Cannes, France - A consortium of the world's independent record labels have joined to form Merlin, a new licensing agency that will release music from the labels that represent 30% of the world's music market to digital services.

The agency announced its formation as the "fifth major" at the Midem music conference in Cannes, France, saying it would operate as a privately-funded non-profit based in London.

Merlin also announced that it has signed its first deal with Napster creator Shawn Fanning's Snocap, and will license the independent tracks it represents for sale on MySpace and other sites that use Snocap's technology.

"This immediately opens up what is currently the most popular Web site in the world to the independent labels," Merlin CEO Charles Caldas told Reuters.

Related Links:
http://tinyurl.com/24dsmb (Reuters)
http://www.snocap.com