Pirate Bay File-Sharing Site Sold

STOCKHOLM: The Pirate Bay, the popular file-sharing website whose owners were recently convicted of copyright infringement, is being acquired by the Swedish online gaming group Global Gaming Factory X (GGF).

GGF is acquiring Pirate Bay as well as the file-sharing technology developer Peerialism. It intends to relaunch Pirate Bay as a legitimate site that will pay copyright fees to content owners. GGF takes control of Pirate Bay at the closing of the transaction, expected to occur in August. The company is shelling out 60 million SEK for Pirate Bay, including at least 30 million SEK in cash. The balance will be made up of GGF shares. It is spending 100 million SEK for Peerialism.

"We would like to introduce models which entail that content providers and copyright owners get paid for content that is downloaded via the site," said Hans Pandeya, the CEO of GGF. ”The Pirate Bay is a site that is among the top 100 most visited Internet sites in the world. However, in order to live on, The Pirate Bay requires a new business model, which satisfies the requirements and needs of all parties, content providers, broadband operators, end users, and the judiciary. Content creators and providers need to control their content and get paid for it. File sharers ́need faster downloads and better quality."

He continued: “As a result of the acquisitions of The Pirate Bay and Peerialism, GGF will have a strategic position in the international digital distribution market. File sharing traffic is estimated to account for more than half of today’s global Internet traffic. The Pirate Bay has a global brand and holds a key position with over 20 million visitors and over one billion page views per month."

In April, the current owners of The Pirate Bay were convicted by a Swedish court for copyright infringement. Sentenced to a year in prison, they were also ordered to pay damages of 30 million SEK to the movie and music industries.