Ben Strack

The LimeWire brand, once synonymous with file-sharing in the early 2000s, has morphed into an AI-powered content publishing platform.



In 2021, brothers Julian and Paul Zehetmayr acquired LimeWire&#8217;s intellectual property for an undisclosed sum, rebranding it as a blockchain-focused project. Under their ownership, LimeWire has harnessed blockchain technology to realize its updated vision.



The company’s new AI Music Studio lets users create tunes using generative AI tools and subsequently publish them on the same platform, it revealed Tuesday.



LimeWire makes such content ownable and tradeable via blockchain tech, allowing creators to monetize it via an ad-revenue share program.&nbsp;



“All content pieces created in the LimeWire <a href="https://blockworks.co/tag/artificial-intelligence">AI</a> Music Studio are minted either on Polygon or on Algorand,” LimeWire co-CEO Julian Zehetmayr told Blockworks in an email. “Creators can simply select which chain they or their communities prefer.&#8221;



Brothers Julian and Paul Zehetmayr <a href="https://blockworks.co/news/can-limewire-brand-juice-adoption-of-new-nft-based-music-marketplace">bought LimeWire’s intellectual property in 2021</a>. The company raised about $10 million in April 2022 — <a href="https://blog.limewire.com/limewire-raises-over-10-million-in-private-token-sale-led-by-kraken-ventures-arrington-capital-and-gsr/">saying</a> at the time its focus was launching a music-focused digital collectibles marketplace as a way “to drastically lower barriers of entry into the world of <a href="https://blockworks.co/tag/nfts">NFTs</a>.”



LimeWire’s NFT marketplace went live in 2022. Its public LMWR token sale closed in June.&nbsp;



The company’s decision to let creators choose which blockchain to mint content to is consistent with LimeWire’s historical multi-chain approach. LimeWire said in a June 2022 blog <a href="https://blog.limewire.com/limewires-multi-chain-approach-explained/">post</a> that while the majority of its platform NFTs would be minted on <a href="https://blockworks.co/tag/algorand">Algorand</a>, it would use the Ethereum blockchain for specific invite-only collections.



LimeWire <a href="https://blockworks.co/news/limewire-polygon-web3">debuted its creator studio</a> with image generation capabilities in August, noting it would mint content to the <a href="https://blockworks.co/tag/polygon">Polygon</a> blockchain. It acquired image generation platform BlueWillow the following month.&nbsp;



&#8220;As music continues to evolve, so does our dedication to providing aspiring musicians with cutting-edge tools that empower and amplify their artistic expression,&#8221; co-CEO Paul Zehetmayr said in a statement.



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Algorand

New LimeWire AI-powered music platform uses Polygon, Algorand

A file sharing program once used to spread pirated music in the early 2000s will continue its more recent iteration as a Web3 content platform by launching a creator studio on Polygon.



The studio’s first use case is image generation, allowing users to create new images or enhance existing ones via various artificial intelligence models.



Later in the third quarter, users will be able to use a library of melodies, beats and songs to create AI-generated music, according to LimeWire chief operating officer Marcus Feistl. The content is to be initially sourced from partner platforms and LimeWire-owned content before allowing musicians to upload their own content.



Everything created in the studio will be minted on the <a href="https://blockworks.co/tag/polygon">Polygon</a> blockchain. The platform splits earnings between the uploading artist of the original content and the creator of the newly AI-generated content.



Specifically, artists earn a share of the ad revenue generated on LimeWire — paid out in its native LMWR token — based on the number of views their content generates. The pieces of content can also be traded on the LimeWire secondary market as <a href="https://blockworks.co/tag/nfts">NFTs</a>. Creators would receive a royalty, currently paid out in USDC, on this trade volume.&nbsp;



Finally, creators can limit access to their content by requiring fans to pay a monthly fee, also denominated in USDC.



Payouts through these various methods are sent to creators’ LimeWire accounts and can be withdrawn at any time.



“The studio is really made for experienced creators just as much as it is for first-timers,” Feistl told Blockworks in an email. “Experienced creators might use it to enhance their existing content or to tap into new content types — [like] creating cover art for music releases — while newcomers might find it as a very easy start into their creator journey.”



While each user gets a certain amount of free creations per month, those using more frequently will be charged a fee, the COO noted.&nbsp;



Brothers Julian and Paul Zehetmayr <a href="https://blockworks.co/news/can-limewire-brand-juice-adoption-of-new-nft-based-music-marketplace">bought LimeWire’s intellectual property in 2021</a> for an undisclosed sum. The company raised roughly $10 million in April 2022 as part of a private token sale by Kraken Ventures, Arrington Capital and GSR.&nbsp;



LimeWire said in a blog <a href="https://blog.limewire.com/limewire-raises-over-10-million-in-private-token-sale-led-by-kraken-ventures-arrington-capital-and-gsr/">post</a> at the time its initial focus was to launch a music-focused digital collectibles marketplace, noting the platform was designed “to drastically lower barriers of entry into the world of NFTs.”



In April, the company <a href="https://blockworks.co/news/limewire-crypto-game">launched a game</a> for users to simulate the downloading of music considered popular at the turn of the century. The official listing of its LMWR token came a month later.



The launch of its NFT marketplace and token listing were “the required steps to democratize creator earnings and create a decentralized and fair creator economy on LimeWire,” Feistl said.&nbsp;



“LimeWire&#8217;s goal is to become the no.1 platform for anyone to create, share and monetize content,” he added. “With the launch of the LimeWire AI Studio, we will now lower the entry barrier for anyone to become a content creator and start their creative entrepreneurial journey.”



Napster, a file-sharing application launched in 1999 that competed with LimeWire, revealed earlier this year it would also move into the Web3 space <a href="https://blockworks.co/news/napster-begins-planned-acquisition-spree-amid-shift-to-web3">via an acquisition of NFT music platform Mint Songs</a>.



That buy came after blockchain company Algorand and crypto investment firm Hivemind <a href="https://www.linkedin.com/feed/update/urn:li:activity:6929792306673815553/">bought Napster</a> last year. The acquirers said in a LinkedIn post at the time they would “once again revolutionize the music industry by bringing blockchain and Web3 to artists and fans.”



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creator economy

LimeWire continues Web3 journey with ‘creator studio’ on Polygon

Shalini Nagarajan

LimeWire, the once-popular file sharing app now rebooted as an NFT marketplace, wants to recreate the early 2000s — when pirated music was at its most popular — but with a crypto twist.



The platform, resurrected by Austria-based entrepreneurs Paul and Julian Zehetmayr in mid-2022, has launched a simulation game that allows players to download nostalgic music considered popular two decades ago.



LimeWire’s game mimics its former life as a Windows XP program, complete with “rolling greens” aesthetic.&nbsp;



In order to participate, players will be required to enter their email addresses, which will be used to track scores and send information on potential prize collections after the game.



Players can search for music and films from the 2000s and will be allowed to &#8216;download&#8217; as many as they can in order to collect points. But download a file with a &#8216;virus&#8217; in it, and the game will end. Decrypt first reported the news.



The game will only be available until May 15. The top 1,000 players scoring the highest will be rewarded with LimeWire’s upcoming ERC-20 token, LWMR, which can eventually be used to purchase NFTs.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2880" height="1636" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=1024&amp;h=1024" alt="" class="wp-image-52046" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=2880 2880w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=459 459w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2023/04/Screen-Shot-2023-04-13-at-14.01.59.png?w=80 80w" sizes="auto, (max-width: 2880px) 100vw, 2880px" /><figcaption class="wp-element-caption">Look familiar?</figcaption></figure>



LimeWire&#8217;s token <a href="https://lmwr.com/" target="_blank" rel="noreferrer noopener">public sale</a> is scheduled for next month, having already been backed by the likes of GSR, Arrington Capital and Kraken Ventures, per its website.



Examples of suspicious downloads include file types that end in “.exe,” overly large files, or corrupt file names. In its heyday, LimeWire was well-liked for helping users download music and movies free of cost, but ultimately, it was synonymous with computer viruses.



Remember, the download doesn’t actually fetch a player the real file — it’s just a game.



The LimeWire platform was <a href="https://blockworks.co/news/can-limewire-brand-juice-adoption-of-new-nft-based-music-marketplace" target="_blank" rel="noreferrer noopener">revived</a> after the Zehetmayrs bought the brand’s intellectual property in 2021, with the intention of rebranding it into a music-focused NFT marketplace.



Unlike NFT marketplaces such as OpenSea or Rarible, LimeWire acknowledges that some customers would still like to purchase NFTs with fiat currencies.



“To be clear, we are big fans of decentralization,” co-CEO Julian Zehetmayr previously told Blockworks. “At the same time, we believe the market just isn’t ready yet for fully decentralized platforms to be appealing and usable for the mainstream.”&nbsp;



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cryptocurrency

LimeWire Will Pay You Crypto For ‘Downloading’ Pirated ‘Music’

Macauley Peterson

<div id="highlights-block_6228dc830aaa1" class="highlights">
 <ul>
 <li>LimeWire, launched in 2000, was a popular peer-to-peer file-sharing service until it was sued out of existence by the Recording Industry Association of America in 2010</li>
 <li>The NFT marketplace will be an artist&#8217;s alternative to Spotify, which pays out notoriously small royalties</li>
 </ul>
 
</div>



Any music fan born before, say, 1990, probably remembers LimeWire, which grew to prominence in the days of the free MP3-swapping services Napster and BitTorrent.



But music labels considered the service an enabler of wholesale intellectual property theft and sued. After a four-year court battle <a href="https://www.scribd.com/doc/40191948/Injunction-Lw" target="_blank" rel="noreferrer noopener">that ended</a> with a “permanent injunction” in New York, the company pulled the peer-to-peer plug on 50 million monthly users.



Now, a pair of Austrian entrepreneurs — brothers Julian and Paul Zehetmayr —&nbsp; are bringing back LimeWire with a crypto twist. The Zehetmayrs purchased LimeWire’s intellectual property in 2021 for an undisclosed sum, hoping to juice the launch of a new music-focused NFT marketplace.&nbsp;



The project — which is otherwise entirely unrelated to its namesake — is slated to launch in May and allows fans and music collectors to trade music-related assets using NFTs (non-fungible tokens).



The platform differs from major players in the NFT marketplace business today, such as OpenSea and Rarible, in that it is custodial, allowing customers to purchase NFTs with fiat currencies, according to Julian Zehetmayr, LimeWire&#8217;s co-CEO.&nbsp;



“To be clear, we are big fans of decentralization,” <meta charset="utf-8">Zehetmayr told Blockworks. “At the same time, we believe the market just isn&#8217;t ready yet for fully decentralized platforms to be appealing and usable for the mainstream.”



NFTs will be minted on a blockchain — the company declined to specify which until it’s announced later this month — and can be withdrawn to noncustodial wallets.



“We are actually combining the best of both worlds, allowing users to trade decentralized collectibles on an easy-to-use, custodial platform offering fiat payments, easy signup without a wallet, and a very simple and clean user experience,” <meta charset="utf-8">Zehetmayr said.



The plan is to share 90% of primary sales revenue with artists, while LimeWire will take a 10% cut. The platform commission on secondary sales will be lower and earn artists royalty payouts.



There will also be a token, LMWR, issued in the fourth quarter that will allow users to cut down on commission fees, participate in a rewards program and engage in voting and moderation of initiatives.



When LimeWire was shut down in 2010, a US District Court judge <a href="https://www.theguardian.com/technology/2010/oct/27/limewire-shut-down" target="_blank" rel="noreferrer noopener">called</a> its service “a massive piracy machine.” (Incidentally, Napster suffered a similar fate in 2002, while BitTorrent survived as a decentralized network, eventually acquired by <a href="https://cms.blockworks.co/decentralized-blockchain-tron-creates-300m-fund-to-invest-in-gamefi-space/" target="_blank" rel="noreferrer noopener">Justin Sun</a> in 2018 as part of an effort to boost the Tron ecosystem.)



“Web2” successors, such as Spotify, cut record companies in on the action, but pay artists a small fraction of sales revenues. NFT-based music services are designed to establish the provenance of media assets while equitably distributing revenues, including royalties, to creators.



This story was updated on March 9, 2022 at 1:13 p.m. ET



<hr class="wp-block-separator"/>



Update: March 14, 2022 10:30 a.m. ET:



Limewire <a href="https://twitter.com/limewire/status/1503357103666302983?s=20&amp;t=be5ygf2PEuRcGJGHOrQcfw" target="_blank" rel="noreferrer noopener">announced</a> the NFTs will be minted on the <a href="https://cms.blockworks.co/?s=algorand" target="_blank" rel="noreferrer noopener">Algorand</a> blockchain.



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