Altnet, the commercial file-swapping service that runs simultaneously with peer-to-peer networks, has inked a distribution deal with Grokster.

Altnet, the commercial file-swapping service that runs simultaneously with peer-to-peer networks, has inked a distribution deal with Grokster.

Under terms of the agreement, Altnet music and video files--which are Windows Media-secured and retail for 99 cents or less--will be among the first files listed when a user searches for a song on the Grokster network.

Content owners that distribute through Altnet pay to have their files come up with popular search terms.

The Grokster deal marks the latest distribution agreement for Altnet. The company has similar pacts with KaZaA, MetaMachine (owner and operator of eDonkey and Overnet) and Excite's My Search Toolbar.

"Our partnerships with peer-to-peer and Web services have proven that consumers will pay for and share files that have been licensed to them," says Derek Broes, executive VP of worldwide operations for Altnet.

Altnet currently distributes content primarily from independent labels; the company hopes to ink deals with the majors and the leading film studios. Toward that end, KaZaA launched an advertising campaign late last year imploring the entertainment industry to use P2P as a distribution platform for legitimate commercial content. However, no deals have been struck due to ongoing industry litigation against P2P network operators.

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