Oxford-based We7, which offers music tracks for free with ads tacked on the front, has secured a £3 million second round of funding from Spark and Eden Ventures. Launched in May 2007, We7 uses its MediaGraft technology to append 10-second commercials to its DRM-free MP3s. Ads expire after a month and revenue goes back to labels and artists as royalties. Advertisers include Microsoft (NSDQ: MSFT) and Sony (NYSE: SNE) Ericsson; repertoire is from V2 (ie. Stereophonics, Cold War Kids) and Sanctuary (ie. Morrissey, Alison Moyet) plus unsigned acts; We7 clocked up its millionth download last week. Previous funds came from musician and former OD2 boss Peter Gabriel with CEO Steve Purdham. Via Guardian.