PeerApp, a company based in Newton, Mass., claims that its infrastructure solutions for internet service providers can reduce the costs for ISPs when dealing with peer-to-peer traffic, a claim that, if true, should get it plenty of business.

Many ISPs grumble about the cost of dealing with P2P traffic, and a major company, Comcast, is currently the target of an FCC probe investigating its handling of P2P traffic.

A recent agreement with Pando Networks has given PeerApp some early business, although the company may face some challenges from open-source solutions over the long-term.

As we reported in October, an industry group called the P4P Working Group is attempting to set open-source standards for P2P sharing that would also reduce ISP costs. (The group also includes technical staff from Pando Networks.)

The $3 million funding was from Pilot House Ventures, Evergreen and Cedar Fund, according to peHUB. PeerApp previously took an undisclosed amount of funding from the same investors.

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