“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,” The Associated Press reports.
“Qtrax touted in a press release 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,'” AP reports.
“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,'” AP reports. “Universal Music Group and EMI Group PLC 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.”
AP reports, “Allan Klepfisz, Qtrax’s president and chief executive, acknowledged Sunday that the deal with Warner Music had not been signed, but said he expects to reach an agreement on terms ‘shortly.'”
AP reports, “‘With everybody else, we have agreed on all terms,’ he added, noting that in some cases, deals had yet to be formally signed.”
Full article here.
Off on the wrong foot immediately and sounding more than a little shady. First you sign the deals, then you issue the press release. When you try to do it vice versa, expect some serious trust issues from all sides.
[Update: 1:32pm EST: See related from The Evening Standard: Free music downloads site in chaos as record giants pull out| News | This is London]