However, Peerialism CEO Johan Ljungberg said today that he thinks there will be no business done between the two companies.

“The [shareholders] meeting gave us no direct answer at all, but based on declarations by GGF before and after the meeting, and the reporting that has taken place in recent days, we conclude that GGF will not succeed in obtaining any financing,” Ljungberg told di.se.

The agreement between the companies says that the full purchase price must be paid by 30th September, something which Ljungberg says is unlikely. He also notes that the identities of potential investors are still unknown.

“The mechanism that GGF presented – a pledge of shares as collateral for financing – will be difficult if the stock is trading halted. And if I understand AktieTorget rules, the suspension will remain for a couple of weeks. This makes the plan difficult to implement within the time frame of our contract,” he said

So far, Peerialism has seen no money from GGF.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

On the one hand users sometimes complain about slow download speeds, but most of all, Internet providers are not always happy with the heavy load BitTorrent transfers put on their networks.

The Swedish based company Peerialism hopes to tackle these problems and make BitTorrent future proof. Aside from their issues with GGF, they are currently working on the release of a new Open Source BitTorrent tracker based on the OpenTracker software currently in use at most of the larger public BitTorrent trackers.

Andreas Dahlström, the CTO and founder of the company explained to TorrentFreak that the key to solving BitTorrent’s main problems is to make the tracker location aware, so that peers first try to share files with other peers that are closer to them.

“In standard BitTorrent the tracker chooses a totally random number of peers for you. There are some good reasons for this since random actually gives some nice and robust network properties but in many cases this will force you to download for peers far away from you,” Dahlström said.

“This has two effects: slower download speed and unnecessary network traffic for the ISPs. And since BitTorrent traffic causes so much problems for ISPs many use traffic shaping, causing even slower download speeds,” he explained.

The solution to this problem according to Dahlström is to make the tracker select peers more intelligently, based on their geographical location. The initial tests of this new methodology are very promising, as they result in faster download speeds for BitTorrent users, and less traffic going outside the ISPs network.

“We have built p2p algorithms which actually map the entire Internet. We can use this to let a BitTorrent Tracker assign you to the peers closest to you. The effect for the downloader is 30-150% faster downloads and 20-50% less traffic for the ISPs,” Dahlström told TorrentFreak.

This sounds like a classic win-win situation. If it’s implemented by most of the leading BitTorrent trackers, ISPs will have less trouble handling BitTorrent traffic and thus less incentive to slow it down. On the other hand, BitTorrent users will see a boost in their download speeds.

There is a minor drawback to the plan though. The new trackers will use more CPU and memory, which means that more power is required than with the current setup. This means that the people who run the trackers will have to invest in new hardware.

“We work hard to together with Ergeist [the creator of the original OpenTracker software] to minimize the extra load,” Dahlström said. “We do believe the extra resources are well spent compared to the improved download speeds and less ISP traffic.”

If Peerialism can deliver what they are promising, their new tracker will be one of the most significant advancements to BitTorrent in years. Although they are not the first to come up with the idea of location based peer allocation, some might remember P4P, the solution they offer is superior since it requires no changes to the existing BitTorrent clients.

In addition, Peerialism is already working together with the developer behind the most widely used BitTorrent tracker software currently in use by The Pirate Bay, OpenBitTorrent and PublicBitTorrent trackers. Thus, they are as close to the fire as they can be.

The Open Source tracker, currently codenamed OpenTracker 2.0, is set to be released in September. If some of the larger trackers decide to use it we might see a huge drop in Global Internet traffic instantly, along with faster download speeds for most BitTorrent users.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

Earlier today reports surfaced in which it became clear that Johan Sellstrom, former director and board member of GGF, is owed hundreds of thousands of dollars by Pandeya. As a result, trading in GGF’s stock was stopped immediately by equity marketplace Aktietorget.

Sellstrom told TorrentFreak that Pandeya used $200,000 of his money to buy GGF shares in 2006 and 2007, but has yet so see any of the money back. “I want that cash back,” Sellstrom said, adding that Pandeya owes him another $650,000 privately.

Sellstrom has only recently left GGF, and he cites the company’s future plans for The Pirate Bay as one of the main reasons. “I did not believe in the strategy,” he told TorrentFreak. On top of that Sellstrom says that Pandeya refused to share economic reports with him.

In addition to the troubles surrounding Sellstrom’s loan, one its technology partners, Peerialism, is also waiting for money from GGF. Peerialism is supposed to provide the new Pirate Bay with a unique technology that would allow users to share more efficiently.

But Johan Ljungberg, CEO of Peerialism, told CNET News that Pandeya is not keeping his promises. Peerialism has been hired to start working on the new technology for the site, and was promised half of the money upfront.

“That was two months ago but he hasn’t paid anything,” Ljungberg said. “We have his signature on the contract, but he hasn’t paid and we haven’t done the work.”

Besides failing to pay the people that were supposed to provide the new Pirate Bay with key technology, Ljungberg said that Pandeya also failed to inform Peerialism about the company’s future plans and financial position.

“From the beginning we asked to see a business plan, the names of his investors, or to see some (technical specifications),” Ljungberg said. “We still haven’t heard a thing…the question marks are growing bigger by the day. We’re not quite comfortable with the situation. We had really high hopes and ambitions for our technology but I’m not sure if this is the right home for it.”

The doubts and uncertainties pointed out by former GGF director Sellstrom and Peerialism’s Ljungberg don’t do the image of GGF much good, and the shareholders and potential entertainment industry partners may become skeptical too.

Aside from the lack of payments described earlier, the equity marketplace Aktietorget is also uncertain that GGF actually has the funding in place to make the Pirate Bay acquisition

Aktietorget says it has no evidence of any funding apart from a press release by GGF. They wanted to know more so they summoned Pandeya, who got someone on a phone saying he is with an investment bank. The man claimed that the funding is indeed in place, however, trading will be halted until they get written confirmation as well as the identity of the investors.

These recent developments will certainly raise some eyebrows with the shareholders. A smooth acquisition of the Pirate Bay seems to be nearly impossible. Despite all the allegations, Pandeya remains confident and told TorrentFreak: “Some people’s attempts to damage the deal have escalated, but it is too late to stop the acquisition.”

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.