UPDATE 2: Qtrax Launch Delayed As All 4 Majors Deny Deals

UPDATE 2:

Qtrax is now live, but without any downloadable content until deals with the majors are completed.  After the jump you can read the full text of Qtrax latest attempt at spin. (Why would a label want to license to these people?)

Most of press continues to skewer Qtrax over the botched launch though a few consider it a planned stunt. And despite the inability to download tracks, the payer and interface are getting good reviews.

The splashy launch of Qtrax promised for midnight has been delayed but will launch "soon" according to a spokesperson for the company.

Meanwhile all four major label groups have publicly stated that they have no real deal Qtrax.  But Qtrax CEO Allan Klepfisz seems unfazed  telling CNET News.com that his company may not have agreements "written in stone," but that it doesn’t mean Qtrax is without the labels’ consent. "This is a tempest in a tea cup," Klepfisz said. "It’s true, some of the deals may not be locked in ink, but it’s also true that we had understandings. In some cases, we had endorsements."

Klepfisz said Qtrax Web will probably debut with music from all four majors despite comments from some labels to the contrary  "…Nobody has threatened us with a thing," Klepfisz said. "We plan to release music the way we said we were."

• Details of denials from all four major label groups
• More about Qtrax
• The inactive Qtrax download page
• After the jump, the latest press release

QTRAX V.2 BETA LAUNCHES AT MIDEM—SERVICE SEES 61,000 UNIQUE USERS PER HOUR

MIDEM CONFERENCE, FRANCE and NEW YORK—January 28, 2007—QTRAX (www.QTRAX.com)—the world’s first free and legal peer-to-peer music service announced that at today’s V.2 Beta launch, its ground-breaking service had approximately 61,000 unique users per hour (between 7am and 1pm EST). This translates to approximately 1,464,000 unique users per day. QTRAX believes that a significant percentage of users were unable to access the site due to this massive demand and has now dramatically increased its download capacity.

    "The response to the service is clearly unprecedented [ed. note: I’ll say!]. We launched at MIDEM, the leading music industry conference, precisely because of the degree of support we have had and continue to enjoy from rights holders," said QTRAX President and CEO Allan Klepfisz. "We believe the exact nature of that support will be publicly clarified within a very short time. As the world’s first free and legal P2P service that has chosen to spend 4.5 years on licensing and not to violate IP rights, we have decided that we will provide activation keys shortly upon final execution of all pertinent contracts."

    In the meantime, users will be able to enjoy all other functionalities of the QTRAX browser including importing and playing their existing music, browsing the vast and rich content, purchasing artist merchandise and tickets, and, for the first time, enjoying a fully integrated browsing and music experience.

    The activation keys will enable users to experience full QTRAX V.2 Beta functionality, including search, download, access content, and play.

    QTRAX has created a dynamic new music distribution model that represents a paradigm shift in the way people consume music, how the industry can monetize their catalogs and how artists get paid.  The application download is available immediately at www.QTRAX.com

    About QTRAX

    QTRAX (www.QTRAX.com) is the world’s first legal and free peer-to-peer music service.  Showcasing an innovative ad-supported downloading model that easily directs revenue back to artists and rights holders, QTRAX is the first P2P to be embraced widely by the music industry.  QTRAX is a subsidiary of Brilliant Technologies Corporation (OTC:BLLN.PK), a publicly traded technology holding company.