Filed in archive Free and Legal Files by Marc on January 17, 2006

There is one less company polluting P2P users. Loudeye has closed its Overpeer division, which it bought less than two years ago in March 2004. The acquistion started strongly as the company announced 16 P2P contracts within a few months worth several million dollars.

Interdiction is the practice of flooding P2P networks with fake files to protect copyrighted content. Users download the spoofed file instead of the copyrighted file they think they're getting. I had written here previously about Over peer vigilantism.

No specific reason has been given for closing the operation. Possible factors include:
> Increased competition
> A smaller market. Bit torrent is a popular video network. It works differently and requires different protection techniques.
> Limited efficacy. Interdiction doesn't prevent downloading unauthorized downloads. It just makes them harder to find.

Related Entries:

who said there are no exits? - 05 October 2003
Somebody sue Loudeye, please! - 05 January 2005
Loudeye settles with Altnet - 18 May 2006
Digital Music: Interoperability is Public Necessity, Not Pol... - 14 July 2006
Nokia Gets Loudeye, Aiming at Direct Music Sales - 08 August 2006

« Interview with Mininova | Main | Digital music grew in 200... »

Permalink: Loudeye exits P2P interdiction

Tags: loudeye overpeer

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Response from: Digital Music - The Future

Nokis is buying Loudeye for $60 million. Loudeye is a major music distributor. The company licenses music from the major recording labels and operates branded Internet storefronts for companies like MSN and Coca-Cola. With Loudeye, Nokia will be able t...