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Universal sue Russian ISP
By CMU Editorial | Published on Thursday 13 August 2009
The Russian bit of Universal Music is suing an internet service provider in the country for royalty revenues it claims it is owed from a short lived online music service.
Moscow-based net company Akado entered into a licensing agreement with the major in order to launch its web-based music service, but dumped the venture shortly after launch because of that pesky economic downturn. But Universal say they are still owed royalties for the period when the service was live.
A spokesman for the major confirmed to Billboard that legal proceedings had begun and should reach court this month, though added that out of court negotiations continued also. Given how few Russian operators even consider paying royalties, Universal probably don’t want to completely fall out with one firm that did go to the effort of negotiating a deal, even if they couldn’t afford to honour it.
