The filesharing network, Grokster, has reported the major music labels to the Office of Fair Trading, claiming that they are guilty of "unfair business practices and restraint of trade" by refusing to discuss ways in which they could legalise its service.
Grokster claim they want to turn their peer-to-peer network into a legitimate concern, but that they can't do it while major labels continue to turn down their requests for talks.
Grokster's president, Wayne Rosso, said: "It's clearly a cartel in violation of competition laws. We've tried to negotiate with the record labels. They leave us no choice but to protect consumers and ourselves from these grievous practices."