With big names bringing in big bucks, it was only a matter of time before territorial squabbles over the right to profit from Russian star appeal edged its way onto the Russian market.
But after the television company Vid fired a warning shot last week at the DMC Group -- the market research company that created the Smirnoff CD Top 40 chart, which lists best-selling compact discs -- the knives are out in the battle for celebrities.
According to Vid board member Alexander Gorozhankin, the DMC Group has no right to associate musicians' names with the Smirnoff product.
"I have nothing against a normal Top 40 chart itself, but I will not advertise vodka," said Gorozhankin, adding that he did not want young listeners to associate popular music with alcohol. "Our television company promotes a healthy lifestyle."
But aside from Gorozhankin's distaste for mixing Russia's national drink with music, the root of the conflict is not moral, but financial. As the promoter of many Russian musical groups, Vid is trying to protect its property.
"I handle the interests of these musicians. They sign their names over to me," said Gorozhankin, adding that only Vid has the right to use his clients' names in advertising. "The Top 40 chart," he said, "is blatant advertising."
But the DMC Group, which launched the chart last January, is quick to distinguish between advertising and promotion. "DMC does not do above-the-line advertising," said marketing director Patrick Lynch, adding that subsequent research has shown that listeners do not associate the drink with the bands appearing in the chart. "This is a genuinely independent chart," Lynch said. "Although Smirnoff happens to be the sponsor, it could have been sponsored by somebody else."
"We have no plans to use anyone on the chart to promote the product," Lynch added. "That would be blatant advertising. Our interests are twofold: to make the chart as widely known as possible and to keep the sponsor happy with the money it is spending." According to Lynch, the Smirmoff company has committed $500,000 to the project.
In fact, only one of Vid's clients, Vladimir Presnyakov -- Alla Pugacheva's son-in-law whose falsetto voice is reminiscent of the Bee Gees -- has actually hit the Smirnoff CD Top 40 list. But Gorozhankin believes his other groups will soon be best sellers.
"If they drop the Smirnoff logo from the chart I will not object -- I will even help them," said Gorozhankin, adding that he is prepared to begin legal action if DMC does not comply.
According to Svetlana Rozina, a partner at Lex International, a law firm that deals in intellectual-property rights, this is not the first time such conflicts have arisen, and certainly not the last.
"I think these cases will appear more and more frequently," said Rozina, adding that, unlike the entourage of lawyers and managers that surround big-name performers in the West, Russian artists sign away their rights without consultation.
For the time being, Vid is not initiating any legal action. "This is a warning to DMC," said Gorozhankin, adding that he was ready to begin legal action if the company continued to promote Smirnoff vodka with the list. "We will wait and see how they react."
But after the television company Vid fired a warning shot last week at the DMC Group -- the market research company that created the Smirnoff CD Top 40 chart, which lists best-selling compact discs -- the knives are out in the battle for celebrities.
According to Vid board member Alexander Gorozhankin, the DMC Group has no right to associate musicians' names with the Smirnoff product.
"I have nothing against a normal Top 40 chart itself, but I will not advertise vodka," said Gorozhankin, adding that he did not want young listeners to associate popular music with alcohol. "Our television company promotes a healthy lifestyle."
But aside from Gorozhankin's distaste for mixing Russia's national drink with music, the root of the conflict is not moral, but financial. As the promoter of many Russian musical groups, Vid is trying to protect its property.
"I handle the interests of these musicians. They sign their names over to me," said Gorozhankin, adding that only Vid has the right to use his clients' names in advertising. "The Top 40 chart," he said, "is blatant advertising."
But the DMC Group, which launched the chart last January, is quick to distinguish between advertising and promotion. "DMC does not do above-the-line advertising," said marketing director Patrick Lynch, adding that subsequent research has shown that listeners do not associate the drink with the bands appearing in the chart. "This is a genuinely independent chart," Lynch said. "Although Smirnoff happens to be the sponsor, it could have been sponsored by somebody else."
"We have no plans to use anyone on the chart to promote the product," Lynch added. "That would be blatant advertising. Our interests are twofold: to make the chart as widely known as possible and to keep the sponsor happy with the money it is spending." According to Lynch, the Smirmoff company has committed $500,000 to the project.
In fact, only one of Vid's clients, Vladimir Presnyakov -- Alla Pugacheva's son-in-law whose falsetto voice is reminiscent of the Bee Gees -- has actually hit the Smirnoff CD Top 40 list. But Gorozhankin believes his other groups will soon be best sellers.
"If they drop the Smirnoff logo from the chart I will not object -- I will even help them," said Gorozhankin, adding that he is prepared to begin legal action if DMC does not comply.
According to Svetlana Rozina, a partner at Lex International, a law firm that deals in intellectual-property rights, this is not the first time such conflicts have arisen, and certainly not the last.
"I think these cases will appear more and more frequently," said Rozina, adding that, unlike the entourage of lawyers and managers that surround big-name performers in the West, Russian artists sign away their rights without consultation.
For the time being, Vid is not initiating any legal action. "This is a warning to DMC," said Gorozhankin, adding that he was ready to begin legal action if the company continued to promote Smirnoff vodka with the list. "We will wait and see how they react."