Industry pioneers frequently catch arrows in their backs.
But early-mover Seeqpod is now drowning in a flood of litigation. The distributed, on-demand streaming startup has now filed for bankruptcy, part of an emerging flame-out. On Monday, the company petitioned for Chapter 11 with the US Bankruptcy Court of the Northern District of California, a likely first step towards oblivion.
That means that litigants Warner Music Group and EMI Music will probably receive paltry funds, if and when they finalize their ongoing legal actions. EMI Music also opted to chase downstream developers using the Seeqpod API, though it remains unclear what happens to those extraneous players.
Meanwhile, Seeqpod is now spreading its source code far and wide, part of a licensing plan that carries an element of revenge. “This just goes to show that when you sue technology — or the internet — you unleash a powerful demon technology,” a Seeqpod executive recently told Wired. The filing was first reported by TechCrunch