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. Last Updated: 07/27/2016

ChronoPay Wants Licenses for MP3s

Dutch credit card payment processing company ChronoPay confirmed on Wednesday that from next month it would only work with Russian online MP3 retailers who have direct agreement licenses with music labels and rights-holders.

ChronoPay also said it would stop offering its payment services to online music shops with a license from the Russian Organization on the Collective Management of Rights of Authors.

"We have made a decision to work only with one organization for collective copyright management," said Denis Sotin, ChronoPay's head of operations, in a statement posted Tuesday on the company's web site.

"As a consequence, we shall not cooperate with shops [with more than one rights-agreement license] as it is not clear how a particular online music store may work under the two licenses."

Russian music stores are estimated to sell MP3 files worth up to $50 million per year.

The company said its decision was based on concrete steps taken by NP FAIR, a Russian organization that works to ensure copyright management of artists and rights-holders, to increase the openness of its activities.

Market-watchers said ChronoPay's policy was not likely to make the market any more transparent, however.