday June 30, 2009 @08:55AM (#28527651)

        Either way, surely this is the death of The Pirate Bay. It's followed the pattern of being something underground, to becoming something well known amongst the technically literate, to something known by the populace at large, to being discussed by governments, courts and the media to being absorbed by the corporate world.

        Like social networking sites like Friendster to Myspace which are in decline or are terminal, the internet crowd is fickle, and will move on to the next big thing at the drop of a hat. Nothing is stopping you.

        A comment above from Reddit pointed out that the site has been in ownership for a year now, and that trackers are down to 17 million.

        What's replacing it in some sectors seems to be watching tv/movies online, the gray sites that act like iPlayer that link to movies hosted ni China etc. I know quite a few people that use those regularly, that wouldn't necessarily have used torrents before. And sneaker nets are as alive and well as ever.

        A lot of other people will think like you, and we can expect to see the pirate bay's traffic to fall, and other trackers to rise in the coming weeks. Whether it recovers or not is a different matter.

  • With a millionaire involved, you can bet your bottom dollar that it was all about the money at least in the eyes of one of the four. People who are rich from business tend to want to find more ways to make more money they don't need.

    Enter Carl Lundstrom. Had the money to put up for badly needed servers. Has seen the rise of TPB and sees the $$$. Sinks in some cash for a few servers, sits back and waits then sells out for a whopping profit.

    While it may have originally been done for the spirit that they CLA

  • RIP Piratebay (Score:5, Insightful)

    by elrous0 ( 869638 ) * on Tuesday June 30, 2009 @08:08AM (#28527011)
    Well, there goes the best of the great torrent sites. I'll bet dollars to donuts that this new company attempts to Napsterize the site, turning into a pathetic shell of its former self.
  • by kazade84 ( 1078337 ) on Tuesday June 30, 2009 @08:09AM (#28527023)

    1. Set up a file sharing website with a cool name
    2. Build a domain and brand worth millions
    3. Profit!
    4. Move to another domain
    5. ???
    6. Profit again!

    ??? is probably "GOTO 1"

  • What do you bet TPB puts up geographic walls in the near future? As in, "sorry, this product is not available in your country".

    That seems to be the authorities response to the internet's "route around censorship" philosophy. And it appears to be fairly effective, thus far - as evidenced by many foreign posts on slashdot of users having problems with iTunes, Hulu, or whatever.
  • by gilgoomesh ( 966411 ) on Tuesday June 30, 2009 @08:10AM (#28527043)

    The following comment was made by krs on another site [reddit.com]

    To clarify a bit..

    TPB has been owned by a company for the last years since the raid so nothing there will really change except the names of the owners. The talk about TPB are going to be a pay site is wrong, the CEO that said that does not know what he is talking about.

    Now, the BIG change is that the tracker is going to be outsourced to a new formed company that wont know what they track, just that they connect peers, and the torrent listings will be handed by an other new company that will have torrents but they will not know either content or who is using the torrents. This setup will be practically impossible to take down or find anyone liable to sue.

    The 3d party company services will have APIs, so you can on your blog or whatever have your own small torrent listings just as you now pull in twitter feeds. remember how the twitter design totally havoced the iranian attempts to block it as ppl just used another side that pulled in the feeds and read it there instead? well that goes for torrents and TPB to.

    All in all, this is not the end of the world as some are seeing it but a rather interesting technical improvement.

    And dont worry, not a dime will go to the media industries spectrial prize money what i know of but a really nice fund for doing cool stuff. /krs - co.founder of TPB and PB, not involved in TPB anymore and have no stake in any cash.

    • by debrain ( 29228 ) on Tuesday June 30, 2009 @08:46AM (#28527541) Journal

      Now, the BIG change is that the tracker is going to be outsourced to a new formed company that wont know what they track, just that they connect peers, and the torrent listings will be handed by an other new company that will have torrents but they will not know either content or who is using the torrents. This setup will be practically impossible to take down or find anyone liable to sue.

      The concept of willful blindness [wikipedia.org] may apply as a substitute for intention.

      Quoth the article:

      A famous example of such a defense being denied occurred in In re Aimster Copyright Litigation, 334 F.3d 643 (7th Cir. 2003), in which the defendants argued that their file-swapping technology was designed in such a way that they had no way of monitoring the content of swapped files, and suggested that their inability to monitor the activities of users meant that they could not be contributing to copyright infringement by the users. The court held that this was willful blindness on the defendant's part, and would not constitute a defense to a claim of contributory infringement.

      • by pnuema ( 523776 ) on Tuesday June 30, 2009 @09:26AM (#28528015)
        I'd be concerned - if the 7th circuit wasn't a US court. TPB is not in the US, in case you didn't know.
    • They still have central services that could be taken down. And their 'legal' existences still depends wholly on same law avoidance schema like before.

      And since they go a long way to make sure they can not be liable for providing access to copyrighted shit because they would not know it is there (which they know will be there, hence the blind services), its kinda self defeating as they prove themselves they are 'looking for trouble' and expecting material that they will be liable for, and that they want that

  • by NoNeeeed ( 157503 ) <slash@@@paulleader...co...uk> on Tuesday June 30, 2009 @08:11AM (#28527049)

    This feels a lot like history repeating itself - It's Napster all over again...

    Music industry sues P2P service -> service loses -> service turns legit -> becomes irrelevant -> gets replaced by something better, and less centralized.

    I'm curious what's going to come next, but I suspect this turn of events will spur on some interesting technical developments.

    • I was under the impression that the next big thing in Bittorrent would be the introduction of distributed trackers. Are we there or not yet? Or is it just some wild fantasy of mine?

  • Supernova (Score:4, Insightful)

    by giorgist ( 1208992 ) on Tuesday June 30, 2009 @08:11AM (#28527053)
    Something will pop up in it's place. The idealists are misplaced. The rest will just find a new way, but with the lessons learned.
  • This is the end (Score:3, Insightful)

    by nloop ( 665733 ) on Tuesday June 30, 2009 @08:12AM (#28527071)
    What was the point of going through the court proceedings? Why, money, of course!

    Also, as evidenced by Kazaa, Napster, Suprnova, and I'm sure many others that I didn't personally use, taking a free piracy site (sure, sure, pirate bay has a few legal uses, but lets be honest here) and turning it into an "innovative pay model for sharing" just doesn't work. You're fan base does -not- transfer. Apples fan base, yeah, they buy things, iTunes can work. Jimmy down the street downloading bootlegs? Not buying. GGF just wasted 60 million kroner.
    • Re:This is the end (Score:4, Insightful)

      by Aladrin ( 926209 ) on Tuesday June 30, 2009 @08:18AM (#28527135)

      Kazaa and Napster had their own protocols to sell, at least. As far as I know, TPB doesn't write any software, they just maintain it and have a website to go with it. Buying TPB doesn't get this company anything that they couldn't just get for free, except a little knowledge... And they could get that a lot cheaper than $7.8mil.

  • TPB blog (Score:4, Informative)

    by migla ( 1099771 ) on Tuesday June 30, 2009 @08:16AM (#28527115)

    "A lot of people are worried. We're not and you shouldn't be either!":

    http://thepiratebay.org/blog [thepiratebay.org]

  • So is TPB going the way of the Napster? Buy them out and try to turn them into some legitimate website?

  • VPN? (Score:5, Interesting)

    by L4t3r4lu5 ( 1216702 ) on Tuesday June 30, 2009 @08:20AM (#28527175)
    What's to happen regarding the IPREDator VPN service?
  • by nloop ( 665733 ) on Tuesday June 30, 2009 @08:20AM (#28527179)
    Wow, having your political party's idealistic figurehead be bought by an internet cafe if kind of a kick in the balls, huh? Does GGF now get a seat in their parliament?
  • What a waste of money. You can download TPB from bittorrent or any p2p share for free!

  • by Jugalator ( 259273 ) on Tuesday June 30, 2009 @08:38AM (#28527399) Journal

    The Swedish news site Realtid.se is now running an article that make this sound less than promising, even if you wasn't bothered by the concept presented in this (Slashdot) article.

    Please excuse the Google Translate machine translation, but it should still be readable:
    http://translate.google.se/translate?js=n&prev=_t&hl=sv&ie=UTF-8&u=http%3A%2F%2Frealtid.se%2FArticlePages%2F200906%2F30%2F20090630101501_Realtid980%2F20090630101501_Realtid980.dbp.asp&sl=sv&tl=en&history_state0= [google.se]

  • by lacoronus ( 1418813 ) on Tuesday June 30, 2009 @09:04AM (#28527743)

    From the press release:

    Completion of the acquisitions are primarily subject to GGF obtaining financing for the acquisition

    So to summarize: they're buying a company with unknown business model and unknown future legal status, for money they don't have.

    I don't see that working out. Usually you at least make sure the seller has something to sell, and the buyer has the ability to buy, before you announce a sale. This is just fantasy so far.

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