"This law risks removing all deterrence against piracy," said Olivia Regnier, who represents record labels as the European regional counsel for the International Federation of the Phonographic Industry.
"They have been drawing people to their site using content essentially as a loss leader," said Hilary Rosen, president of the Recording Industry Association of America, which represents record companies.
Sales of CDs, tapes and records have slid by 40% in Britain since 2001, according to the BPI, which represents record labels.
The letter was publicized by the MusicFirst Coalition, a music industry group that represents record companies, a major musicians' union and others.
Record retailers who contacted the major labels for licenses have been offered only the chance to carry Musicnet or Pressplay rather than designing their own sites, said Pam Horovitz, the president of the National Association of Retail Merchants, which represents record stores.
Uploaders, Beware Following the aggressive legal campaign of American record companies, the British Phonographic Industry (B.P.I ., the trade group that represents record labels in Britain, will begin to issue lawsuits to Internet users it says are illegally trading music.
Presently, record companies collect fees from several hundred Internet-only radio stations, which create programming exclusively for online distribution, said Hilary Rosen, president and chief executive of the Recording Industry Association of America, which represents record companies.
"Any time you have changes in the dynamics of an industry, you have an opportunity to rejigger the economic pie," said Carey Sherman, president of the Recording Industry Association of America, the Washington lobbying group which represents record companies.
Phonocardiogram (PCG) signal represents recording of sounds and murmurs resulting from heart auscultation.
