SonyBMG insiders have responded to those previously reported stories in the LA Times that suggested the record company was considering a joint venture with P2P network Grokster, just as the Recording Industry Association of America move their legal attack against Grokster style businesses to the Supreme Court.
Insiders at the major say the story stemmed from talks they are involved in with a new company set up by Napster founder Shawn Fanning. The new company, called Snocap, is reportedly looking into ways to create a workable labels-endorsed P2P network, and word has it that the major is interested in getting involved because SonyBMG boss Andrew Lack sees projects like that being developed by Fanning as the most effective way to tackle the continued P2P problem. However, insiders say, all four major labels are considering Snocap's work - SonyBMG is not going out on a limb, like BMG did when it gave financial backing to Napster in the months before its bankruptcy.
The LA Times story was most likely fed by insiders from Grokster based on rumour that Lack is particularly interested in their use of Snocap's technology.