In order to get past the legal problems that might follow suite, Mygazines.com installed the service in Sweden with PRQ Net and registered the domain name in the Caribbean.

About 16,000 people have already subscribed to the service and the number could continue to increase, according to Zataz.com.

There are no advertisements on the site yet. However, the administrators launched a contest to attract more users. It granted US$5,000 to the person who got the most users to sign up and will be paying that person US$1,000 per month.

The Mygazines site claims that it will not send e-mails without “explicit” permission from users and that it won’t save your password and login info. Nevertheless, it sends e-mails to Yahoo! Mail, Hotmail, Gmail and AOL accounts asking friends to join, Zataz.com reported.