Tencent Music Entertainment Group said on Thursday it will suspend negotiation of sub-licensing its JVR Music copyright with NetEase Music and is demanding rectification, The Paper reported.
Previously, the two companies signed a one-year contract which came due at the end of March. However, according to Tencent Music, NetEase Music infringed on the copyright and repeatedly went beyond the authorized scope of the pact.
Except for the copyright of JVR Music, other sub-licensing between the two companies are unaffected, the report said.
Subsequently, NetEase Music issued two apologies, saying it was an execution problem and that they failed to amend it in time. They will thus open a music copyright supervision channel and call on the public to help safeguard legitimate music.
Meanwhile, it was reported that valuation of Tencent Music has soared in recent weeks after some of the shares changed hands privately. According to an insider, recent transactions have pushed Tencent Music to a valuation of US$25 billion.