Nov 1, 2004 • 1 min read

SonyBMG reportedly in business with Grokster

SonyBMG is reportedly working with P2P network Grokster on a download platform called Mashboxxx, a move that could complicate the RIAA's Supreme Court appeal.

SonyBMG are reportedly going into business with P2P network Grokster to develop a new download platform called Mashboxxx. Details of the joint venture are yet to be confirmed, but early indications suggest it will allow music fans to download free promotional versions of songs, which they can then turn into full versions by paying a small fee.

If true, the joint venture could prove controversial given the existing relationship between the major record labels and P2P companies like Grokster. The Recording Industry Association of America are due back at the Supreme Court on 8 Nov to appeal a previous court decision that said Grokster, and fellow P2P company Streamcast, were not liable for the copyright infringement conducted via their networks. Having one of their members in business with Grokster might complicate those proceedings somewhat.

The deal would be reminiscent of BMG's attempts to forge a joint venture with the old Napster back in 2000. While their fellow major labels were pursuing the legendary P2P service through the courts, BMG invested large sums of money in the company in a bid to find a legal P2P business model. Of course Napster was forced into bankruptcy before any such model could be found and BMG found itself being sued by the other labels over allegations they were liable for Napster's copyright infringements.

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