BMG In Talks With Grokster

According to a report by Rueters news srvice "Los Angeles-based Grokster is in early talks with major record label Sony BMG to create a legal music service, according to a Reuters report. "I’m not negotiating myself, as Sony BMG chairman, but I know that some staff members are at the very beginning of talks with Grokster," Sony BMG chairman Rolf Schmidt-Holtz told Reuters. "We are noticing that there is huge demand for services like that, and our intention is to transfer this demand into legal channels. Only then it would make sense for us." Schmidt-Holtz, who oversaw BMG’s merger with Sony earlier this year, added that he knew of only one meeting so far between the two companies, and was not sure which side initiated the negotiations."