2016 has been a chaotic year for Russia’s music industry, with ructions engulfing the country’s collecting societies. Now two of the biggest players in the Russian music-streaming market are embroiled in a legal dispute. Zvooq is suing Yandex, claiming that the latter company has poached its staff, breaching an NDA signed in February this year. “Yandex’s actions are unacceptable, and should not be left unpunished, because they illustrate to the world that Russia is a country with a yet immature business culture with high risks for investors,” Zvooq co-founder Victor Frumkin told TechCrunch. “As far as I know, we are not the only ones who have experienced this behavior by Yandex – and we want to put a stop to it.” Yandex has responded with surprise at the lawsuit. “An agreement with Zvooq was never violated as there was no solicitation on our part. Their rhetoric over the past few days does not reflect the reality of the situation,” said a spokesperson. “We are sure of our legal position and will defend it in court.”
Russian streaming service Zvooq sues Yandex for poaching
