More details are emerging about Global Gaming Factory X's plans for the Pirate Bay following yesterday's announcement of their $7.9 million purchase of the torrent site.

Already, GGX said they would find a way to compensate copyright holders whose works are traded on the site.

Now BusinessWeek reveals that the Pirate Bay plans to raise money by turning the spare bandwidth of their users into a commodity that they will sell to ISPs like Comcast and AT&T.

Business Week reports:

GGX CEO Hans Pandeya, "has hatched a groundbreaking scheme to bundle together the collective Internet bandwidth of Pirate Bay's users into a giant new peer-to-peer network. Then, he'll resell that broadband capacity on an ad hoc basis to Internet service providers—companies like Comcast (CMCSA) or AT&T (T)—that are in need of a quick injection of cheap bandwidth."

Pandeya says that the scheme will cut bandwidth costs by ISPs by, "more than a half."

When a user joins into the plan, they will also earn money for sharing their spare bandwidth with the Pirate Bay Network. They can then cash out or use the money to pay to download copyrighted works, which is Pandeya's other major money-making plan for the previously free but illegal website.

We give the idea an A for creativity -- we'd swap bandwidth for free movies -- but BusinessWeek's Mark Scott sees some flaws in the plan:

Pandeya will have to build a network of users big enough to make his bandwidth resellable--no given if the Pirate Bay goes legit.



Users may violate their own ISP contracts by reselling their bandwidth to another network provider.

Third, in some cases, The Pirate Bay will likely be selling bandwidth back to its original owners--a Comcast user's cable modem connection back to Comcast, for instance--and it's unclear if ISPs will really be willing to pay for the privilige.

Lastly, if Pandeya can navigate all of these issues and turn The Pirate Bay legit, it's worth nothing he'll be the first to succeed where Napster and Kazaa, two other big file trading networks that tried to make the leap, failed.