Snocap Cuts 60 Percent of Staff

Napster founder Shawn Fanning's music- licensing company on the rocks
By Jane Yager,  Newser Staff
Posted Oct 12, 2007 10:52 AM CDT
Promotional Napster stickers are seen at the Napster studio in this Aug. 2, 2006 file picture taken in Los Angeles, USA. Napster Inc. is expected to release quarterly earnings on Wednesday, May 16, 2007....   (Associated Press)

(Newser) – The fortunes of Snocap, the follow-up project of Napster founder Shawn Fanning, continue to wane: the company has laid off 60 percent of its workforce and appears to be for sale. A spokeswoman for the online music-licensing company says that Snocap "has received interest from several companies and is pursuing that," CNET reports.

Snocap attracted early attention because of Fanning's Napster fame, but has been in decline for several years. The company handles licensing and copyright issues to enable musicians to sell music online. Although Snocap's business is completely above board, some industry insiders attribute the company's troubles to the music industry's residual loathing of Napster and Fanning.