Page last updated at 11:33 GMT, Wednesday, 1 July 2009 12:33 UK

Cash for Pirate Bay file-sharers

By Daniel Emery
Technology reporter, BBC News

Pirate bay logo, AFP/Getty
The Pirate Bay's new owners say file-sharing will be encouraged

The new owners of file-sharing website The Pirate Bay say users will be paid for sharing files.

Global Gaming Factory (GGF) paid 60m kronor (£4.7m) to take over the site.

In an exclusive interview with the BBC, GGF's Hans Pandeya said that the only way to beat illegal file-sharing was to make something more attractive.

"We are going to set up a system where the file-sharer actually makes money," he said.

According to Mr Pandeya, GGF's chief executive, the business model for The Pirate Bay would be that it continued to be a file-sharing site. The only difference - at least in terms of content - would be that the files would be hosted legally, rather than stolen from copyright holders.

"We're a listed company so everything we do has to be legal; content providers need to be paid and have their wishes and demands met," he said.

Freebie beater

Mr Pandeya said that one of the biggest hurdles in overcoming illegal file-sharing was that there was zero cost to the users, while legitimate sites required users to pay for content. The only way to make something more attractive than free was to pay users to share files.

"More than half of all internet traffic is file sharing and P2P [peer-to-peer] traffic and buying Pirate Bay gives us one of the biggest sources of traffic.

"We can then use this massive network of file-sharers to help [internet service providers] reduce overload.

"Let's say a popular song comes out. Rather than a million downloads from a site - which would cause a considerable strain on that ISP - we can take that song and put it out on P2P.

"The copyright holder still gets paid, the users still get their file, the ISP doesn't have a million people all grabbing a file and - for the users who share that song - a payment for putting that file on the P2P network."

Mr Pandeya said that while they would be paying content providers and file sharers, there was money to be made from helping ISPs cope with overload.

"We've been working with ISPs for over a year and we can cut their costs - when the system becomes overloaded - by 90%.

"All ISPs have this problem and it is one we can fix," he said.

Computer grid

The company is also looking at harnessing the storage capacity and processing power of the file-sharing community, creating a powerful grid of P2P-linked computers.

"We're talking about next-gen file sharing so you can create revenue from storage and internet traffic optimisation," he said.

However, GGF said that the technology to drive this was still in its infancy.

"This technology is new. For now, we're outlining our intentions and asking users to have faith," said Mr Pandeya



Print Sponsor


SEE ALSO
Pirate Bay starts video streaming
29 Jun 09 |  Technology
Pirate Bay retrial call rejected
26 Jun 09 |  Technology
Court jails Pirate Bay founders
17 Apr 09 |  Technology
Q&A: Pirate Bay verdict
17 Apr 09 |  Business
How The Pirate Bay sailed into infamy
16 Feb 09 |  Technology

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific