Global Gaming Factory has acquired buccaneer file-sharing website The Pirate Bay, whose operators were sentenced to fines and jail terms after being convicted of copyright infringement. Both companies are Swedish.

The price is close to $8 million. The fines levied on the four owners of the pirate site totaled $14 million, suggesting that crime does pay but not enough to cover losses. The pirates generated enough public sympathy to win a seat in the Swedish legislature, however.

Eric Pfanner, writing in the New York Times, reports that the new owners hope “to turn it into a legal source of free music, movies and other content, using a novel, untested business model.” The model? “He envisions charging Internet service providers. The Pirate Bay could also generate revenue from advertising.” The new company’s owner assures us there will be no further violation of copyrights: “’It has to be legal from Day 1,’” says Hans Pandeya. “’We are on the stock market; we can’t start playing games.’”

Well, Mr. Pandeya, as the old Swedish proverb goes, lots of luck.

RC

Every Blogger owes a debt of gratitude to newspapers and magazines. This posting relies on original research and reporting performed by the New York Times.