Music Labels Say There's no Deal With Qtrax

Their flat no-backend site with an open "imgs" directory containing
nothing but images from the four pages that are up, the beta tag, the
low capacity of their server, and not even meeting the deadline they
set for themselves after five years all scream "Failed internet startup"

Here's what I've gathered, and I should point out that I know virtually
nothing about financial markets, filings, etc. For starters, Brilliant
Technologies tried to use a struggling Georgia-based flooring company
called The Flooring Zone (a failed laminate flooring chain of all
things) as a shell to get an OTCBB securities listing. That deal fell
through and Brilliant Technologies is still listed on the Pink Sheets,
a high-risk securities listing for developmental and small ventures
that aren't required to submit filings to the SEC or be audited. They
can't get on the OTCBB themselves because they have been late
submitting three filings with the SEC, hence they tried
(unsuccessfully) to hoodwink the poor folks at The Flooring Zone, who
need cash desperately, but not desperately enough to deal with these
guys.

The filings they have made consistently state that they have "entered
into" deals with EMI, WMG, and SonyBMG (the implication being copyright
holders, not publishers), though they also claim to have made deals
with majors' publishing rights arms. But the next paragraph says that
all that is necessary to launch is "...finalizing Agreements with the
Major Labels which is expected in the near term." And they don't even
claim to have a deal with ASCAP, BMI, and SESAC. Then much later in the
filing they list the actual agreements, all of which deal solely with
music publishing rights, not with rights to distribute copyrighted
content - and they are in default on some of the agreed payments.

But by far the best part is that their Director (accountant?) Chai Ong has an MBA from "Canada."

Apparently the only 30 million this company will ever be associated with is the $30 million they've lost since 1999.

The world's biggest music companies, including Warner Music Group Corp and Sony BMG, denied that they have agreed to license songs for a free download service that was launched by Qtrax on Monday.
Qtrax told Reuters and other media outlets last week that it had deals with the major labels representing about 75 percent of all music sales, to let users download songs for free in a new service to be supported by advertising revenue.
But by Monday, Sony BMG Music Entertainment and Warner had publicly denied that they had agreed to back the new Qtrax service.
A source close to Universal Music, the largest of the group, said it also had not signed a deal for the new Qtrax service and is still in discussions.
And a source close to EMI Group said that while its song publishing unit has an agreement with Qtrax, its recorded music arm, EMI Music, does not.

A distributor of Internet file-swapping software has abruptly postponed the launch of its free online music service until it can finalize music licensing deals.  
The ambitious, ad-supported music service promised unlimited music downloads with the blessing of the major recording companies.  
But that claim began to unravel just hours before Qtrax's scheduled debut today when Warner Music Group issued a statement that it had not authorized the firm to distribute its artists' music.