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Small Russian Labels Balk at ‘Unfavourable’ Licensing Deals From VKontakte

Small Russian Labels Balk at ‘Unfavourable’ Licensing Deals From VKontakte

The social network VKontakte — aka “The Russian Facebook” — which recently launched a paid music service and has license agreements with Sony, Warner and Universal, is having trouble signing deals with smaller, local labels.

“Judging by experience, VKontakte only sings deals with labels following court litigations with them,” Sergei Morozov, general director of Moroz Records, told Billboard.

However, Moroz Records recently lost a case, in which the label sued VKontakte over copyright breach, as the court sided with the social network, ruling it was just an intermediary and could not be held responsible for illegitimate content uploaded by its users.

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