A controversial new music download service was launched today in Madrid, pitting an upstart Internet firm against the record industry in a bid to sell digital recordings to consumers behind the labels' backs.
The new service, called Puretunes.com, lacks authorisation from music labels, but Puretunes said it is a legal service operating under licensing agreements from various Spanish trade associations representing performers and recording artists.
The site attempts to exploit a loophole in Spanish copyright law and carries thousands of songs from Madonna to the Beatles.
Unlike other download services such as Kazaa, Puretunes manages a music library and says it will pay royalties to performers.
Not surprisingly, the music industry shot back that without music companies' approval, Puretunes, which operates as a subscription download service, cannot sell songs online.
"The record labels have the exclusive right to protect their recordings. There is no loophole here," said Allen Dixon, general counsel at the International Federation of Phonographic Industry (IFPI), the global trade organisation which represents the music industry.
"It's like saying I have permission from Ringo, George and Paul, therefore, I can start printing records. No they can't," he added.
Major recording labels Sony Music, Warner Music, Universal Music, BMG, and EMI have fiercely tried to crack down on unauthorised businesses that distribute songs online.