The two most important questions right now for the millions of users who use The Piratebay are these two: Who are Global Gaming Factory X and what are their intentions with the website. According to the company website “Global Gaming Factory X AB has the biggest network of internet cafés and gaming centers in the world and provides advertisers, software publishers and service providers with an unprecedented access to the large group of tourists and the large gamer community that visit these centers”.

Neither the new owners nor the Piratebay administrators revealed a lot about the changes that are about to happen to the website and business model. The only outlook can be found in the full press release:

“We would like to introduce models which entail that content providers and copyright owners get paid for content that is downloaded via the site.”

Paying the copyright owners for content that is downloaded via the site (which actually are only torrent files and not copyrighted content) can mean different things. They could share advertising revenue with copyright holders which would probably be the only revenue sharing model that would not have a huge impact on visitor numbers. It would surely be different if they would roll out a subscription based model.

We keep you updated on how things evolve from here. If you have any thoughts on the issue post a comment so that we can discuss the matter.

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Today, TechCrunch ran the follow up story citing a second source and offering some clarification why the Last.fm staff members denied the leak. According to the story it was CBS, not Last.fm directly, that leaked the data dump to the RIAA, or as is suggested one of the music labels.

CBS seems to have given in to the demand because of fear that the streaming rates could be negatively impacted if they did not.

We believe CBS lied to us when they denied sending the data to the RIAA, and that they subsequently asked us to attribute the quote to Last.fm to make the statement defensible. Last.fm’s denials were strictly speaking correct, but they ignored the underlying truth of the situation, that their parent company supplied user data to the RIAA, and that the data could possibly be used in civil and criminal actions against those users. We believe that the outrage they aimed at us for reporting the story, which was materially correct, should have been aimed at CBS instead. But Last.fm never spoke publicly of the real facts of the story.

If data has been leaked – and the article speaks of IP addresses and usage data – then this could very well be a privacy disaster for Last.fm and CBS.

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