P-2-P network reports record companies to the OFT

"Grokster, the US music-swapping network that came to prominence in the wake of Napster's collapse, has turned the tables on the major music labels by reporting them to the office of Fair trading." (here in the UK)

The site claims record companies are guilty of "unfair business practices and restraint of trade" by refusing to discuss ways in which they could legalise its service.

"It's clearly a cartel in violation of competition laws. We've tried to negotiate with the record labels. They leave us no choice but to protect consumers and ourselves from these grievous practices," Mr Rosso told trade magazine New Media Age.

The OFT said it was investigating the claim and had asked Grokster to provide further material to back up its claims.

I love this, the record companies are getting a taste of their own medicine - threat of looming disaster, uncertainty and fear... Perhaps the threat of action against them may help persuade them to change their behaviour. On another note, perhaps the Guardian will also stop 'reporting' the p2p phenomenon in such a blatantly one sided nature. Their reporting to date, with little featurettes about the major 'threat' to the labels has been frankly embarassing. This from a daily subscriber to the print edition.

good luck Grokster