The service will launch in partnership with Swedish online retailer Buylando, but the two music companies are understood to be in talks with UK retail partners and a UK version should be available soon.
UK company DX3 developed the technology for the new service. The company said that while US record companies have offered digital music downloads for some time, this is a first for Europe.
DX3's technology allows customers to download files in the Windows Media audio format. Customers can then pass the files on to friends, but before their friends can play the files, they will be directed to the Buylando site where they can download and pay for a licence.
Record companies have long been under pressure to develop ways to tap into the online music market, and EMI recently signed a deal with digital media software company Roxio to develop a secure and legitimate method of burning digital music on to blank CDs.
The company is also involved in MusicNet -- a joint venture with BMG, AOL Time Warner and software company RealNetworks -- to develop a licensing platform for their music.