A leading service that attempted to dissuade people from using file-trading networks like Kazaa, by planting millions of fake files online, is being shut down.
Seattle-based Loudeye said Friday that it is shuttering its Overpeer division, effective immediately, in an attempt to bolster the parent company’s bottom line.
Executives did not immediately return a request for comment. However, in a filing with federal regulators in November, Loudeye said the Overpeer division had seen declining revenues through much of 2005 and that a major client had dropped its services at the end of the second quarter.
Overpeer rose to prominence in 2002, at the height of the Net’s love affair with peer-to-peer networks, offering record companies and movie studios a way to discourage would-be file-swappers looking for hit music or films.
The company used banks of servers around the world to plant false files, so that when a file-trader downloaded the latest Matrix movie, for example, it would often turn out to be garbage data, or an advertisement.
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