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From mogleyb@aol.com
Subject Dear Napster What Were We Thinking?
Date Sun, 27 Jan 2008 01:11:55 -0500

[Part 1 text/plain us-ascii (2.8 kilobytes)] (View Text in a separate window)


Legal file-sharing service touts free music with ads

By Yinka Adegoke 39 minutes ago

NEW YORK (Reuters) - Qtrax, a new legal online file-sharing service 
that allows fans to download songs for free, said on Sunday it will 
launch with 25 million to 30 million copyrighted tracks with backing 
from major labels.

The free service will be funded through advertising revenue that Qtrax 
will share with the music companies.
Qtrax executives said the company's digital rights management 
technology will count the number of times each song has been played in 
order to fairly compensate artists and rights' holders, without 
restricting consumer use.
The company has focused on ensuring that its network is free of spyware 
or adware such as pop-ups common on many peer-to-peer networks to 
improve the customer experience.

"If you want people to come to a legal environment it has to be 
demonstrably better," said Chief Executive Allan Klepfisz.
Peer-to-peer services, which allow fans to exchange digital media files 
quickly and easily, have been controversial for media companies because 
the technology enables illegal distribution of copyrighted material.
Music companies have been badly hit as fans flocked to P2P services 
like Limewire and e-Donkey to download millions of free songs rather 
than buy CDs or legal downloads from Apple Inc.'s iTunes digital store.
The music trade organizations have used litigation with varying degrees 
of success to try and close down P2P services they argue are promoting 
piracy.

Klepfisz said the privately held Qtrax will help music companies by 
allowing fans to achieve a balance between the ease of use of a free 
P2P service with the need to compensate artists and songwriters.

Qtrax has deals with all four major companies including Vivendi's 
Universal Music Group, Sony BMG Music Entertainment, Warner Music Group 
and EMI Group.
To take advantage of the free but legal service, the user will need to 
download the Qtrax software which displays adverts while the user is 
searching and downloading songs.
The site will feature special sections including one called 'Last 
Night' where users can search for newly added tracks from live concerts 
that were recorded the night before. It will also feature music videos, 
artist documentaries, interviews, album reviews and biographies among 
other features.

Qtrax is not the first service to offer free songs for download with 
advertising support. Last September, SpiralFrog launched an 
ad-supported free service with music from just one of the major record 
companies Universal Music. It is still in talks with other labels.

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