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Record Label Discovers File-Sharing Site Glitch

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Published: January 28, 2008

LOS ANGELES - A revamped online file-sharing service that promised to offer unlimited, free music downloads from all the major record labels hit an apparent snag Sunday after one denied it had given the service permission.
Qtrax touted in a statement Sunday morning that it was the first Internet file-swapping service to be "fully embraced by the music industry," and boasted it would carry up to 30 million tracks from "all the major labels."

New York-based Warner Music undermined that claim, declaring in a statement that it "has not authorized the use of our content on Qtrax's recently announced service."
Universal Music Group and EMI Group later confirmed they did not have licensing deals in place with Qtrax, noting discussions were still ongoing. A call to Sony BMG Music Entertainment was not immediately returned.

Justin Kazmark, a spokesman for New York-based Qtrax, declined to comment late Sunday.
Qtrax had been scheduled to make its online debut today, a day after its splashy coming-out party at the annual Midem music business conference in Cannes, France.

The development marked an inauspicious start for Qtrax, the latest online music venture counting on the lure of free music to draw in music fans and on advertising to pay the bills, namely record company licensing fees.

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