Published Jul 20, 2009Now that Pirate Bay is being sold, the music industry is seeing dollars signs and is reportedly hoping to seize almost half of the $7.8 million that's being paid to purchase the site. The money - awarded to the music industry in an April court case which found the four Pirate Bay operators, Fredrik Neij, Gottfrid Svartholm Warg, Peter Sunde Kolmisoppi and Carl Lundström, guilty of copyright violations - is currently tied up in the sale of the company, which should be finalized in August.
As we reported a couple of weeks ago, the soon-to-be owners, Global Gaming Factory, had released plans on operating the popular downloading site in a more legitimate way, including paying royalties to artists and labels.
However, the purchase cannot be financed until Global Gaming's board of directors okay the deal. After that, though, a spokesman for the International Federation of the Phonographic Industry, a trade group representing the music industry worldwide, says the organization intends to collect the $3.6 million damages award, CNET< reports.
Meanwhile, the founders of Pirate Bay say even though they are selling the company, they won't have direct access to any funds.
"We never had any interest in earning money from the Pirate Bay," Sunde told Swedish newspaper Dagens Nyheter. "We haven't owned the Pirate Bay since the search and seizure in 2006... Those who will get the money, friends in a foreign company, have agreed as a condition to put the money in a foundation for future internet projects."
Sounds a bit sketchy, but let's be certain here: the International Federation of the Phonographic Industry will likely not let any excuses stop the organization in its attempts to collect the $3.6. With record sales dwindling by the day, how else is the music industry going to make any cash unless it's from copyright lawsuits?
In other Pirate Bay news, Global Gaming is preparing for its takeover of the company by hiring former Grokster president Wayne Rosso to help re-launch the more legit version of the file-sharing website, according to Billboard. Remember, Rosso is the same guy who called out EMI last week for cutting some mom and pop record stores out of the direct sales market. Turns out he was a bit premature and the move only affected a handful of stores. Ah, the plot thickens...