SAN FRANCISCO, CA., July 17, 2000 - Early Napster founder
and investors, Bill Bales and Adrian Scott, today announced the formation of
AppleSoup (www.applesoup.com), a next
generation peer-to-peer network that lets content owners distribute "anything
digital" via the Internet while giving them a way to control and monetize their
intellectual property. Due to the viral nature of peer-to-peer networks, content
distribution is more efficient and cost effective, providing a safe way for
content owners to give consumers desktop access to the content they want to
consume, share and distribute.
AppleSoup will give consumers broad access to material currently not
available on the Internet-without endangering intellectual property rights-by
technically assigning rights management rules and procedures to copyrighted
content. These technical advances allow content owners to control, distribute
and even sell their content via AppleSoup's extremely scalable and viral
The peer-to-peer platform is emerging as one of the most powerful platforms
on the Internet. AppleSoup's peer-to-peer solution connects members' hard drives
to create a global, virtual library of non-infringing content. When a member
requests a specific piece of digital content, AppleSoup sends him or her
directly to another member's hard drive within a matter of seconds to retrieve
the file. The platform makes a plethora of specific, valued information
available to the masses, without the cumbersome scalability issues of the
central server model.
"Harnessing the peer-to-peer platform to distribute information over the
Internet has enormous potential, as anyone can see from Napster's meteoric user
base," said Frank Biondi, chairman of Waterview Advisors, LLC. "The reason the
entertainment community has yet to embrace such services has been a fear of
copyright infringement. AppleSoup has succeeded in finding a way to offer a
depth of content to consumers, without violating anyone's rights or intellectual
AppleSoup also announced the investors who participated in the company's $2.5
million seed round. This elite group of investors and advisors includes:
- Bill Krause, president of LWK Ventures. Krause is known as the early
founder, and former president and CEO of 3Com Corp. He also holds a seat on
AppleSoup's board of directors.
- Fred Gibbons, partner, Venture-Concept. Gibbons was the founder and CEO of
Software Publishing Corp., as well as an early investor in Yahoo!, Junglee,
Vicinity, MIPS, Trading Dynamics, Garage.com, and Fogdog. He also holds a seat
on AppleSoup's board of directors.
- Palo Alto Investors, a Palo Alto based institutional money management firm
founded by Will Edwards.
- Frank Biondi's Waterview Advisors, LLC . Biondi has also served as former
chairman and CEO of HBO, president and CEO of Coca-Cola Television, president
and CEO of Viacom, Inc., and chairman of Universal Studios, Inc.
- John Valenti, co-founder of Creative Planet, a business-to-business
Internet service resource for the entertainment industry.
- Allen DeBevoise, chairman and CEO of Creative Planet.
- Brian Pinkerton, chief science officer at Excite@Home and inventor of
WebCrawler, the Internet's first search engine. WebCrawler was acquired by AOL
and later Excite@Home.
- Yosi Amram, CEO of Valicert, chairman of ON24 and former founder and CEO
of Individual, Inc.
- Kim Polese, CEO of Marimba
"We've assembled an outstanding team of backers and advisors who believe in
what we're accomplishing," said Bill Bales, president and CEO of AppleSoup. "We
are fortunate to leverage the expertise of these technology and entertainment
leaders. It is a great fit, and one that validates content owners' support for
our copyright-friendly approach."
Founded in January, AppleSoup is the result of a longtime partnership in
cutting- edge online media. President and CEO Bill Bales, previously co-founded
Quote.com, which was sold to Lycos; he later founded ON24-recently named an
Upside Hot 100 Private Company. After ON24, Bales invested in and incubated
Napster, serving as its VP of Business Development until December, when he left
to co-found AppleSoup with Adrian Scott, AppleSoup chairman and VP of
Scott, a technological mastermind who earned his Ph.D. degree at Rensselaer
Polytechnic Institute at the age of 20, consulted for Charles Schwab, Hewlett
Packard and Bank of America before becoming an angel investor and advisor to
start-ups. Scott was the first person Bales called to get involved with
Napster's funding and technological development.
"Bill and I had a tremendous experience helping Napster get off the ground,"
said Adrian Scott. "We recognized the unstoppable force of peer-to-peer
networks. We're not doing music, we're taking peer-to-peer in new
AppleSoup is privately held and based in San Francisco, Calif. With more than
30 employees, AppleSoup is working to produce a next generation peer-to-peer
network that lets content owners distribute "anything digital" via the Internet
while giving them a way to control and monetize their intellectual property. For
more information, send email to email@example.com.