Web Music Firm FullAudio Wins 2nd Publishing License

British music giant EMI Group has awarded a publishing license to subscription-based Internet music service FullAudio Corp., ratcheting up the record industry’s race to develop alternatives to the popular Napster file-swapping network.

The license, expected to be announced today, is the second in two weeks to be granted to Chicago start-up FullAudio, which plans to offer downloadable songs for a flat monthly fee of $5 to $15. The encrypted songs can’t be copied or recorded onto a CD, according to the online firm.

The music publishing division of German media conglomerate Bertelsmann provided FullAudio with its first publishing license.

EMI controls a substantially larger catalog, including compositions by musician David Bowie and star producer Rodney Jerkins. The EMI license could more than double the number of songs on FullAudio’s service.

Even with its publishing licenses, FullAudio still can’t launch its service until it wins another set of licenses from the record labels covering the actual recordings.

Such a pact could be near. EMI’s recorded music division, which releases music by such acts as Garth Brooks, Janet Jackson and Black Rebel Motorcycle Club, is in negotiations to sell a license to FullAudio and could sign a deal by the end of the week, sources said.

The arrangement could create a blueprint for licensing other Internet music services and put FullAudio far ahead of the two other major online subscription services, MusicNet and Pressplay.

MusicNet is backed by Bertelsmann, EMI and Warner Music Group. Pressplay is financed by Sony Music and Universal Music Group. Neither service has yet secured the necessary licenses to start operating.