Qtrax has launched a new file-sharing music service that offers free unlimited downloads from various major labels including Universal Music Group, Sony-BMG Music Entertainment, EMI Group and Warner Music Group.
The official announcement was made Sunday that the service was the first of its kind to offer free file-sharing songs that can be downloaded for free with the music industry onboard.
However, Qtrax was in for a rude awakening on Monday when three of the major labels cited by it claimed they had no such deal in place.
Universal, Warner and EMI all said they have not authorized the use of the content on Qtrax’s file-sharing network and never agreed to free unlimited music downloads. Warner said the official deal was never formally signed.
Qtrax said that it would use advertising revenue to pay the license and royalty fees to the music labels. The startup company was launched after the closure of Napster but faced a site shut down in 2002 amid fears of potential legal trouble from copyright holders.
Qtrax is now trying to re-launch but it appears to have hit a legal snag at this moment. The file-sharing company said that it was confident the site would overcome all hurdles.
If Qtrax manages to get the major record labels to fully comply, it would be far bigger than Apple iTunes since its catalog would be far bigger.