August 6, 2009 2:39 PM PDT

Labels pressure Global Gaming for Pirate Bay money

by Greg Sandoval
  • Font size
  • Print
  • 15 comments

Music industry executives in Europe have begun pressuring Global Gaming Factor, the company that intends to buy The Pirate Bay, to turn over to them any money it pays to acquire the site.

Jo Oliver, the general counsel for the International Federation of the Phonographic Industry (IFPI), wrote Hans Pandeya, Global Gaming's CEO, on July 24. Oliver told Pandeya that the group will ask authorities in Sweden to "issue an order prohibiting Global Gaming from paying the purchase sum" to the founders of The Pirate Bay. Oliver added that copyright owners will also ask the government require Global Gaming to turn over information about the acquisition should it go through.

In the spring, a Swedish court found the Web site's co-founders--Peter Sunde Kolmisoppi, Fredrik Neij, and Gottfrid Svartholm Warg--along with Carl Lundstr?m guilty of having made 33 copyright-protected files accessible for illegal file sharing via the Piratebay.org Web site. The court sentenced them to a year in jail and ordered them to pay $3.6 million in damages. But Sunde Kolmisoppi maintains that the co-founders haven't owned The Pirate Bay since 2006.

Last month, CNET News reported that the IFPI planned to intercept any money Global Gaming pays to acquire The Pirate Bay. Copyright owners from the film and music industry allege that Reservella, the holding company that is the listed owner of The Pirate Bay, is controlled by Neij.

The IFPI also didn't mince words about what would happen if the new Pirate Bay continued to help users download pirated music.

"We need to warn you that if GGF takes responsibility for The Pirate Bay service in its current form, or if GGF operates The Pirate Bay in any way in violation of applicable copyright law, we will be forced to take legal action."

Oliver told Pandeya that he could count IFPI as a friend if he is successful in licensing music from the top record companies.

"We hope that your discussions with the rights holders reach a mutually acceptable resolution," Oliver wrote. "IFPI would welcome and give strong support to the launch of a new online service."

Pandeya has said that under his control The Pirate Bay will morph into a legal service that offers content in exchange for users' computer bandwidth and hard drive space.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
Recent posts from Digital Media
Google makes its home page a Chrome page
Police to put drunk drivers' names on Twitter
How tech touched the '00s
Flixster/Rotten Tomatoes/MySpace mystery solved
Facebook COO nominated to Disney board
Using Facebook and Twitter safely
Average Net user now online 13 hours per week
A year out, where's RIAA's promised ISP help?
Add a Comment (Log in or register) (15 Comments)
  • prev
  • 1
  • next
by Random_Walk August 6, 2009 3:15 PM PDT
Depends on how it gets bought... if GGF buys their assets (servers, trademarks, et. al), the IFPI can't do squat about it directly. Even if GGF buys the company as a whole, then the IFPI has to first put in a request for lien I believe, just like anywhere else in the civilized world. IF they've already done that, then why would bother with the public pronouncements?

IOW, the current (not new) owners of TPB are still required to pay up, not whoever purchases TPB's goods without buying the corporate charter.
Reply to this comment
by mbenedict August 7, 2009 6:37 AM PDT
Um, hello, Law 101... ever heard of 'garnishment' aka 'attachment of earnings'? No 'lien' is necessary, and whether GGF buys assets or buys the "corporate charter" [sic] is utterly irrelevant.

"A garnishment is a means of collecting a monetary judgment against a defendant by ordering a third party (the garnishee) to pay money, otherwise owed to the defendant, directly to the plaintiff." -- Wikipedia
by Random_Walk August 7, 2009 8:38 AM PDT
"ever heard of 'garnishment' aka 'attachment of earnings'?"

Yep - but they still have to apply for it, and if they already had it, they wouldn't need to squawk about it. QED, eh?
by Sausagebiscuit August 7, 2009 12:30 PM PDT
Which country's laws are we talking about? Are you guys experts in that countries laws?
by Random_Walk August 7, 2009 1:24 PM PDT
My argument really doesn't rely on any specific laws - just a simple concept: most civilized countries do not allow one private entity to steal from another; there's a process involved.

If there's a process and the IFPI followed it, then the last thing they'd want to do is scare off a potential payoff by publicly demanding money from the potential payor, correct? Since they're stammering out a demand for money, odds are very good that either there is no process in place that suits them, or that they were turned down.
by mbenedict August 7, 2009 6:56 PM PDT
Uh, wrong again, Penguinisto.

First, you wrote that "if GGF buys their assets (servers, trademarks, et. al), the IFPI can't do squat about it directly [...] the current (not new) owners of TPB are still required to pay up, not whoever purchases TPB's goods without buying the corporate charter." Total non-sense!! With the courts direction purchasers of any assets from a defendant can be compelled to pay the plaintiffs (IFPI in this case) directly.

Second, you're incredibly naive if you actually believe GGF wants to complete TPB's acquisition. "Naive" might be too kind of a word. Global Gaming is a puny company with puny financial resources. They're only "proposing" to buy TPB as a publicity stunt, with little intention of actually closing the deal. It's cheap marketing for them, to impress teenage Swedish kids who frequent their Internet cafes. Either the acquisition will fall apart completely or GGF will end up buying just TPB's name (trademark) for a nominal sum.

Third, IFPI isn't stupid. They're making public pronouncements precisely because they're up to GGF's publicity stunt. So IFPI is doing some saber-rattling on their own. They want TPB dead, not living on as some GGF marketing hype. Actually collecting a measly $3.6 million in damages means less to them than making TPB's demise as an example to other torrent or file-sharing sites.
by jbcahill August 6, 2009 3:38 PM PDT
Tell IFPI to screw off.
Reply to this comment
by baconstang August 6, 2009 3:50 PM PDT
The founders shouldn't get a single Euro.
Reply to this comment
by sodapop2k9 August 6, 2009 4:00 PM PDT
What kinda of crazy law is this that you can pass the penalties of from one entity to another!? Burn down the disco!
Reply to this comment
by pithenumber August 6, 2009 4:10 PM PDT
there goes the piratebay we know and love
and its founders might not get the money they deserved

@people who think tpb is against the law
the stupid DMCA doesn't exist over there
Reply to this comment
by monkeyfun14 August 6, 2009 6:28 PM PDT
Unethical nonetheless
by Sausagebiscuit August 7, 2009 12:30 PM PDT
To each his own. Nonetheless.
by Michichael August 7, 2009 8:14 AM PDT
So... the MPAA is trying to enforce a decision that is in appeals due to their biased judge via garnishment... I'm sorry, is it legal to attempt to enforce a ruling that is in appeals? It's not final, therefor the ruling isn't enforceable, as far as I know. I'm frankly shocked the MPAA hasn't pissed off the mafia... oh wait... they /are/ a mafia.
Reply to this comment
by cosuna August 7, 2009 3:11 PM PDT
It's not the MPAA or the RIAA... it's their evil twin the IFPI...

Then again, I think the Pirate Bay battle is just another Pirric battle by the Movie industry, just like the one the RIAA had with Napster, that is the won, but lost at the end (to iTunes).
by pentest August 7, 2009 6:10 PM PDT
Guess what? There is no difference between the RIAA and IFPI, they have the same members and policies. IFPI is simply the international RIAA.
(15 Comments)
  • prev
  • 1
  • next
advertisement

15 sites that went kaput in 2009

Web sites launch all the time, but they also shut their doors. We highlight 15 that bit the dust this year.

Top 10 news stories of the decade

Let the debate begin: Was the iPhone more important than iTunes? Was anything bigger than Google finding a great business model? CNET offers its list of the 10 most important stories of the '00s.

About Digital Media

The Web is now the place to go for news and entertainment. Look here for the latest on blogs, music, video, virtual worlds, social networking and more.

Add this feed to your online news reader

Digital Media topics

advertisement
advertisement

Inside CNET News

Scroll Left Scroll Right