Program lets users share files and fees

In the '80s, he played bass guitar in a punk band called The Thrown Ups and later appeared in the grunge rock documentary "Hype!" In the '90s, he started programming and working with Internet companies before joining Microsoft's research group.

Now at 44, Beezer is riding yet another wave that combines two of his passions: music and technology. As founder of Shared Media Licensing, Beezer has developed a file-sharing program called Weed that allows music fans to download songs and then be compensated for passing the tracks on to friends.

"We are different from just about everybody else selling music, like iTunes or Rhapsody," said Beezer. "We provide a service that allows the files to be traded and commercialized by others."

Today, AV Capital -- a newly formed investment firm started by former Starbucks executive Arthur Rubinfeld and former investment banker M. Mark Albert -- is announcing an equity stake in the company. Until this point, the 15-person company has been funded by friends and family. It has raised about $1 million to date.

Shared Media is entering a risky business.

The recording industry has not reacted too kindly to companies or individuals that use peer-to-peer networks to exchange digital music files. And large competitors such as Apple and RealNetworks already have well established online music stores.

But Beezer said his company is operating within the law and taking a new approach to digital music. Currently, about 8,000 musical artists -- including Chuck D, Built to Spill and Kristin Hersh -- have agreed to distribute about 80,000 musical tracks through the company's system.

The music files, which can be found on artists' Web sites or independent music sites such as Weed files.com, range in size from three to 10 megabytes. The system is only open to artists who agree to participate.

"Nothing enters our system without passing through us first," said Beezer. "Technically, we Weedify the files -- I am still getting used to saying that."

Consumers who download the company's file-sharing software can listen to a song three times for free on a personal computer. Upon the fourth listen, the user is asked to purchase the song.

If a purchase is made, the music fan can then listen to the file on up to three personal computers or transfer the file to a portable device such as the Rio S10. They also can pass the song to a friend, opening the door for a possible commission if a sale is made. On a song that costs $1 that is transferred to a friend, the artist receives 50 cents and Shared Media receives 15 cents. The remaining 35 cents is split among the last three music fans who were responsible for distributing the file, with 20 cents going to the person who recommended the song, 10 cents going to the person who passed it on to that person and 5 cents to the person who recommended it before that.

That may sound like a confusing multilevel-marketing scheme in which those at the top receive the biggest rewards. But Beezer said he disagrees with those who characterize it as a pyramid or Ponzi scheme.

"I prefer viral," said Beezer. "I go to great lengths to distinguish. We don't position ourselves as a way to get rich."

The Weed file sharing system has won some praise recently. In addition to being featured in Wired magazine, eBay recently chose the company's software as a component in a new digital music store. The company also is in talks with major music distributors and labels about deploying the technology, Beezer said.

At this point, Weed has yet to hit the mainstream with only about 12,000 music downloads in the first year. But Beezer -- who is currently looking for additional capital -- said there are multiple opportunities to grow the business.

"We are really trying to get out into every nook and cranny of the Internet, so someone who is in to hip hop music can come and find two or three hip hop sites," he said. "And the same with jazz, Christian, blues and all of these other genres."

AV Capital's Rubinfeld, who invests in consumer businesses alongside buyout and venture capital firms, said Shared Media's technology helps solve copyright headaches in the music industry.

"A lot of people in the music business think this is the answer," said Rubinfeld, adding that it could also be applied to books and video. "It takes care of everyone from the creator -- the writer if you will -- all the way through to the people selling it and retailing it."

P-I reporter John Cook can be reached at 206-448-8075 or johncook@seattlepi.com

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