Naxos Files $1.8M Lawsuit Against Chinese Music Distributor Kuke Over Missed Payments
Naxos has launched legal action against China's Kuke Music, seeking $1.86 million in allegedly unpaid fees from a 2018 digital distribution agreement.
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The lawsuit, filed in Tennessee federal court by Naxos Digital Service US, stems from a contract allowing Kuke to distribute Naxos services (including music, spoken-word, and video libraries) to Chinese educational institutions and individuals through 2026.
The agreement required Kuke to meet increasing minimum license fees, reaching $1.34 million for 2023-2024. Despite multiple payment discussions and a proposed catch-up plan, Kuke allegedly failed to meet its financial obligations, prompting Naxos to terminate the partnership.
This legal dispute comes amid broader challenges for Kuke, including:
- 66% stock value decline over six months
- NYSE delisting concerns
- COVID-19 pandemic disruptions to operations
- Complex existing relationship with Naxos
Adding to the complexity, Kuke announced plans in May to acquire two Naxos-related companies: Angelina Assets and HNH International. Regulatory filings reveal deep connections between the companies, with Kuke's CEO He Yu holding 75% equity interest in Naxos, their largest content provider.
The case highlights growing tensions in the classical music distribution landscape, particularly in the Chinese market, where Kuke positions itself as the leading provider of classical music licensing and educational services.
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