|According to reports, the Russian social networking giant VKontakte might conclude a licensing deal with Universal Music. VK has been involved in legal action with the music label after failing to tackle user piracy on its platform. Now the companies are reportedly close to settling their dispute.
VKontakte has long been considered as one of the worst facilitators of copyright infringement in the world. Like other music labels, Universal Music has put VK under intense pressure to tackle copyright infringement on its platform. 2 years ago, the music group filed a lawsuit against the social media website. Eventually, a Court of Appeal ruled in favor of VKontakte. Universal filed another appeal, but peace might be on the horizon, with negotiations to strike a licensing deal with Universal reportedly advancing.
According to the deal, Universal Music is guaranteed a minimum fee of $8m over 3 years. A revenue sharing arrangement is also under discussion, which could make VK make money when its users sign up for a premium music subscription package.
It was expected that the announcement could be made during last weekend’s VK Fest music festival in Saint Petersburg, but it seems that there are still some legal complications to be clarified.
If Universal Music agrees to the deal, it will be in good company, as VK’s parent company already has annual licensing deals in place with Sony Music ($2m), Warner Music ($2.5m), distributor The Orchard, and a handful of Russian publishers. If this deal goes ahead, the company is initially expected to spend about $7m annually on music licensing. This is a huge amount if you compare it with the entire Russian digital music market, which was worth only $23.5m last year.
Thanks to TorrentFreak for providing the source of the article.
Monday, July 18th, 2016
|so now they pay money , do they still operate as a copyright infringer but trade as per normal ?|
|Well I would bet giving the trolls masters some money will work far better than seletive deletion did||
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