RealNetworks

(RNWK) - Get Report

was up 7.5% in preopen

Island

trading on news that three big record companies are negotiating to license their music for use in the company's planned online subscription service,

MusicNet

.

AOL Time Warner's

(AOL)

Warner Music Group,

Bertelsmann AG's

BMG Entertainment and

EMI Group

are being offered part ownership of the project, which is considering offering licenses to other online presenters under strict conditions, including free-music service

Napster

.