Well, it would seem after the announcement over the weekend of its new service that Qtrax jumped the gun by claiming that it already had deals in place with Warner Music Group, Universal Music Group, and the EMI Group. According to reports from these companies today, while discussions are ongoing, no agreement is currently in place. No confirmation could be obtained on the status of the Sony BMG Music Group.
Qtrax has pulled back from its initial announcement saying now that they hope to reach agreements shortly. So, things at least for the moment appear to be in limbo.
Read more here.