Subsidiary of Hong Kong’s biggest karaoke operator Neway hit with winding-up petition just days after lounges reopen
- Neway Music, responsible for obtaining music licences for 12 karaoke lounges, served with petition by licensing body representing major labels
- Neway Group’s outlets resumed business last week following a relaxation of coronavirus social-distancing rules
Neway Music, responsible for obtaining music licences for parent Neway Group’s karaoke outlets, was served with the petition on Monday by the Hong Kong Karaoke Licensing Alliance, according to filing records at the High Court.
The alliance is a licensing body authorised by Sony Music Entertainment Hong Kong, Warner Music Hong Kong and Universal Music to negotiate and grant reproduction licences of approved music videos to karaoke lounges in the city, and to collect fees from the licensees.
The first hearing has been scheduled for July 28.
The two parties have been embroiled in a legal tussle since 2010 when Neway challenged the alliance’s licensing scheme at the Copyright Tribunal.
In 2019, the tribunal ruled in favour of the alliance to find the scheme reasonable and ordered Neway to pay more than HK$90 million in licence fees plus costs for the protracted proceedings last November. Neway is appealing against the tribunal’s rulings in the High Court.