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Published: 4 May 1999 15:05 BST
Universal Music Group, part of Seagram, is set to sell digital music online later this year.
The music giant has teamed up with US-based InterTrust Technologies, which will provide the software to deliver and protect computerised information online. Users will be able to download music files straight from the company's Web site.
Music industry analysts, Sanford C Bernstein, predict that if the piracy problem can be dealt with, online sales could account for 10 per cent of all music revenues by 2003.
A pilot site is expected to launch later this year, with the full version ready early in 2000.
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