The Vergecast - Version History: LimeWire

Episode Date: November 16, 2025

You wouldn't steal a car. You wouldn't steal a handbag. But plenty of people used LimeWire and other file sharing services to share music, movies and more. If Napster was the beginning of the piracy s...tory, LimeWire may have been the final chapter. Nilay Patel and Sarah Jeong join David Pierce to chart the history of LimeWire and the legal cases that shaped U.S. copyright law and the lives of college students taxing the bandwidth of their dormitory internet. If you like the show, ⁠⁠subscribe to the Version History feed⁠⁠ to make sure you get every new episode.⁠ Subscribe to The Verge⁠ for unlimited access to ⁠theverge.com⁠, subscriber-exclusive newsletters, and our ⁠ad-free podcast feed⁠. We love hearing from you! Email your questions and thoughts to ⁠vergecast@theverge.com⁠ or call us at 866-VERGE11. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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Starting point is 00:00:00 Welcome to the Vergecast. I'm your friend David Pierce, and you're about to hear another episode of our new show, version history. Before we get into it, one reminder, send us all of your feedback about the show, everything you like, everything you don't like, everything we should do differently,
Starting point is 00:00:11 and most importantly, go subscribe to version history, wherever you get podcasts, because it will not be on this feed forever. Let's get into it. It's the year 2000, and I have an app to tell you about it. It's this one app that you've downloaded your computer,
Starting point is 00:00:24 and you can access every song that has ever been recorded anywhere, all without... hang a dime. No, to be clear, I'm not talking about Napster. Napster is in the middle of being sued absolutely out of existence. I'm talking about an app called LimeWire. And LimeWire is going to fix what went wrong for Napster. From the verge of Vox Media, this is version history, a show about the best and worst and strangest and most important products in tech history. And today, we are talking about the very, very end of FileShare. Support for the
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Starting point is 00:02:05 Tap in with us. All right, we're back. Let's pirate some stuff. Neil Patel is here Eli. Sarah John, also here. Hi. Let's just talk about our own experiences here first. We've all pirated a song or two in our day.
Starting point is 00:02:19 Were you, where? I feel like there's like the Napster kids, there's the Kazah kids, there's the Limewire kids, and then there's like the kids who don't know. Is that like a fair delineation of the generations, would you say? No, the kids who don't know are just the Torin kids. Oh, that's fair. Well, there's the Torin kids
Starting point is 00:02:37 and then there's like the Spotify kids. And they're the who don't know. But you're right, the Torrent kids belong in there right at the end. Yeah. But they're still around. I wouldn't discount it. I wouldn't call them kids anymore. Yeah. But yeah, like the torrent parents at this point, really. Are Torrent adults like Disney adults? Like you kind of grow up and a lot of it, but you didn't and that's nice. Yeah. To be clear, David, I've never pirated anything in my life. Well, sure. But yes, I know quite a lot about all of these programs. Like purely academically, of course. Well, right. Yeah. You study them for journalism. That's beautiful. So what were you? What was? your era? My era was Morpheus, it was like soul seek, it was I kind of remember Limeware, but it wasn't really there so much towards the end. And then it was like DC++ was the
Starting point is 00:03:21 really big one. By the time I hit hit college. Yeah. Yeah. Yeah. Neil, it was yours. I'm gonna just sound like an ancient wizard. You're 71 years old. We should just say that right at the time. There's a reasonable case to be made that the
Starting point is 00:03:37 entire verge exists. because of software piracy in Napster and Livewire? Because that's what radicalized me in college. Like, I am the kid who was a freshman in college writing furious, like sent to the entire school emails addressed to Greg Jackson, the director of IT services about traffic shaping the network so we couldn't run Napster. That was me. I feel bad for Director Jackson.
Starting point is 00:04:05 I don't know what I don't know what's become of him, but he received a lot of emails from me. And that's, it just sent me to law school because I was fully righteous about it. I didn't know what I was doing in those emails. I want to be clear. I was a site in case law that I did no idea even what was happening.
Starting point is 00:04:22 And then I ended up at the end of all that working a tiny law firm in Chicago defending college kids who were getting sued by the recording industry for using Kazah. Okay. And that was so soul-crushing that I turned to blogging. But you were, so you were,
Starting point is 00:04:38 You were a baby lawyer in the Cazaa universe. Yeah. You, okay. Wow, that's old. You're old. It's not great. It's not a, it's, like, now it's, at a time, it was very cool and like a, I had a tip job. And now it's like, oh, you're, like, are you okay?
Starting point is 00:04:56 How did you do in those? Let's talk about statins, Dr. Patel. Like, it's bad. Were you, Sarah, just, were you, like, you were studying some of the other side of this stuff while you were also hiring like a maniac? Like, part of, I mean, part of why I went to law school is the same reason as, as Neela. I was like, this was also a radicalizing moment for me. Like, I was like, this doesn't make any sense. Like, the internet is infinitely replicable. Information is now infinitely replicable. Why is it that we're sort of stuck in, uh, why are we bogged down by copyright law? This doesn't make any sense to me. And then I went to school. I studied a whole bunch of shit and including copyright. Um, and then I came out of it for various reasons, a broken person. person and now I'm in digital media. Like, it's a real similar, it's a real similar trajectory. My, my radicalizing moment was not defending kids with Kazat, but there was definitely,
Starting point is 00:05:51 there was a lawsuit I saw where I was just like, I don't like this. I don't, I don't like any of this. It's a long, it's a long story. And I'll tell you about that lawsuit another time. Okay. But like, yeah, there's like, it is when you see sort of how copyright, especially when you see the law interact with technology and interact with the internet. There's like a story about humanity to be told there that like, yeah, the sort of for a certain
Starting point is 00:06:15 kind of brain, the obvious pivot is journalism. So, okay, so let's like anchor ourselves in time here a little bit because the linewire story sort of starts in 2000, which is if I'm doing my timeline math correctly here is while the Napster fight is ongoing, right? Is it like we're still in the. middle of sort of the first version of this fight. What was it? Napster was 98, 97, 98, something like that. In there, 99.
Starting point is 00:06:43 Yeah, I think like one of the subnal cases is in 99. Like, yeah, one of the decisions comes down in 99. Yeah, so Napster goes away, basically, loses this thing, goes away. And, yeah, I mean, fair. You can, yeah, Napster never really went away, but it stopped being Napster. And then in its wake come just a million other surfaces. again, with names like the ones you mentioned, we get the Kazaz of the world and Morpheus
Starting point is 00:07:11 and like a hundred others that I had forgotten that I used every single one of is a thing that I discovered. I have used all of these services at one point or another, all to download like Backstreet Boys songs, but that's neither here nor there. But so Limeware ended up being like by a mile the most popular of them, which I did not realize until researching for this episode. But anyway, so back to the beginning.
Starting point is 00:07:32 The story starts in 2000 with this guy named Mark. Gordon, who is a Wall Street guy. He, like, ran a hedge fund. He was a high-speed trading guy. He ran a thing called, I think it was called, like, the Lyme brokerage that was doing high-speed trading. And then, like, when Napster goes away, pivots to file sharing, which is odd. But he's, like, not a music guy. He's a Wall Street guy. He's a hedge fund dude. At the same time, he's also working on, like, open-source government software. He was a big advocate for more bike-line. in New York City. Like, sure, big ups to Mark. Ended up having a weird dalliance with RFK later. Like, we don't need to talk about Mark Gorton too much. Wait. Romantic?
Starting point is 00:08:20 Like, were they sending each other text messages? We're not sending each other text messages. We're going to cut that out. That one's just for us. I mean, I censored myself in the same section. And I went wrong from it. He raised some money for RFK. We don't need to talk too much about Mark Gordon.
Starting point is 00:08:45 There was LimeWire, which was a file sharing service. It looked like all the other file sharing services. It was for file sharing. But at the very beginning, he also had this idea about this thing called LimeWire Pro. And their big idea was you could pay $22 every six months for like a nebulous set of extra features. They said it was like better search results. you'd get faster downloads. And the pitch was like, we are going to like legitimize this project and make some money off of it.
Starting point is 00:09:14 You don't see why the high-speed trading guy was drawn to file sharing? No, connect that for me. I mean, all Wall Street is is buying low and selling high and then treating things like commodities and saying, I will take this for free and sell it for some money and make the exchange. I mean, if you just look at it that way, right? Like, I'm going to take this stuff that's free. And then at some level, every transaction I will take a cut. And if I can be the one to move it around, that's there's some value.
Starting point is 00:09:44 Yeah. That kind of makes sense. Like, there is a moment. I think it's important to remember at this time the music industry was riding as high as it has ever written in history. It was just making more money than ever, than maybe it ever will again, but then it ever had passed. The CD was out, you know, it's like all these huge bands were just being, like, created. There's that one guy in Orlando that was just like, I make boy bands. And he just like manufactured them all in absolute cultural dominance.
Starting point is 00:10:12 And so taking from them did not feel bad in a way that Spotify's relationships with artists today feels bad. Yeah, I think this is the original like Wall Street bets to Dogecoin pivot, right? Like where it's like, yeah, yeah, this is this is that sort of there is a weird analogy between the financial system and file sharing. Like, it's very, yeah. Yeah, if I can just peel off some pennies on the back of this machine, I'll be rich and you'll be fine. It's right there. Did that feeling increase after Napster, the sense of, like, the music industry and the RAA is like the big bad guy that we screw them, we can steal it. Right, right.
Starting point is 00:10:51 Like, they just did the worst thing they could do. They were successful, but they were like, yeah, we're the bad guys. Yeah, I actually, like, disagree with you about that narrative. I mean, yes, they turned into the bad guys for a certain. segment like for you, for me, like for a certain generation. And then like there's a cutoff where suddenly people like, oh, yeah, I feel kind of bad about stealing from artists. It's like it actually, I think the propaganda worked. Like, I think it worked. I think that we all talk about file sharing now as though it's a bad thing and we know it's a bad thing. And like I think that
Starting point is 00:11:22 the RIA succeeded in turning file sharing into something that you're not supposed to admit you do. Like it. Even in the sense that like as you're sitting there doing it, you sort of know you're doing something you shouldn't. It's like you're smoking weed, like, like, you know, at the back of your church parking lot or whatever, right? Like, it's like, it's a, it's like, that's what makes it cool. Right. That's what makes it cool, but it's also like something you can't, you hide. It's something you hide, even though you know everyone does it. And before then, people weren't, people were just doing it. And you didn't care. You didn't care about talking about it. Like, I don't know, like, if you like look up what were the most popular file sharing programs, right, on, on Reddit,
Starting point is 00:12:01 like you'll see a thread from two years ago where the very top response is nice try FBI right there's a it's and and I like I don't think that we'd be talking about that like in 2000 or whatever we just say oh yeah I like I make mixtapes for my girlfriend like right right well and I think this is this is part of why I find lime wire so interesting is like from the very beginning I think they're trying to figure out a way to kind of have their cake and it to on that front where they're like, okay, we understand what peer-to-peer file sharing is used for. And it's certainly true that there are lots of things you can do on a service like this that aren't share music, but that's what everybody does. So they come up with this idea. I found
Starting point is 00:12:43 this great quote from a New York Times story in 2010 where it's talking, he's sort of reminiscing at the end of LimeWire about LimeWire. And he says, this is just a line from this story. Back in 2000, when Mr. Gorton jumped into the peer-to-peer network business with LimeWire, He envisioned it growing into a popular service for commerce, he said. Users could search the network for a new television set, for example, and get results from retailers across the country. Like, A, what? How? He's just describing the internet.
Starting point is 00:13:12 It doesn't make any sense. But again, there's like, there is this clear idea here that if we can figure out how to make this thing a business, it will sort of definitionally be legitimate. And I just find that so fascinating. And he's like, we can do all of this stuff on top of piracy. but as long as we do it in a way that feels legitimate and upstanding and makes everybody money, A, I'm going to get rich, and B, people are going to take it seriously. And it like almost worked. And it's just so fascinating.
Starting point is 00:13:41 So anyway, so the, it's a Java app that you had to like, you had to have a separate installer for it. It was a mess. This app was like, not great, but it was better than everything else. This is my main memory of LimeWire. It's like we came out of Napster and we came out of Kazah. And then all of a sudden there were like nice looking file sharing apps for the first time ever. And they weren't good. But they didn't have a million ads or at least, you know, they had half a million ads instead of a million ads.
Starting point is 00:14:09 They were a little faster. They were a little easier to use. And they had like it looked like it looked at it. Which like no one would ever say that about that first run of file sharing apps. I recall Napster being very clean. It was very straightforward. But it was very, it was like a file system. Like it just didn't.
Starting point is 00:14:25 Which is all I wanted. Sure. wanted to look at your file system and take the music that you had. Right. And for that, like, it worked fine. But I think we're also at the point now where, like, this stuff is so unbelievably mainstream, like, everyone is doing it. But I found a stat that said at some point, I've seen numbers between 16% and 18% of computers ran limewire at one point. Like, that's, that's there. It was, it was everywhere. And a lot of that is because, like, a lot of people had computers were, like, college students who were pirating music. And like, but still, it was like, this stuff was so unbelievably mainstream that they were. starting to think about it, like, properly as a product. But also, our buddy, Mark Gordon, did a bunch of deeply shady stuff to try and make money. For a long time, for I think, like four or five years, if you downloaded LymeWire, you also downloaded an app called Lyme Shop. And LymeShop was one of those things that would monitor your online purchases and insert itself as the affiliate
Starting point is 00:15:26 code and just steal the money for LymeWire. It's just straight up like there was the big honey scandal with all the creators. It was just that two decades earlier. Truly a pioneer. Seriously. And it was like this, they just straight up installed official spyware on your computer every time you downloaded it. And if you uninstalled LimeWire, you didn't uninstall lime shop. Nita, you sent me a C-NET review right before we started recording this of, I think it was called LimeWire Basic, which came out a few years later.
Starting point is 00:15:56 And one of the things they're very happy about is that we, when you send me, you sent me a C-net review right before we, you know, when you uninstall lime wire, only 15 megabytes of stuff is left on your computer, which just says something about like what we expected from a file sharing. It's also wild, right? We're talking at a point in time when it's like the mainstream tech websites and publications are like, we will review a file sharing app. Yeah. Like no one today is reviewing BitTorring clients.
Starting point is 00:16:19 It's just not happening that way anymore. We should start. We should. But yeah, it was like this stuff was, this was the good version of this. Which to some extent, like the bar was so low. Yeah. I want to point out that in particular for Mac users, but also just as a whole product,
Starting point is 00:16:37 LimeWire was junk. Like top to bottom junk. Oh, yeah. They didn't even invent the underlying protocol. They were hijacking an open source protocol called Nutella, which was spelled with the G-N-U, because that's the name of the license. And so it's called Nutella.
Starting point is 00:16:55 And as I ran on this open protocol, and the app was like a garbage Java app that ran like dog shit on basically every computer. But it looked nice. It didn't. Like this is the time for Mac users when apps that don't look like Mac apps are like just not allowed. Right?
Starting point is 00:17:16 There's like religious fervor about Mac apps looking like Mac apps on, you know, an OS or Aqua, whatever it's called. When the IMA came out, they changed all the buttons. Like there's just a lot. of religious fervor. And this thing was just like this garbage Java app that ran so slow based on a protocol that anyone could build a client for. And it installed a bunch of spyware on your computer. And then somehow the bar was so low that it became the success. Yeah, this was like a huge improvement because it wasn't like Kazaa, which would just open 100,000 ads on your computer
Starting point is 00:17:48 every time you did anything. And so I think I was thinking about this again, like in the context of like me all these years ago thinking about this stuff. And I remember there was this long running worry that people had about like, oh, you're going to download a corrupted file if you go through limewire or whatever. And it's going to take over your computer and cause you all kind of trouble. And there was a bunch of that. And I have some fun examples of that that happened. But also just downloading the app was the spyware. It's like, I wonder how many people started being bombarded with apps and being like, oh, I must have downloaded a bad music file. And it's like, no, you just downloaded Kazaha. You did that to yourself in the very,
Starting point is 00:18:25 beginning here. But this is the state of things. Like there was there was a bunch of shady stuff going on and all these companies were like desperately trying to figure out how to make money. And what I've been trying to figure out this whole time and I still don't have a great answer is if if you're Mark Gordon and you're in the year 2000, are you thinking either I can do this properly and make it huge or are you thinking like there is a limit here. This is a hugely mainstream activity that is going to be absolutely adjudic out of existence, and I'm just going to get while they get it's good. And I would say everything about LimeWire suggests that that's how he felt about it, that he was just like, there's some money in this and I'm going to get it while I can. But everything he said about the product was like, I have a long roadmap for this. Peer-to-peer doesn't have to be bad. There's a lot we can do. I have big ideas for LimeWire. It's like, I would just, I would love to get Mark drunk and ask him, like, did you really think this was actually going to work? But for a while it did work. Like as late as 2006, the biggest numbers I saw that came up in some of the court filings
Starting point is 00:19:26 were that it was making $20 million a year, which is not earth-shattering amounts of money, but it's for a file sharing service, it's not nothing. Like, that's, you can run a business on $20 million a year. Especially when the open source community is writing the underlying protocol that makes your thing go. And when you're still running your head fund on the side. Like as a side project for Mark Gordon, it's a pretty good one. So this chugs along for a while. And then in like right in the middle of Lime,
Starting point is 00:19:51 wire's assent, the Grokster court case happens. So just to just to give you guys a sense of like the feelings at the time, we made a montage of some of the coverage of the Grokster case in 2005. Let me just play this for you. It's called Grokster. Not a nice name. And it's a name that's not liked by big media. And they're trying to shut that one down too. That case is going to the Supreme Court. Tech millionaire and Dallas Mavericks owner, Mark Cuban, is throwing both his hat and his wallet into the ring with Grokster. Cuban says if the entertainment industry wins its lawsuit, then it's like saying people don't steal content. Software does, which is ridiculous, right?
Starting point is 00:20:33 People from all over the country on both sides of this issue, the movie business, the recording industry, the high-tech business, fill the courtroom, the line that's stretched out the door early this morning. People waiting to get in. This obviously is a very significant case. The Internet file sharing service, Grokster, agreed to shut down today its software was widely used to copy music and movies for free. The company halted operations to settle a landmark suit by the film and music industries. It also agreed to pay $50 million. Like, I feel like if you want to pick the end of file sharing, it's this screen court case.
Starting point is 00:21:10 Yes, it is, it is, that is the end of file sharing. It is the birth of copyright law, as we know it today, through sort of series of other things. But essentially, you're looking at in the 80s, there was a case that went to the Supreme Court about Betamax. It was about essentially taping things on VHS, whether or not you could hold the VCR manufacturers liable for the fact that people were definitely, definitely infringing copyright by taping stuff on their home VCRs. Right. And what you got out of that was the Supreme Court said, no, we're not going to hold Sony. liable because, yes, people are probably infringing, but this technology is also capable of substantial non-infringing uses. People are also using their VCRs for stuff that isn't copyright infringement. And you shouldn't make an entire technology illegal just because people are
Starting point is 00:22:12 also infringing copyright sometimes, right? And so, okay, this is the thing I've always wondered about this case and have never had occasion to ask you before. In the Beta Max case, I forget the number they came up, but some like single digit percentage that they were like they're using, this is the number of people who are using it for non illegal activities. Yeah. It's like it's a really small portion. So like it's that's that's in the footnotes. So there's no rule where they go, oh, if you get 10% non-infringing uses, you're all good. Okay. This is what I was going to ask. Okay. But in the footnotes, there's a strong implication that if you can get 10%. You'll be your gravy. You're good. And that's 10% doing good things. So even if 90% of people are using your thing to record SNL on their videos. So like, so one of the one of the things that they were talking about actually in the in the decision was like, oh, so sometimes people just can't watch the sports game when it happens. They would have, but they couldn't get to their TV literally in front like in front of their TV. So surely it's okay to record it. and then watch it later. And that's known as time shifting. So it's not like they're recording like gone with the wind and then watching like gone with wind over and over again, which that would be, oh, that looks like piracy, right? So it's like, oh, yeah, 10% of the time people are watching the sports game like a few hours after it aired. And surely you don't want to make an entire technology illegal when it's capable of doing that.
Starting point is 00:23:49 So we're looking at that case, right? I just want to point out, by the way, empires have risen and fallen on the back of substantial non-infringing uses. Yeah. Like, the whole tech industry is built around what on earth does substantial non-infringing uses mean? And this number, the idea that you're pointing at a number is like everyone wants it to be simple. And empires have risen and fall on the fact that it is not simple. Right. It's not simple.
Starting point is 00:24:17 And also what happens is that with Grokster, that's the same. That's the end. That's the end of substantial non-infringing uses. So, yeah. So what happens with Grokstra is that, so you had the substantial non-infringing uses thing. And the idea with that is there's a difference between being the pirate and being the person who enables the pirate, right? Okay. The person who makes the Xerox machine, the corporation that makes the VCRs. And there's always been sort of this thing where like, yeah, maybe you didn't do the bad job. In the copyright context, There was a very, we knew what that range of actions or forms of participation were.
Starting point is 00:24:55 And then you get to the file sharing era. And when you get to the file sharing era, you're talking about peer to peer. So not Napster, but the later iterations you're looking at, it's all the kids, their computers are talking to other people's computers. And meanwhile, the people who are making the software, they're like, we're just making software. Right. we're not hosting anything. We're not doing anything. Why are we being held liable? By the way, we're running these studies that say that 30% of what's being shared is like, I don't know, like educational materials, like stuff that there was no rights holder attached. So surely, substantial non-infringing uses. And what you get is it goes to the Supreme Court and Supreme Court goes, well, don't love this.
Starting point is 00:25:47 Right? And what they do is they make up a new doctrine of copyright law. So they make up a doctrine. It's called inducement. Okay. And essentially the idea is, okay, sure. Yeah, you didn't host anything. But you were like, come, come here. Come here. Come here, kid. In French copyright. Like, right? Like, it's like the, and the examples that they give are kind of wild. You're the stranger opening the door to the van. It's, it is like, it can be kind of vague a little bit in some ways. So it's like the fact that they were billing themselves as a certain kind of service or like even the fact that like grokster like the name is stir, right? In the like in the name like or that they have like a, like a pause there for one second. Yes. The Supreme Court was like there's a stir in the name and that makes people think of Napster. You did it. Like it was.
Starting point is 00:26:35 That was in there. It's like open nap was like one of the one of the services had a thing like a sub spin out thing called OpenNap. And then there were like, the way that they advertise their services to people or the fact that like certain keywords would prompt like people to to find this application. Like right? Like those were the things that they were pulling together. And it's like, yes, people did understand that this was Napster's successor. But there was no legal theory that said you look kind of like Napster. Ergo you're illegal.
Starting point is 00:27:09 Right. This was new. It is true that this hues to the facts. of what was happening at the time. But to make law out of that, it's very strange. It's a very, very strange outcome. And I think importantly what happens is that substantial non-infringing uses goes away as a standard. Well, it's still technically the law, but it's really hard to rely on now.
Starting point is 00:27:33 Like, people just don't do it. Because if even if there are substantial non-infringing uses, but I'm kind of wink waking at you to do the bad stuff. Yeah, it doesn't matter. it's like, yeah. If your business is taking something for zero dollars and then trying to make some dollars, they're going to be like, yeah, it's inducement. Got it. Right. Does it look like this thing that we obviously know is bad?
Starting point is 00:27:55 Are you taking stuff for, like, and it's, it's, here we are in the AI era. Yeah. And where there's like infinity lawsuits about this. And like, this is, there's a world in which meta and open AI and whoever else shows up in court and is like substantial law infringing uses. And then there's a world in which, hey, you're basically helping people steal if not having stolen yourself and probably definitely having stolen yourself in this case of some of these companies. Okay. And substantial non-infringing uses, if you think about it in this period when it's happening. Like you're seeing sort of the birth of Web 2.0, right?
Starting point is 00:28:32 You can see how important it's about to become where it's like, oh, YouTube. Like, yeah, I'm putting up videos that don't have like any copyright attached. except for maybe mine. And then also people are putting up music videos that are owned by various record labels or whatever. Should all of YouTube become illegal based on that? Like, right? Like, so every single website is dealing with
Starting point is 00:28:57 the substantial non-infringing uses problem. As soon as substantial non-infringing uses stops being a reliable standard, then people start going, oh, wait a second. There's this law called the DMCA passed in 1999. And people, when it did, people were like, oh, this is like, you know, this is a real mixed bag of a law. But it really comes to prominence after Grokster, where this one legal standard, no longer something that people feel comfortable with, they go, all right, we're going to go to DMCA Safe Harbor.
Starting point is 00:29:28 Now we're going to go hide behind Safe Harbor. We're going to set up our DMCA agents, notice and takedown regime. And that's when Web 2.0 looks like what it looks like now. Got it. Okay. That's really interesting. And this actually, this all gives me way more context for something I read right after all this happened. There was a great, the New York Times had a big story right after Grokster was decided.
Starting point is 00:29:51 It was the day after. And they actually called Mark Gorton at Limewire and asked him how he felt. And he was super spooked by this whole thing. And his quote was, some people are saying that as long as I don't actively induce infringement, I'm okay. I don't think it'll work out that way. And he said the court handed a tool to judges that they can declare. inducement whenever they want to. They sure did.
Starting point is 00:30:13 They did. They absolutely did. Dude is spooked. And I think there's a real turn here for LimeWire that I think is really interesting because I think they started at this moment where if I'm understanding all of this correctly, the fact that the Grokster case even got to the Supreme Court was sort of surprising. Because a lot of this had like things kind of came and went before they sort of had huge overarching world shaping decisions made about them. And so I think, again, if I'm psychoanalyzing our man Mark here, there's this sense of like, okay, I can tweak the formula and I can make it work. Like I'm not going to make the Napster mistake of hosting an index of all of the stuff available on my system. I'm going to treat it differently.
Starting point is 00:30:56 I'm going to treat it like a business. We're going to be a little more legit and it's going to be fine. And then this happens and he goes, oh, maybe this whole thing was just a house of cards and now it is falling down. Yeah, I think that there's this really worrisome thing happening where if you look at the grokster oral arguments actually, people keep bringing up the iPod. And there is like this implicit understanding that the iPod is okay because it's an example of an American company making good, right? Like it's like it is very much you can hear the assumption in people's voices like, oh yeah, iPod's legal, but what makes the iPod different from this? Because you don't want to make the iPod illegal. Like when, you know, just the sheer hard drives. space indicates that this is for people with gigantic music libraries. Where do you get a gigantic music library? Nobody has the money for that. Right. And yeah, so like this thing that this Wall Street bro is trying to do where he's like piggybacking off of the piracy wave into something legitimate, arguably sort of like, you know, close one eye and like look real, like kind of blurry at the picture.
Starting point is 00:32:05 You're like, oh yeah, iTunes is kind of that. right? But there was like, yeah, like even Napster thought that it was going to sort of do the pivot and make deals with the record labels. Like everyone thought that they were going to eventually go legitimate and monetize and so on and so forth, which is of course what we're hearing now from the AI companies. It's like infringed copy right now and then make the deals later. So pretty quickly, Limeier starts to do basically exactly that. Actually, can I offer you just a quote of how the content industry was thinking. during this whole time.
Starting point is 00:32:38 Because inducement is very important in the content industry. They do not like substantial non-infringing uses. In other countries around the world, they have actually
Starting point is 00:32:47 put taxes on blank media. So if you went and bought a blank cassette tape or a blank CDR, the music industry would get paid because they were like,
Starting point is 00:32:58 people are going to use that for piracy. Just the act of buying blank media should offer us a cut. The music industry went to war with Apple trying to get a cut
Starting point is 00:33:05 of every iPod. and they got that cut for Microsoft, which resulted in no money, but they got that cut. So the content industry just has this very clear view that, like, this is our money. And if you mess with the money,
Starting point is 00:33:19 you need to give us some of it. And so I just, here's this quote. And I'm going to, it's years and years, years later, and it's going to sound bananas to this audience. Okay. So while this is all happening, there's basically the same litigation
Starting point is 00:33:34 is happening around TiVo, in digital PVRs. Oh, sure. For more or less the same reason. Right. It's a VCR, but now there's a hard drive in it. We're going to relitigate the whole thing because the technology is different. And there's one, this one comes out.
Starting point is 00:33:47 It's called the Sonic Blue 4,000, and it can automatically skip the ads. Sick. It can detect the ads. And as you watch the content, it can skip them. So here's a quote from Jamie Kellner, who at the time is the chairman and CEO of the Turner Broadcasting Division of AOL Time Warner. Okay. Famous success, Turner Broadcasting Division of AAL Time Warner.
Starting point is 00:34:08 Here's a quote. These are Jamie Calner. He says in 2002, skipping commercials is theft. Your contract with the network when you get the show is you're going to watch the spots. Otherwise, you couldn't get the show on an ad-supported basis. Anytime you skip a commercial, you're actually stealing the programming.
Starting point is 00:34:28 Good Lord. Like, just go to any young version. today and be like, is skipping commercials theft? And they'd be like, no, like, absolutely not. But at the time, this was all one product that all these companies were selling. And so these new computer-y things that could take the content and play them back in different ways
Starting point is 00:34:46 or get the content from piracies because the hard drives are so big. It was like you were getting in the car and being like, go up. And they were just like, my brain doesn't work that way. Like, I don't know what you're talking about. Stealing the commercials is obviously theft. And this is the disconnect that induce me.
Starting point is 00:35:01 So to that point, actually, let me just play you a montage we made of some of the chatter around all things music piracy at the time because the vibes are all over the place. We have South Park and then a bunch of very serious R-I-Double A people. Let me just play you this montage. You think downloading music for free is not a big deal. Downloading films is stealing. If you do it, you will face the consequences. The only way to go. And the best thing about it, it's free. Downloading, free, not likely. They're egregious uploaders sharing music on the internet in the range of that 800 songs per person. Joe Tentabon fighting a $675,000 fine for illegally downloading and sharing 30 songs. The Supreme Court refusing his appeal.
Starting point is 00:35:56 This became such a joke that it ended up on South Park, but it also people are like dead serious about it. All right, we need to take a quick break. And then we're going to come back and we're going to talk about the many, many, many lawsuits that also came for line wire. We're right back. Support for the show comes from Framer. Framer is an enterprise-grade, no-code website builder used by teams at companies like Perplexity and Murrow to move faster. With real-time collaboration and a robust CMS, with everything you need for great SEO, not to mention advanced analytics that include integrated AB testing, your designers and marketers are empowered. to build and maximize your dot com from day one.
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Starting point is 00:38:25 All right, we're back. So I want to get into lime wire dying, which happens very quickly here. But a couple of other interesting things are happening along the way here. First of all, LimeWire keeps doing new stuff. It started supporting BitTorrent in 2004. BitTorrent started to become a thing. LimeWire really wants to do this. It also launched a messaging app.
Starting point is 00:38:46 This was a thing in file sharing for a while. Everything app. Yeah. It was like, this is a way to send illegal music files directly to your friend. And so it's like it really is pushing towards this idea of wanting to be more than just a piracy app, even though it is mostly a piracy app. it's also trying to figure out if there is a way to make all of this work a little better. Right after Grokster, they started thinking, okay, maybe we'll ban people from sharing licensed files. We'll just remove all of that stuff from the platform.
Starting point is 00:39:19 And it pisses off a bunch of its contributors so much that they leave and create FrostWire, which is another pretty successful fire sharing app, basically like pirated out of lime wire because they were like, no, we don't want to go legit. We want to download music. So all of this is happening simultaneously, and then a bunch of lawsuits come for LimeWyer. Kind of two at once. There's one from Arista Records, which sues LimeWyer. But the big one is the RAA, which is its real sort of first huge swing since Grockster comes at Limeier.
Starting point is 00:39:59 And a thing I'm realizing now, as I go back over this, it was all induced. Like a huge part of this lawsuit came down to, ironically, LimeWire's website, which when you went to LimeWire.com, one of the things that it said was like not, it didn't quite say come here to download illegal music for free, but it basically did. And it talked about it talked about the search. It talked about the download speeds. It talked about all the sorting by genre, all the stuff you could find, all the music, you could find everything that was available. And it was like, it was right, right on the edge of, you know, the sorting by genre. It's sorting by genre. And it was all the stuff you could find, all the music. And it was like, it was right on the edge of. of being like a library full of illegal music for you to download. And, uh, and it's, which is funny because on the one hand, it's like, well, you obviously didn't learn anything from what you're doing here with Grokster. Um, but it was like really, really on the edge of, of inducement. There's, there's a, there's a trend here that, again, plays out over and over again. Yeah.
Starting point is 00:40:54 There's a law. And then a bunch of tech companies come up with a technical solution to the law. So with, you know, Napster's illegal because Napster owns. a central index of all the files in the network, even though the transfers are peer to peer. And then they go to business because of a lawsuit. And the tech industry, which doesn't look like the tech industry of today, it looks like a bunch of people just starting companies,
Starting point is 00:41:15 but like a bunch of tech people are like, okay, the law said you can't do that. What if we decentralize the index and make the protocol open source and call it Nutella for some reason? And then Groxer, or Limeier's built on the back of this. Groxter had a different solution to the Napster problem, right? And Grokstra goes up and they rule is you can't do inducement.
Starting point is 00:41:37 And so what you're seeing of limewire being right on the edge is yet another solution to the problem. How far can we go before it's inducement? And the only thing that they did was they calibrated wrong. Yeah. Yeah. And so they get caught because they went too far. And that's, this game never works. Like at the end of the day, the rights holders, the United States of America are entirely,
Starting point is 00:42:01 too powerful. And they will be like, no, you're just telling people to steal our stuff. And the courts now have this tool that's like, yep, you sure are. And there's just like nothing. There's no rational standard underneath that beyond, yep, it sure looks like that. I mean, judges also really hate when defendants are smug, right? Like that's the thing where they go, hmm, because it's like, because the defendant's sitting, they're going, what did I do?
Starting point is 00:42:27 Didn't I do it right? And then, yeah, the judge is going to be like, no, this is too cute. What do you think I am? An idiot? Like, no. And then off in the tech industry is like, yes. Yeah. Right.
Starting point is 00:42:38 And there's all these quotes from this time that are just people like, the law is can't keep up with the tech industry. And the judge is like, no, but your website's like, do you like stealing stuff? Yeah. Like, it's not that hard to figure out what you're doing. Yeah. But there is one other turn in this that I think is really interesting. And I want you guys to explain this to me. So one of the things that came up in this ruling, which is a district court in Manhattan.
Starting point is 00:42:59 So going all the way back to the. the Groxer thing, right? So they decide to try and figure out if there's a way to do this in a more legal way. And one of the things that LimeWire does is reach out to a bunch of record labels to get basically like catalog metadata in order to figure out if they can build a filter against that catalog that would block all of these licensed songs from being shared on the service, right? Try to figure out an automated way essentially to be like, oh, I know what song that is and that can't be shared. One of the things they were hoping to do then
Starting point is 00:43:34 was strike deals with all the record labels to make a paid service. You can sort of see the turn there, right? We're going to make it illegal to share the stuff that people are sharing and then we're going to make them pay to do it. And it's like that's sort of the two turns he had been planning for a while,
Starting point is 00:43:47 but I think that all gets accelerated after Grokster. But then the judge in this case said that because that was the plan and because they were developing this filter, it actually supported the RAA's argument that he and they knew that a huge part of LimeWire was to trade and share illegal files. And so just by virtue of the fact that you were trying to solve this problem, you are acknowledging it as a problem and thus your service is illegal. I would characterize that differently. Okay.
Starting point is 00:44:19 I think if you take a hostage and then demand a ransom, you are probably liable for kidnapping. You probably have a hostage, yeah. Like, that is a totally bad faith negotiation. Okay. Right? We have created the greatest threat to your business that has ever existed. Sure. We would like to legitimize it.
Starting point is 00:44:38 Pray I don't alter it further. Yeah. What are you talking about? And then just to contextualize the music industry, the bottom has fallen out of the music industry by this point. Right. Like ringtones are the great hope of the music industry at this moment in time. The crazy frog is going to save. the music industry, not iTunes downloads yet.
Starting point is 00:45:01 Right? So people have just stopped buying music. They stopped buying CDs, which were hugely profitable. They're not buying $1 a song iTunes purchases at the volume necessary to replace all that revenue. And we're like, here's what we're going to do. AT&T is going to sell Crazy Frog for $1,000 per phone. Right? And it was like, what is going on?
Starting point is 00:45:24 So like the music industry is now in dead panic. and they were looking at this hostage negotiation. I mean, like, absolutely not. Fair. I mean, when you put it like that, and so I surprised the RAA would agree with you. At the end of this. Who have I become?
Starting point is 00:45:39 Yeah, right? Somehow Palpatine is returned. You're a real monster. And I think, Sarah, this also goes to your point. One of the things, let me just read you a quote. This is from Mitch Bainwall, who's the RIA's CEO at the time. He thought his cleverness, he's talking about Mark Gordon.
Starting point is 00:45:51 He thought with his cleverness that he could get away with it. He's the Bernie Madoff of Internet crime, which is very good. He was thumbing his nose at the rule of law to profiteer enormously. And so I think it is, there is something to
Starting point is 00:46:02 the like this guy is this is all obviously bad faith. And that's what the record label said too over and over. Like they reach out and they're like, oh, do you like to make a deal? And they're like, why on earth?
Starting point is 00:46:11 No, we would like you to die. And then there's just the frost wire problem. Yeah. Sure. You can, maybe you can make a deal with Gordon and Limewire. And now it costs 10 bucks a month
Starting point is 00:46:22 to use LimeWire and we've created proto-Spotify. But it turns, out that everyone is still doing piracy. And what we need to do is kill that to create these new business models. Right. Yeah. So all of this goes for a while. And in 2010, the RAA, by the way, went after $72 trillion worth of damages in this case of Limeware. Yeah, it's like, what is it greater than the entire world's GDP or something like that? Which is very good. I really appreciate that from Limeware. But so the RAA wins this case in 2010.
Starting point is 00:46:55 wins an injunction and it essentially this is the end of limeware. It takes a minute for it to like properly. Losing $72 trillion in damages? Who would I thought? They didn't come back. So I will say they end up settling for $105 million,
Starting point is 00:47:08 which I would argue from from if I'm starting with nothing and you're starting with $72 trillion and we landed $105 million. I feel like I won that negotiation. We're much closer to my number than your number. This is the worst game of prices right ever played. Yeah.
Starting point is 00:47:25 bid a 72 trillion dollars. I'm going to go on the high side. I'm going to win the showcase showdown every time. One dollar. Let's do this. Which, like, by the way, that is another wild thing about copyright law is the statutory damages. Like, the numbers you see are, like, just they don't make any sense because they're tuned to
Starting point is 00:47:46 a different reality. Yeah. Right? So it's like it's, you're looking at minimum, maximum, statutory damages for, like, non-willful. you're looking at $750 to $30,000 per infringement. And then for willful, so like when you do a really bad job, it goes all the way up to $150,000 per infringement. This makes sense in a society where infringing is like,
Starting point is 00:48:10 I don't know, you're pressing a bootleg record. This makes no sense in a society where you are downloading hundreds of songs, right, like in your little college dormitory. And definitely makes no sense in a society. where you released software where millions of songs are getting like getting passed back and forth. So yeah, this is where you're getting greater than the whole world's GDP. Yeah, the numbers are just pretend. Yeah, this copyright law is maybe the only law that gets this weird, gets this absolutely wild.
Starting point is 00:48:44 And it's the only law that functionally regulates the internet. Yeah, it's super cool. The one we just keep doing it. By the way, on the damages front, you know it doesn't make sense because the RIA ran an entire program to, to, to, to stop kids from doing it at $5,000 a settlement. Not $72 trillion. And all those kids were downloading thousands of songs, right? Mark ran a hedge fund.
Starting point is 00:49:04 He had money. So you got to 72 T's equivalent of his money to $72 trillion was me to $5,000 in college. I mean, just a loaded gun, right? It's like it is you will pay whatever you can because we have this other gigantic number that we've calculated through this cudgel of a law. And we will, like, yeah, like you bring, they bring a machine gun to every negotiation, the $72 trillion machine gun. Yeah, it is copyright. It will radicalize you. Yeah, seriously.
Starting point is 00:49:39 So, yeah, so fall of 2010, there's an injunction against LimeWire. They do the damages trial in early 2011. And by fall of 2011, LimeWire's dead. And it was like through this whole process, it was kind of starting to die. I think a lot of people sort of saw the writing on the wall and were seeing these lawsuits. And I think the like the chilling effect of those $5,000 lawsuits was very real. Like it took a while. But it worked.
Starting point is 00:50:06 Like I think the PR campaign that that essentially was, I think was as successful as any of these other moves. Right. At least that's how I remember it. Well, I mean, other things started to happen. Right. The iTunes store existed. Steve Jobs famously did not want DRM on music for a whole variety of reasons. That led to a very different kind of file sharing because people had iPods.
Starting point is 00:50:29 You could plug the iPods in your friend's computer. You get the songs that way. This is all happening outside. Spotify launches 2006. Spotify launched in 2006 because the music industry in Europe was at zero. Right. Talk about negotiating in a hostage situation. It was dead.
Starting point is 00:50:42 It was just gone. And all of those labels in Europe were, like, we have a lot of reasons to try something new because no one's going to buy it. Piracy is rampant in Europe, particularly in Sweden. I think there are laws protecting pirates in Sweden in the way that hadn't really happened here. So, like, it was just a different, like the pirate bay, the torrent site still operates in Sweden. So Spotify just had this incentive to create this new structure. And it didn't come here for a while because the labels thought they could go back in time.
Starting point is 00:51:13 Right. And that all of this is happening sort of in the background of Lime. wire just meeting its final fate. Yeah, LimeWire did, to its credit, at one point, launch a music store. It had no music anyone wanted to listen to it, but it existed. But the biggest thing that happened in 2011 is that Spotify launched in the U.S. And that's when it all just flipped. Because it's like, that was the time all of a sudden.
Starting point is 00:51:39 And I remember having these conversations where it was like all of a sudden you could just listen to all the music that you wanted. Yeah. And then Spotify was just the game. Yeah. And it was like the whole, you have to be easier than piracy thing was like it finally was. It was just true. It turned out to be true. Like, which I don't know.
Starting point is 00:51:55 I mean, there's a whole set of arguments we made about whether or not Spotify costs the right amount of money, whether they're paying artists enough. But like the sort of basic contention of people wanted to listen to music on their devices and like not be tied down to records, CDs or their computers. they just wanted to something a little more portable. Yeah. It turned out to be true. Yeah. So, okay, so two codas to the LimeWire story. And then we're going to move on and do the version of history questions here. LimeWire has been through a bunch of weird lives for a while. It was like a couple of LimeWire employees bought the domain name and redirected it to a different file sharing service for a while, which that was very funny.
Starting point is 00:52:41 More recently, it was revived as an NFT project. which is gross and also like feels right. It's exactly right. Yeah, it is. But then I just looked at the website today, and it is, it's a file sharing website. Like, if you go to limewire.com, it just looks like we transfer. Which is very weird. But it is also a crypto token.
Starting point is 00:53:02 Also perfect. But the reason I find this company fascinating, and the reason I want to talk about is it really does feel like there's a certain version of this story that I think starts with Napster. And I think it ends with Limewire. Like, it is the last one. to be sort of sued out of insane existence by the RAA in this way, such that, like, it ended right at the moment, this other version of the music industry is starting to appear. And we just kind of never looked back.
Starting point is 00:53:30 I mean, I agree with that. I don't think that those things are independent of each other. Okay. Napster and Limeier destroyed a version of the music industry. It just brought it to an end. Sure. Yeah. Like, the music industry is riding high.
Starting point is 00:53:44 They're like, would you like another Britney Spears? We've manufactured one in Orlando. And they just did. They were just able to do it. MTV was a dominant cultural force. So much money was in a monoculture of music. There was just a vast array of artists who were making medium good livings in a way that kind of doesn't exist now. Artists were able to do things like claim they weren't going to sell out because they were just making enough money. And now it's like every artist already has a brand integration in their first single.
Starting point is 00:54:17 that's weird, but it's because the music has been totally devalued by all of the systems that came after Napster, after Limewire. And so there was a moment when what people were buying was music. There was a moment when there was just like economic value attributed to a song. And these companies just took that to zero. Yeah. Now these songs are worth zero because you can get them for free. And the music industry had to basically recreate a business model. And a lot of that business model is like, yep, we're going to give you 0.00. five line wine tokens per listen or whatever it is the artist.
Starting point is 00:54:52 And the artists are going to figure out that they have to basically live on tour. And they have to write the songs in hotel rooms. The songs are going to be really, really short so you get more listens. We're going to do brand integrations all day and all night because that's where the revenue is going to be. And something very big changed in the culture when you took the value of a song to zero dollars. Yeah. No, I think that's right. And it is like we spent then like a decade of,
Starting point is 00:55:17 breaking it and then the next decade was rebuilding it again in a totally different image. I like, okay, I'm actually going to challenge that. Yeah. I don't think it was these companies. I mean, like, yes, these companies made money off of it. But I think that this technology would have existed regardless. I think that the peer to peer, like, I mean, Nutella, good Nutella. I don't know. I think that all of that stuff was going to get written. I think all of it was going to get distributed. And I think that the piracy was going to happen. And what happened, like, where we see the massive amounts of piracy coming through these programs like LimeWire built by Wall Street Bros who are taking a cut off of the piracy. It's because, like, the interface is bit slicker, bit nicer than whatever you're going to spin up through open source means or whatever, right?
Starting point is 00:56:07 But I think that if you strip all of the capitalism out of it, this big technological shift was going to kill music. It was just going to kill the music industry. And, yeah, like, there is this thing where you, like, step back and you go, was that necessarily a good thing? Maybe not. But I think that it was going to happen. I think that it was going to happen. And at least the RIAA got their little cut of what would have been $72 trillion, if only they had made $72 trillion. Yeah.
Starting point is 00:56:42 I mean, you just wonder if they would have built more. They wouldn't have. They wouldn't have. But the systems we saw show up in other countries where your Internet access came with a content fee that was paid to the culture companies, right, that was paid to Hollywood and the labels. That existed in other places. The thing where the blank media had attacks, it showed up the United States and then this just wiped that conversation out. Because who cares about blank media when this happens? We have privatized collection societies now is what we have.
Starting point is 00:57:15 So it's like in other countries, it's known as like a collection society or like a tax or something, right, or a culture tax or whatever. And the idea is let's just take a lot of money out of the group of people because clearly culture is a shared common good. And then we will take that money and divide it up among artists who are creating the shared good, right? Somehow that makes a little bit of sense, right? If you leave America for like five seconds, you go, oh, okay. socialism, maybe that's okay, right? But in America, you can't talk about that. And instead, what we have is we have, we have, we have, we have Spotify, we have Netflix.
Starting point is 00:57:55 We have, we have Amazon, uh, uh, what's the Kindle one, um, Kindle Unlimited, right? Sure. These are all collection societies. They're taking a big pot of money from people and then dividing it up between artists. It is the same thing, but we've privatized it. And because we've privatized it, we have, there's like, there's no democratic consensus around it. There's no governance, no oversight.
Starting point is 00:58:18 We have no input. And so we've just got the worst of both worlds. And that's America in so many different ways. I will point out that one difference about leaving America and looking at the systems there, particularly when it comes to culture, they are all on guard against American culture, totally dominating their societies. So they're like, we have to make sure we prop up Canadian radio. Like propping up Canadian radio is the most important issue in Canadian culture. So they build entire systems to fund Canadian artists and make sure their radio stations play Canadian bands. Because otherwise, just a flood of cheap American culture would like take over.
Starting point is 00:58:58 This is sure not all these countries around the world. So like there's a little bit of like shared common good. There's also just a little bit of like, boy, it would be great to have some artists from our own country. It would be, boy, it would be great to not be America. I mean, it's like, it's what's there's that internet post that's like, congratulations. Congratulations. We'll continue to be your portrait of Dorian Gray in the attic. Like, right? Like, it's a, yeah, yeah. All right, we need to take one more break.
Starting point is 00:59:19 And then let's get to the version of history questions, which are going to be particularly weird in this episode. We'll be right back. Support for the show comes from LinkedIn. If you're a small business owner, you know that every hire counts. But time and resources are limited. Finding, connecting with, and screening the right candidates takes up valuable time you could be giving to your customers. That's where LinkedIn Hiring Pro comes in. It's built to be your hiring partner, helping you find the right candidates faster. That way you can hire with confidence without turning
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Starting point is 01:01:55 All right. We're back. So we do the same eight questions for every thing we talk about on version history. Let's start with the first question. What was the best thing about limeware? Not applicable. I mean, this is sort of the unique one, right? The first two questions are the best thing and the worst thing, and it's just all the free music.
Starting point is 01:02:22 I love applying those questions to this episode. It's just such a disaster because the first three questions are all inapplicable. Question number three. All right. We're going to skip the first two because they're the best thing and the worst thing. It's free music. It's free music. It's like, no, it's like, so the best thing is copyright infringement.
Starting point is 01:02:38 The worst thing is copyright infringement. Let's get to number three. Number three, I have a thing I would like to posit. Question number three is, would lime wire have been a bigger hit if Apple made it? And this is my favorite alternate future thing we have debated in a long time, which is what if instead of doing iTunes, Apple did file sharing? What if Apple decided not to be legit, decided, you know, screw this. We're going to make the iPod and we're going to make a file sharing system. And you're going to love it.
Starting point is 01:03:05 And I have a theory I would like to pause it, which is that Apple could have done a very good thing for the file sharing world, which is make it not terrifying. Like a thing that I kept coming up with over and over in file sharing and in researching for this episode is that like there was not just this latent sense that you're doing something wrong every time you open up a file sharing app, but that you might destroy your computer or do something horrible or cause some kind of mistake. Like I found this one thing. There was a 2007 case and the DOJ arrested a guy named Gregory Thomas Koppeloff who was using Limewire to basically scourerower other people. people's computers for personal information. Because when you set up LimeWire, a really easy mistake to make was to give it access to every single file anywhere on your computer. And so lots of people were just like inadvertently uploading and making available all of their personal data everywhere on their computer to anyone who was looking for it. So you could just
Starting point is 01:04:03 poke around the file system of people's computers. And so this guy was basically going into people's LimeWire libraries of files that were just on their computer, finding credit card information. and he spent $73,000 worth of other people's money that he found on LimeWire and ended up, you know, pleading guilty and was sentenced to, I think, four years in prison. Then there was another one, this huge data breach in 2008 that happened because somebody at a financial firm like down, like got on LimeWire. Again, bad configuration ended up. In 2008? 2008. This is like the, at the end of LimeWire.
Starting point is 01:04:37 And ends up exposing the names and information to a bunch of like high powered people, including Supreme Court jobs. Justin Breyer, who gets embroiled in this. And this is just a thing that happened over and over again, that like, A, every time you open LimeWire or any other file sharing network, you run the risk of downloading malware or doing something problematic to your computer. And B, there are all these other flaws in the system that could cause you huge problems. And to me, I'm like, you know what would be sick is the Apple file sharing network that just solves these problems and is only for piratism music. So this is very different now. Apple has vastly more scale and they're good at security in the ways they're good in security. At the time, like a core problem here is that no one had pondered, what if we put all the computers on a network together? Right? It just hadn't come up. That is true. Right. They're like, here's what we're going to do. We're going to give you a modem. And then this one application, America Online, we'll just do all the Internet stuff for you. Right. That'll do the connectivity. And then you'll quit. And then that application will not touch the rest of your computer.
Starting point is 01:05:41 And then we got to this place where it's like, okay, here's Windows. Not very secure. What if it was online? And like just no one had ever thought this through. Right. Like zero percent thought this through. And so you run into all this stuff where it's like,
Starting point is 01:05:56 I've exposed my entire local file system to everyone on the network. Because like the operating system has never contemplated this possibility. And so Apple at this time is just running around being like, we're so much more secure than Windows. And every opportunity they're like, you know, it doesn't have viruses is the Mac. You know, it doesn't have these problems as the Mac. And the response every single time was because no one has a Mac. Right.
Starting point is 01:06:20 You don't have any market share. No one has bothered to build a virus for you. Like no one cares about your shit, dude. And so like all these apps like don't have this problem on the Mac because they just haven't figured out how to do it. And by the time Apple comes up, they're like, someone has been like, oh, these computers are going to be in the network. Someone should think about that. Hey, Steve. We're going to put all the computers in the network.
Starting point is 01:06:46 Yeah. So you're saying, yes, Apple definitely could have made it. No. I'm saying they would have, they would have, like, OS9 would have died in, like, massive ways that they tried to do this. They were not ready for this. New idea. We're just going to network all the iPods directly. And I can just listen to your iPods.
Starting point is 01:07:03 Firewire cable. Yeah, that would work. All right, cool. So we figured it out. I love it. question number four if you could go back and make it yourself
Starting point is 01:07:12 what would you do differently I'm installing you at the beginning of LimeWire as CEO we work for Mark because he runs the hedge fund I would have sold it faster like right I would flip the shit
Starting point is 01:07:23 ASAP like it's like he waited too long he should have seen the writing on the wall like get out get out who thinks buying it Microsoft
Starting point is 01:07:30 I mean like this I flip it's another Wall Street though I don't know added to plays for sure or whatever yeah I would have of the company in Sweden. Let's be honest.
Starting point is 01:07:41 That's pretty good. Let's go for him shopping a little bit. You can't get me. If you're doing hacks, right? You're like, I designed arise the index. You can't get me. You're like, you can't get me because I'm literally in Sweden. I mean, they still got those guys. Okay. Question number five. What feature of LimeWire should every current music app or platform have? My feature is I still think this is a piracy thing in general. The thing where you could go look at all the music somebody else had on their computer was awesome. And I want more of that. I want to be able to snoop on people's music libraries again. Yeah, that'd be good. This should
Starting point is 01:08:16 come back. I'm deeply embarrassed of my own music library. But like, there was a time where the whole idea was look at other people's music. That was a fun period. Because like, because you get to show off your collection. But not only that, there were like, there was like tribalism based on how you did your file names. Right. Oh, interesting. Because like not everyone had the same format for file names and some people liked to have the album name in there but other people liked to put the album name in the in the file structure and then but sometimes you'd have artist album name song name sometimes do just the song name and then it would be nested inside the thing I don't know we should bring that tribalism back I remember when I was going through you would find somebody who
Starting point is 01:08:59 had like done all of the metadata really cleanly this guy and then you'd be like I'm going to go look at all of their music I know I'm now prioritizing this stranger's music because they did all the tags correctly. Yeah, Nilai, you were this person for sure. 100%. I had thoughts on which utilities are the best, on batch changing tags. What was the order of the file name? It was artist album, song title.
Starting point is 01:09:22 Okay. That was very important to me. Yeah, I believe that. But this, by the end, the file names were immaterial to the ID3 tags. Right, sure. Yeah, yeah, by the end, yes. So the folder structure was artist album song title. The file name was just a song title, but you understand, David.
Starting point is 01:09:41 The metadata was contained in the tag. Did you put the track number at the beginning of the song title? No, because it was all in the tags, bro. It's all in the tags, bro. Like iTunes updates had support for new kinds of tags, and this was like a very big deal. When the tags became good, it was game changing. It was wonderful. It was great.
Starting point is 01:10:01 I remember spending alarming amounts of time reorganizing music inside of my iTunes library with that stuff. There was quite a lot of time. spent doing that. Quite a lot of energy and investment and you could show it off to your friends. Look at me. I've got such a clean, beautiful library. What's up with your library? All right. Question number six, is there an alternate timeline in which LimeWire was more or even more successful? I kind of think LimeWire timed itself perfectly. Yeah, it's like it is the most successful version of itself that it could have been. Like, it really should have either failed earlier or just not, yeah, it seems shocking to me
Starting point is 01:10:41 that it existed as long as it did. Yeah, like it had a 10-year run. That's kind of like given... In that world is a long time. It's kind of a while. I do think there's an interesting, like, if it had started 10 years later or even five years later and hadn't been the one that the RIA decided to break in half
Starting point is 01:11:00 and had gotten a real chance to actually like make Spotify-ish deals and try to do the go legit turn. It would have been interesting to see it try. And I think it probably wouldn't have worked because by the time you do any of the file sharing stuff, you've just burned all of those bridges. But like if they were serious about wanting to turn into that other thing, the move is start five years later and don't be the one that becomes the target for everybody
Starting point is 01:11:26 and sort of like live to fight another day. But I don't think it would have worked. Yeah, I don't think so. I think that they, at this point, peer to peer was so. anathema, I think that in order, the universe in which any of this stuff succeeds is it starts way earlier. Like the fork happens with Napster. The fact that Napster did not close that deal with Sony that everyone thought that they were going to close. Like they, like, close watchers thought that Napster was going to make a deal with Sony music because Sony also was making MP3 players.
Starting point is 01:11:57 So they were the label that was out of lockstep with the other labels because they were the, They were also making the thing that had substantial non-infringing uses, right? But no, Sony's stuck with the other labels. And so in the forking universe where that deal gets made, Napster survives, and we see just a different universe of even cases. And LimeWire never makes it. LimeWire just never makes it, period. Yeah.
Starting point is 01:12:27 Yeah. So this was the best universe for LimeWire where its competitors got sued out of existence. before it got sued out of existence. I want to be 100% clear that Sarah's best universe for LimeWire involves a $72 trillion dollars damages, this is the best it could have gone for you. Could have been higher? Yeah, that's true. Question number seven, could you reboot LimeWire now?
Starting point is 01:12:50 To be parentheses, not as an NFT. No, it's, the only future for these kinds of brands is to be NFTs. Do you know how old, like, old defunct consumer electronics brands get bought up by like weird Chinese distributors and like polarides back. These things, only NFTs. Okay. My only case for this would be, do you think it's possible that there is enough nostalgia that if they were like, we're just doing Spotify, but it's called LimeWire, that it might work? Like, Spotify does like a South by Southwest stunt where they just rebranded as LimeWire. Sure. Why not? The Lime coin gets so valuable that they buy Spotify,
Starting point is 01:13:30 rebranded as LimeWire. Spotify doesn't have enough problems with artist reputation. They might as well just go all the way to LimeWire. Yeah. No, I think the answer is no and the way that I know is because they have tried to do it with Napster like 35 times. Napster over and over and over keeps making comebacks and no one cares. Napster falls in the same category as the Delorean in my mind. So they keep trying to bring back Dolorians all the time.
Starting point is 01:13:53 They're like, the DeLoreans back. And everyone's like, the Deloreans back. And then it fails. I'm like, bro, no one cares about a Delorean. They want time machines. And you have not made a time machine. Yeah, the doors that go like this are not the reason people love the Delorean. The weird tin can triangle car, at every scale is now proven to be a failure.
Starting point is 01:14:13 Have you thought about making a working flux capacitor? And like, Napster has the exact same brand problem. Yeah, yeah, fair. I agree. All right. Question number eight, does LimeWire belong in the Version History Hall of Fame? As you both know, the Version History Hall of Fame. nebulous and vibes based.
Starting point is 01:14:30 The answer is no. I don't even know. It's hard no. Whatever the rules are. I think that's right. Yeah, it doesn't. It doesn't. I mean, my answer is similar to the one about sort of forking universes.
Starting point is 01:14:42 I think Napster belongs in the Hall of Fame and LimeWire does not. Limewire had a freak accident history in which it was the last one standing because it did not, it just wasn't important enough. And then it had all of the market share because it was the last one standing and then it died. Yeah, no, I think that's right. I think LimeWire is like a good footnote in the story but does not belong in the Hall of Fame. Yeah. I agree. All right. All right. Thank you both. This is very fun. I got, I got lawyered at for a while. This is, this is my goal. I hope you had a good time. I loved it very much. We're just going to call this episode substantial not infringing uses. And no one is ever going to watch or listen to it. And I'm very excited about it. That's it for the show. Thank you so much to both of you for being here. Thank you for watching and listening. As always, you can watch all of our episodes on YouTube. You can listen to them wherever you get podcasts.
Starting point is 01:15:29 The best way to support us and all of this is to subscribe to the verge.com. Please do not take your content for free. He's skipping the commercials as then. We will see you next time. Thank you as always. Version History is produced by Victoria Barrios, River Branson, Owen Grove,
Starting point is 01:15:50 Brandon Kiefer, Travis Larchuk, Eric Gomez, Andrew Marino, and Alex Parkin. Studio support from Chris Shirtleff. Our theme music is composed by Brandon McFarland. Be sure to subscribe to the new version history podcast feed to get all of our new episodes, as soon as they arrive.

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