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Music execs put pressure on Pirate Bay owner

Greg Sandoval CNET News

Published: 07 Aug 2009 16:53 BST

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Music industry executives in Europe are pressuring Global Gaming Factory X (GGF), the company that intends to buy the Pirate Bay, to turn over any money it pays to acquire the site to them.

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

This past spring, a Swedish court found the website's co-founders — Peter Sunde Kolmisoppi, Fredrik Neij and Gottfrid Svartholm Warg — along with Carl Lundström guilty of having made 33 copyright-protected files accessible for illegal file-sharing via the Piratebay.org website. The court sentenced them to a year in jail and ordered them to pay $3.6m (£2.2m) in damages. However, Kolmisoppi maintains that the co-founders have not owned the site since 2006.

Last month, ZDNet UK reported that the IFPI planned to intercept any money GGF 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 did not 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 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.

Credit: Labels pressure Global Gaming for Pirate Bay money from CNET News

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