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TMV Exclusive: Qtrax Shareholders Threaten Action


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After having yet again blown another launch date yesterday, Qtrax has begun to raise the ire of several of their current shareholders, some of whom have asked for TMV to publicly chronicle a litany of broken promises and false or misleading statements made by the company and its CEO, Allan Klepfisz.

It’s a rather long list, so we suggest that you make yourself a nice cup of tea before settling in and reading this.

Let’s travel back in time to late January 2008 in Cannes France. The following claims are direct quotes from company press releases, blogs written by and interviews with Allan Klepfisz.


To begin, here is evidence that Qtrax CEO Allan Klepfisz stated that Qtrax had launched that very morning (when is this?) (50 seconds in -http://www.youtube.com/watch?v=_Yz_wJJn-SY).


It did…kind of… but with no music whatsoever. Just some crapware Songbird player. Not much of a music service.


Then, an AP article on Sunday, 27 January 2008 reported, “We’ve had a technical breakthrough which enables us to put songs on an iPod without any interference from FairPlay,” said Allan Klepfisz, Qtrax’s president and chief executive. Klepfisz declined to give specifics on how Qtrax will make its audio files compatible with Apple devices, but noted that “Apple has nothing to do with it.”


The fact is it never happened and anyone familiar with Apple knows that it never will.


Next, according to another AP article on 16 February 2009, “Qtrax, an Internet company that promises the first free music download service paid for by advertisements, said Wednesday it had signed up the last of the four major recording companies and plans to relaunch next month.” Klepfisz was quoted as saying, “We had a somewhat embarrassing launch. Now, we clearly do want to make a lot of noise.”


What really happened was a US-only version was briefly launched in mid-April and was out of service approximately 2 months later. Music downloads were no longer made available and it has been that way ever since.


Next are a series of updates from 16 June 2009 in which Corporate Update posted on Qtrax.com:

Independent Blogs
Following are editorially independent blogs and Qtrax do not necessarily endorse the views of the authors but Qtrax do appreciate their interest in & support for Qtrax and encourage users to check out these blogs.



Interestingly, when Klepfisz blogs (he has twice since 16 June), it’s on qtrax.wordpress.com. Someone who calls himself “qtraxer” runs the blog. TMV has discovered that “qtraxer” is David Musolf who, according to the 16 June corporate update, “has been appointed Global Head Ad Sales” at Qtrax.


Corporate Update from 16 June 2009 posted on Qtrax.com:

Expansion of Music Catalogue
Qtrax will be more than doubling its vast library of songs on or before July 6th, 2009.


Did not happen because…..


Corporate Update from 16 June 2009 posted on Qtrax.com:

Official Global Launch
Qtrax will officially launch in the United States and in at least 6 other countries with version 1.01 on July 22nd, 2009.


Never happened. Oops! He did it again. Missed another one.


Corporate Update from 16 June 2009 posted on Qtrax.com:

Qtrax will be launching an extensively enhanced product. Features include:
Compatibility with Mac, Linux & PC
Ability to transfer songs to a wide range of mobile phones & mp3 players
Elimination of the need for cumbersome installation
Further developed social networking features
Nope. Hasn’t happened since there never was a 22 July launch!
Corporate Update from 16 June 2009 posted on Qtrax.com:
On or before July 6th, 2009, Qtrax expects to announce new record company & publishing licenses.


No announcements.


Corporate Update from 16 June 2009 posted on Qtrax.com:

New round of funding
The Company expects to successfully complete a new round of funding during June, 2009. Details will be made available at the time of completion.


No funding round was ever announced.


The final misleading Corporate Update from 16 July 2009 posted on Qtrax.com:

Quarterly & Annual Filings
The company expects to file up-to-date audited accounts during July, 2009.


No SEC filings have been made since March of 2008.


From Qtrax CEO Allan Klepfisz on qtrax.wordpress.com blog, 18 August 2009:
Of course the central fact that everybody has wanted to know & has had an overdue right to know is : When are we going to get the show on the road? When is the launch date? And the corollary question: Is that really the date? Is that set in concrete? Is it reliable? Well, I had delayed providing the launch date having learnt from unexpected delays that have caused us all angst in the past. But yesterday we were ready. The answer of course to “when” was October 29th, 2009. That’s it. It won’t change. We announced it “formally” with good reason. Some will criticize it as too far in the future. What can I say? Getting it exactly right (not to mention monumental) is paramount. After 7 years, what’s an extra few weeks.

So that is the “when”.The “where”? We will be initially launching in 9 Asia Pacific countries- China, Hong Kong, Taiwan, Philippines, Indonesia, Singapore, Malaysia, Australia & New Zealand…

But we won’t be nobbled. And we will launch. On October 29th, 2009. The disbelievers should continue without wavering. That will make our moment sweeter. The underminers can continue to undermine. But we are going to strike back. By exposing. By protecting. And if necessary, by utilizing the legal system. And for the 99% of well intended individuals, we will give you reason to celebrate. It’s time for the dogged to deliver.


Did not happen.

Instead, the following was issued in a press release after close of trading on 28 October announcing new and different launch dates. It appears that none of Mr. Klepfisz’s statements are “immutable”.

NEW YORK, Oct. 28 /PRNewswire/ — Qtrax (www.qtrax.com) today announced its rollout schedule for its free and legal music download service in the Asia Pacific region. Qtrax will launch as follows:
Australia & New Zealand- Nov 5th, 2009
Singapore- Nov 12th, 2009
Malaysia- Nov 19th, 2009
Philippines- Nov 26th, 2009
Indonesia- Dec 3rd, 2009
Hong Kong- Dec 10th, 2009
China- Dec 17th, 2009
Taiwan- Dec 24th, 2009
Qtrax intends to continue its roll out to other territories from the beginning of the New Year.


In a company press release on 31 August announcing a partnership with MOL Media of Malaysia, Klepfisz said: “We expect to be announcing partnerships throughout Asia in the period prior to launch…”


This never happened because the promised 29 October launch was not met.

We haven’t even mentioned the plethora of bounced cheques, lawsuits and financial judgments that have been entered against the company over the last several years. That all has been well-documented elsewhere.

Additionally, record company sources tell TMV that they have heard nothing of any Qtrax partnerships with Chinese companies, which is mandatory for foreign companies to do business in China.

Clearly Mr. Klepfisz has maintained a very casual relationship with the truth. The Brilliant Technologies (BLLN.PK. Parent company of Qtrax) shareholders who have contacted TMV have finally had enough and indicate that they are joining together to petition the US Securities & Exchange Commission to investigate Brilliant Technologies. It looks as though there may be a mob of angry shareholders with pitchforks and torches assembling soon outside the Madison Avenue condominium that fronts as Qtrax world headquarters, as well as Klepfisz’s New York residence.

TMV will keep you informed of any and all new developments.


  • Wayne Rosso

    Wayne Rosso has worked in music and technology for decades. He has worked with such artists as Aerosmith, Bee Gees, Crosby, Stills & Nash, Public Image LTD., Beach Boys, Phillip Glass, Fleetwood Mac, Rick James, New Kids on the Block, Slash, Evanescence and scores of others.


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