UPDATE FROM OUR RUBBER CHEQUE DEPARTMENT

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Continuing on the subject of failed ad-supported digital music models, if you’ll recall, we last heard from my hero, the Baghdad Bob of digital music Allen “Honest Al” Kelpfish (also referred to by his acolytes as “AK”—don’t you just love that—it sounds so moguly) in mid-August when CNet broke a story about the latest in a long string of lawsuits and judgments against Qtrax.

mid-August when CNet broke a story about the latest in a long string of lawsuits and judgments against Qtrax.

On August 17, “AK” was reached for comment by CNet reporter Greg Sandoval regarding a suit filed in NY State Supreme Court by Qtrax technology provider Millenium Information Technologies. (This story ran on the heels of Sandoval’s prior report of a lawsuit filed by database giant Oracle over a $1.8 million rubber check issued by “AK”). The CNet story read as follows:

As for Millennium, Klepfisz said there was more to the story than what was in the court documents. Court Stuff.001

By and large, all our vendors have done an exceptional job,” Klepfisz said. “There are occasional exceptions. We feel we have a basis for this action (with Millennium).”

Klepfisz’s statement suggests that Qtrax was unhappy with the quality of service it received from Millennium. There were, however, no complaints from Klepfisz when he responded to Millennium’s demands for payment, documents show. iapps.courts.state.ny

Next wire I believe is Wed. I will confirm,” Klepfisz wrote Millennium representatives, who filed copies of the e-mails with the New York court. “I think by early July we can clear whatever is deemed to be outstanding.

Klepfisz also wrote: “Sorry for the lateness. Will be in your account first thing in the morning. Another installment Tuesday. Thanks.

One February 2008 payment that Qtrax sent Millennium for $26,250 “was returned, and not honored by the Defendant’s financial institution, citing ‘insufficient funds.‘”

The very next day, Aug. 18, “AK” wrote the following in a deliciously paranoid blog post:

We have a somewhat dated lawsuit going on with a Company called Millenium. They provided services for our servers before our aborted launch at Midem. We paid them some. And frankly struggled doing it, at the time. I can’t say more than that most of our suppliers have been wonderful. There are sometimes, exceptions. The legal system can decide if this is one.

Well, “AK” was right. The legal system did decide and with no help from him. Not only did “AK” not bother making a case against Millenium’s claims in court, he didn’t even bother to show up! So last week the Court Clerk entered a default judgent to Millenium for $147,634.72 plus $15,977.75 in interest.

Good luck collecting, Millenium. I do have some very good advice for you though: if “AK” decides to settle, don’t take a check.

Other users also read:

Qtrax Relaunching? What About all the Lawsuits it is Facing? TMV Drills Down on Qtrax
Qtrax Update: More Lawsuits & Judgements, No Portability Launch…
Qtrax CEO Tells The Truth Or At Least The Courts Do

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Filed Under: Wide Angle

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About the Author: Wayne provides biting, hard edged, entertaining, humorous, sometime satiric but always provocative commentary on current events and trends in the music industry.

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  1. The REAL Jessica says:

    Apparently, I’m a whore according to luckybleu (ROFLMAO). I think he might need to look up the definition since it’s way more applicable to him as he goes around Twitter and random forums/blogs praising AK and Qtrax as the “next big thing”. Fortunately, no one is foolish enough to buy what he’s trying to sell.

  2. [...] Links to previous TMV stories regarding Qtrax are provided below: Update from our rubber cheque department [...]

  3. The REAL Jessica says:

    Just wanted to add one more thing. Qtrax is like the answer to the question nobody asked. Consequently, no one cares what it is.

    I’ll be watching closely next week to see if their October 29th launch was yet another one of their hollow promises. Given the lack of press leading up to it, my bet is on another failed launch.

  4. The REAL Jessica says:

    Wayne,

    Does any of this actually come as a surprise to you anymore? I know it doesn’t to me. He’s nothing more than idle talk and idle promises, as dictated by past events.

    As I’ve already said many times before, Qtrax is a doomed business. I could only envision any success on their part had they come up with this idea and marketed it about 10 years ago. Nobody wants DRM music anymore – hence why AmazonMP3 and iTunes have abandoned it, with more stores following suit. Also, nobody wants to sit through ads on the internet anymore either – hence why most, if not all, antivirus software comes with ad-blocking features now too.

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