First legal P2P music site hits a major roadblock

Qtrax, a startup site touted as the world’s first legal and free P2P music file-sharing service with more than 25 million songs in its catalog, has taken a nosedive from revolutionary to a total wreck.

After excessively spending £500,000 or close to $1 million to promote this ad-supported music download service, the company forgot to seal one crucial deal – the support of the record industry. The four major record labels EMI, Warner, Sony BMG and Universal all informed Times Online that there no firmed up agreements with Qtrax. Universal and Warner both confirmed its ongoing negotiations with the startup site.