Crenk

Qtrax, the P2P music service that about four months ago claimed to have signed deals with all four major record labels, has finally signed their first major label. Universal Music Group are the first major label to sign up to Qtrax. This is the company’s first major label licensing deal, although it does have several publishing agreements with the likes of EMI Music Publishing and Sony/ATV, among others.

The service itself allows users to share DRM protected music. The DRM is obviously there to keep the music off other networks, but at the same time is helps Qtrax to establish the play counts in which they will use to pay royalties to artists and labels. Qtrax also has display ads in certain sections of the process, and users have the option to purchase music and merchandise through the service. Hang on one sec, they are a startup with an actual business model that might work, thats crazy!

Qtrax will be sued before they even launch if they arent careful. Qtrax is a music P2P service that is supposed to have launched a few days ago, but the site is online and no one can download their software. Plus, it has been reported that Qtrax dont have agreements with WMG and EMI when they have specifically announced that they have. So strange!

The LA Times reported that Qtrax has not signed with EMI or Warner Music Group and they are only close to coming to terms with Universal. So why are they going around saying they already have these contracts? I really think this product could be a lost effort even before it launches.