
In a slight irony, bands selling music via MySpace's original digital music partner are likely to lose out on monies owed for past sales, because of MySpace's acquisition of said company.
Those with long memories will remember that, long before MySpace set up the MySpace Music company and launched its expanded streaming music service, it had a short lived partnership with a company called Snocap.
Snocap was the company set up by the original Napster founder Shawn Fanning. Originally, it planned to provide the technology that would be required by the licensed P2P file-sharing networks that about seventeen people assumed would come into being after the infamous MGM v Grokster ruling in the US courts forced a number of illegal P2P companies out of business.
But said licensed P2P networks never materialised, mainly because the major labels wouldn't even consider licensing such things. Snocap, therefore, began to dabble in other areas of digital music, its most notable new product being an embeddable download store, which unsigned bands and indie labels could use to provide MP3 sell-through via social network profile pages.
That product received a boost in 2006 when MySpace sanctioned it as the official way for unsigned and independent artists to sell their music on MySpace. Take up wasn't phenomenal, but over time some 110,000 artists started using the Snocap widget.
Meanwhile Snocap started to work with Imeem, providing technology more in the domain of the company's original area of expertise, the 'fingerprinting' stuff that would have been used by licensed P2P networks. Despite its MySpace and Imeem partnerships, though, Snocap faced increasing financial difficulties and early last year was bought out by Imeem.
While all this was happening, MySpace moved away from championing the Snocap download widget and launched its own streaming music service - MySpace Music - forging sell-through partnerships with iTunes and Amazon. Then last week MySpace Music bought Imeem in a bargain basement deal. Which means MySpace now owns the Snocap widget it once championed, right?
Well, no. The reason the Imeem website went offline within hours of the MySpace deal last week is that the News Corp-owned social network didn't buy its rival outright, rather it bought parts of Imeem - it's name, user database and some technology. It didn't take on Imeem's liabilities, which is why the existing Imeem website had to be turned off so quickly - even though Imeem's users profiles and playlists hadn't been transferred over to MySpace Music - so no new licensing liabilities were created.
Among the liabilities not picked up by MySpace, and therefore now likely to remain unpaid, are the accounts of the 110,000 bands who were using the Snocap widget.
According to Wired, Snocap were meant to pay out on a monthly basis whenever sales totalled over $20, but in the last year they hadn't been so good at doing so without prompting. In reality, the sums of money owed to most bands would be nominal; the Wired article mentions one band who managed to get paid shortly before Imeem collapsed who were paid $400. However, for the unsigned bands involved, that sort of money would probably be a much needed bit of revenue.
Of course, there was no obligation on MySpace to takeover Imeem's liabilities, and bosses there would have been fools to do so (God knows what the bigger music rights owners were owed). And it's not MySpace's fault that both Snocap and Imeem ultimately failed, though had they not lost interest in the Snocap widget quite so soon after the big fanfare they gave the launch of their partnership with the company perhaps the sell-through platform would have gained more momentum.
But either way, while MySpace aren't really to blame, the social networking firm has again got itself in a position where it is seen to screw over the very bands that helped it get established in the digital music space in the first place. Which is fun.