Free P2P music service Qtrax launched at Cannes yesterday with the support of all four major labels: Warner, Universal, EMI and Sony BMG. Or so Qtrax claimed in its announcement, a star-laden extravaganza which reportedly cost $1 million. But Silicon Alley Insider reports that Warner, Universal, EMI, and Sony are only in negotiations with Qtrax and have not settled on final terms.

Best of all: Qtrax CEO Alan Klepfisz claimed he wasn't trying to mislead anyone: "We feel we have been unfairly crucified because a competitor tried to damage us." Klepfisz didn't name names, but we're reminded of Pogo: "We have met the enemy, and they are us."

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