Three major record labels have agreed to licence their catalogues to a new peer-to-peer file sharing network called Peer Impact Network that is scheduled to launch in the first quarter of 2005.

Peer Impact is being developed as a legal file-sharing network by U.S.-based Wurld Media. The four record labels participating in the venture are Warner Music Group, Sony BMG Music Entertainment and Universal Music Group. Discussions are ongoing with the fourth major label, EMI.

Peer Impact Network is a proprietary business model that permits only licensed music or music that is in the public domain to be distributed over its network.  Other forms of digital content, such as video, will also be distributed.

However, details concerning the software and pricing are still to be released. Right now, the network is undergoing internal testing. The record labels have not issued any statements regarding their participation in the project. Wurld Media chairman is Greg Kerber.

Recently, MBC News reported on a similar project called Mashboxx involving Sony BMG and the Grokster file-sharing network. In addition, Universal Music Group is reported to have licensed its music to SnoCap, a legal peer-to-peer technology being developed by Shawn Fanning. Mr. Fanning created the original Napster software.

(Abstracted from Three Big Music Labels Sign Up for Peer Impact, Reuters, November 23, 2004; 3 Music Companies Will Use Online File-Sharing Service, The Associated Press, November 25, 2004; and Universal Braves P2P With SnoCap Deal, Digital Music News, November 12, 2004)