Qtrax Loses Tracks

In the how-not-to-launch-a-business category we have Qtrax, an ad-supported peer-to-peer music download network that had supposedly signed deals with all four major record labels and was launching today with a catalog of 25 million songs. Only it doesn’t seem to have those deals with the record labels after all.

While Qtrax CEO Allan Klepfisz assures the world that this is all a misunderstanding and deals would be signed soon (and I was able to find a few press releases and stories indicating that both EMI and Universal Music Group had signed some kind of deal with Qtrax), the site doesn’t have 25 million songs and so far appears to have scored little more than some incredibly negative press.

It’s only the first month of the year, but this should certainly be a contender for the Business 2.0 Fortune 101 Dumbest Moments in Business for 2008.