Melon, a virtual record company has earned billions of won in royalties

Melon under suspicions of embezzling royalties

Melon is being accused of embezzling royalties from copyright holders by creating a ghost music label called LS Music. LS Music was reportedly created sometime between 2009 and 2011, when Melon was operated by Loen Entertainment.

The original royalties distribution system in 2011 gave 46 percent of the total profits to Melon, with the remaining 54 percent going to copyright holders. However, Melon reportedly embezzled billions of won (approximately $845,305) of royalties from copyright holders by registering LS Music as part of the royalties distribution system, through which LS Music acquired about 10 percent of the total profits.

Melon reportedly continued to embezzle royalties from copyright holders in various ways even after 2011. If the prosecution begins thorough investigation against Melon for their alleged fraudulent activities from 2009 to before the company was sold as a private equity in 2013, the amount Melon supposedly embezzled may total up to tens of billions of won (approximately millions of U.S. dollars).

cr soompi

original post: theqoo

1.Melon is a bandit

2. Not only is the sound quality getting worse but also cutting down on copyright fees …?

3. Please boycott Melon

4. I hope this article is more popular.

5. I’m not surprised much.

6. So I don’t use Melon.

7. Stealing royalties, crazy? Do you have conscience?

8. Melon’s sound quality is not good. Why do you use it?

9. I spent money to use Melon for a month and then I said goodbye forever

10. This is why I don’t want to use Melon.

Categories: Theqoo