The AP is reporting that Lala.com, a CD trading site, recently launched a new service that streams music directly to iPods. This means you wouldn't have to maintain a library of MP3 files on your computer's hard drive. Instead, you would install a browser plug-in that lets the site copy music directly to your iPod.

It's a unique idea, and one that the company is fully funding; they're paying the record labels all the royalties directly.

This author has interviewed the Lala.com guys several times in the past, as well as written a review of the original site for PC Magazine.

Lala.com co-founder Bill Nguyen and business developer John Kuch are certainly smart enough; here's hoping they can pull off this new mobile service.

Lala.com to Send Songs Directly to iPods [AP via 1010 WINS]