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Qtrax is a digital music service aimed at providing high-quality downloads via MAC and PC. The New York based company now holds license agreements with a number of major and independent labels. CEO Alan Klepfisz has stated that maintaining compensation for copyright holders while capturing part of the 95 percent of the market that continues to download illegally is the ambition behind Qtrax’s current model.

Business and operations
The QTRAX client has been created on a Microsoft Silverlight Platform. The service is supported purely through advertising, with no registration or download fees. The Qtrax management and advisory team has included CEO Allan Klepfisz, co-President and Chief Strategy Officer Robin Kent, Lance Ford, and former RIAA Chairman Jay Berman. On May 27, 2010, it was announced that Robin Kent was leaving the company.

QTRAX has a new Microsoft Silverlight version allowing music fans to download free music from three of the major labels – EMI, Sony Music and Universal Music Group EMI spokesperson Dylan Jones confirmed the deal stating that a short-term agreement with QTRAX has been signed. QTRAX offers a large catalog of music from the three major labels for free download along with band pages complete with links to YouTube videos, Ticketmaster ticket searches, Amazon purchase links and a Wikipedia link. Fans are able to create playlists and send music recommendations to friends QTRAX is now (2011) live in eleven countries including the United States, Argentina, Chile, Colombia, Canada, Australia, New Zealand, Fiji, Singapore and the Dominican Republic.

Contracts
As of March 20, 2009, the following is a list of the currently signed contracts:
 * EMI Music Publishing
 * finetunes
 * Sony/ATV Music Publishing
 * TVT Records
 * Warner Music Group
 * EMI Music North America
 * Sony BMG Music Entertainment

On 6 May 2008, UMG (Universal Music Group), the largest of the record labels, signed a deal with Qtrax. Qtrax stated that the entire catalogue of songs from artists under the Universal label will be available on Qtrax. Qtrax also has an agreement with the Chinese search engine Baidu, where Baidu will send music related querries to Qtrax from its entertainment portal and music site.

Global release
As of late 2009, the company has missed all of its announced North American launch dates. On October 12, 2009, Qtrax announced dates for its intended rollout in nine countries in the Asia Pacific, but this did not take place.

As of 2011, the company has successfully launched in eleven countries:
 * United States
 * Canada
 * Australia
 * New Zealand
 * Fiji
 * Hong Kong
 * Argentina
 * Chile
 * Colombia
 * Mexico
 * Dominican Republic

Criticism
On March 18, 2008, Italian digital music website MusicBlob found that apparently several CD compilations of the Ultra Rare Trax series, a pirate CD series circulated on CD during the 1990s and dedicated to artists such as KLF, Kraftwerk, Duran Duran and others, are listed in the Qtrax catalogue as if they were legitimate release.

It has been reported on the James Kilgour Blog, that Qtrax is currently being sued by Oracle USA, in a lawsuit filled in California on the 21st.

The company announced its launch of its service in nine countries in January 2008, at the music industry's global conference MIDEM in Cannes. Qtrax claimed to have obtained licenses to distribute the music of the big four music record labels: EMI, SonyBMG, Universal Music Group and Warner Music Group. The Qtrax CEO, Allan Klepfisz, noted that his company's web site was being accessed by 22,000 users per millisecond, and 25 million songs were available. Lance Ford, Qtrax sales manager, announced that company's advertisers included Ford Motor Company, H&M, Burger King, and Boost Mobile. The multi-million dollar launch included concerts by LL Cool J, Don Henley of the Eagles, and James Blunt. In the days leading up to the announcement, the stock price of Qtrax's parent company, Brilliant Digital, reached a 52 week high. However, within days, it became clear to the media that all of the material claims made by the company were untrue. It did not have licenses with any of the four major record labels, its music would not play on Apple iPods, it did not have the advertising customers it claimed, nor was its software ready for launch. Analysts soon pointed out that their claim of 22,000 users per millisecond would mean that the company had over 79 billion users, more than the entire population of earth, and that the supposed 25 million digital tracks available, around four times what Apple iTunes then offered, exceed the number of sound recordings that had ever been digitalized in the history of the world at that time.

When pressed to explain the events, Qtrax stated that they felt they had "been unfairly crucified because a competitor tried to damage" them, and that they did "have industry agreements including with the major labels." although the "ink hadn't dried" on some of the deals. Qtrax also announced that it still planned to deliver on its promises "within months.".

In January 2008, the internet policing company, Web Sheriff notified Qtrax that regardless of whether the music companies supported the service, individual artists would have to give their approval. It was also reported that many of the images on the Qtrax web site were unlicensed.

The files utilized Microsoft's Windows Media digital rights management technology, restricting usage of files. Music downloaded from Qtrax could only be played within the Qtrax client and could not be transferred to a portable media device.

The service was only offered to US residents for a brief beta period, but Qtrax has announced it will soon be offered in the Asia Pacific region.