This article reviews two interesting business models aiming to transform p2p file sharing applications into legal businesses.

"In a P2P system, a music fan grabs tunes directly off another fan's computer. Such systems lower distribution costs because files are available from multiple locations. They also save companies money on bandwidth.

Much of the time, using P2P system amounts to piracy. And because of unauthorized services like Kazaa, P2P has become something of a dirty word in the recording business.
Among companies trying to convince the music industry that P2P doesn't have to be all about piracy is Wippit, a Britain-based music subscription service.

For about $50 a year, subscribers can download any of Wippit's tunes using P2P and save them in as many places they like -- an idea that makes many big recording companies nervous. Other services limit copying.

Most of the 200 recording companies that have signed on to Wippit are independent, and there are huge gaps in what music is available.

Another file-sharing option may come from a German company, 4FriendsOnly.com, which teamed with the Fraunhofer Institute, the German research center that developed that MP3 music format, which is widely used for file-sharing.

Their service isn't available yet, but the idea is that fans should get a commission if they pass on tunes to friends who buy them. Fans who get a recommendation could listen a few times before access to the song ends -- unless it is purchased.

Chief executive Jurgen Nutzel, who was showing the technology at Cannes, said people who might be less tempted to burn extra copies of songs for friends if they could get a commission instead."