London - Virgin Media has suspended plans to launch what would have been the first legal peer-to-peer service from an Internet service provider, after at least two of the major labels, Universal Music and Sony Music, demanded their music not be included, The Register reported.

Powered by Playlouder MSP, the "Virgin Music Unlimited" service was apparently set to debut in several weeks, and allow users to freely upload and download songs while paying the ISP a fee for the privilege that would then be split among rights holders.

The two major labels reportedly made late demands that subscribers of the service be prevented from sharing songs they had downloaded with non-subscribers.

Related Links:
http://www.theregister.co.uk/2009/01/23/virgin_puts_legal_p2p_on_ice/

http://snipurl.com/as49g (PaidContent)

http://playlouder.com

http://www.virginmedia.com