The file-sharing system, based on a rogue service launched by Qtrax more than four years ago, runs ads while users search for tracks. It prevents files from being burned to disc and counts the number of times a track is played to calculate payments to rights holders.
Qtrax says it is in talks with the big four record labels, Sony BMG, Universal, Warner and EMI, to have their back catalogues made available for download. It is also said to have brokered launch advertising deals with McDonald's, Burger King, Samsung, Ford and Microsoft.
Qtrax, which is based in Melbourne, Australia, was originally launched in 2002 following the collapse of Napster, but shut down a few months later to avoid legal action.