The Head of Japan’s 4th Largest Web Company Arrested By Hosting Porn

Jiji just reported[J] that the Kyoto and other police arrested the president of Osaka-based Home Page System by allowing FC2 users upload obscene videos. Ex-president and a brother of the FC2 founder is also under arrest.

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Home Page System has been claiming themselves as a PR company for FC2, one of the largest Japanese web service which is running vast variations of user-generated services including bulletin board, video sharing, blog, social network, etc. According to Alexa, FC2’s traffic is ranked at 4th among all Japanese web services, only after Yahoo! Japan, Google Japan and Amazon Japan.

FC2 is well known by claiming to be an American company based in Las Vegas, therefore the contents are not restricted by Japanese law. The Las Vegas address is a rental address and it has been suspected years that the Home Page System is the substantive owner of the site. Until recently, the trick seemed working and most of illegal contents uploaders had been gathering to FC2, and selling micro contents (even they do not own copyrights) to vast Japanese visitors.

Last September, the Home Page System was raided by Kyoto Police by letting its user broadcast live porn programs. That raid did not change much the services on FC2.

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[Update] FC2 stated its position on the official blog [J] that the arrested person is not the president of FC2 but the president of the outsourcing developer company.

Veoh Likely Aquired By Japanese FC2

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First pointed out by someone on Hatena Anonymous Diary, online video service Veoh‘s ownership seems to be handed over to FC2, a huge but scarcely known Japanese everything-portal. FC2 sent a mail to users, soliciting to use Veoh, as s/he wrote.

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Veoh’s copyright on footer now has “FC2”. According to the Internet Archive, this copyright was changed between June 19 and 26, from “Qlipso Media Networks Ltd.” to “FC2”.

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Qlipso Media Networks Ltd. is an Israeli company who announced its Veoh aquire on April 2010. Qlipso’s company site is showing an error page.

Vaoh’s “About Us” page still has Qlipso name but the end of the text, there is FC2 name and contacts.

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This Las Vegas address is just a mailbox, FC2 says it is an U.S. company but it is not believed much that it really operates in there. Its “PR agency” company exists in Osaka and their very few releases come from that company. FC2’s traffice is Japan’s 6th largest, according to Alexa (I know what Alexa is. But it is not only Alexa ranks FC2 in top 10 for a decade), and has almost all type of user-generated contents services. FC2 had purchased other video services like SayMove and Himawari-Douga before.

Ning-like “My Own Social Network” Service So-net SNS Gives Up Their Business

So-net SNS, one of the largest free hosting of user generated social networking services in Japan, announced [J] their termination of service in June.

# SNS stands for “Social Networking Service”, which is often used in Japanese when mentioning Mixi, Gree, etc. Some people even use SNS without knowing what it came from.

So-net, a portal site company in Sony group, began So-net SNS in June 2006 by using Japanese, PHP-based open source social networking service package OpenPNE.

In Japan, there are other competitors who provide free social networking service hosting such like FC2 SNS, Social Park, Nanoty, People SNS, etc. But overall, most people seem comfortable with community feature in Mixi.

See Also:

So-net SNS beta launch news on CNET japan in 2006 [J]