After reportedly spending $1 million dollars on the launch event, QTrax has been caught with their flaming pants down.

The Times Online reported today that all five of the major record labels that QTrax claimed to have agreements with (EMI, Warner, Sony, BMG, and Universal) do not have agreements with QTrax. The Times Online confirmed this information with each of the labels. QTrax CEO Alan Klepfisz is quoted as saying “We are not idiots. We wouldn’t have launched the service in front of the whole music industry unless we had secured its backing. We feel we have been unfairly crucified because a competitor tried to damage us. Everyone is very upset.” Well Mr. Klepfisz, I have to question how a competitor tried to damage you if all of the major record labels you claimed to have agreements with all say they don’t have agreements with you. If you were trying to bully them in to signing, I think you picked the wrong target.

Wow… seems like QTrax will die before it even lives!

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