Almost 10 years ago, the frontman of the band Skryabin, Andriy Kuzmenko (pseudonym Kuzma), died in a car accident. But the struggle for his legacy – the copyright and money (royalties) that bring creativity to this day – is in full swing. The management of Moon Records, the label that handled the band’s rights, is suspected of fraudulently failing to pay 1.5 million UAH to Andriy Kuzmenko’s heirs. Moon Records denies the allegations and points out that there is no verdict and the presumption of innocence applies. However, the copyright holders of Kuzma’s heritage are certain that the final amount of the “fraud” may be many times higher.
How it all started
According to law enforcement officials, after Andriy Kuzmenko’s death, Kuzma’s wife, Svitlana Babiychuk, inherited the copyright to all his works. She founded a company to manage the intellectual property.
The musician’s widow granted a license for any reproduction of all his songs to Moon Records, a record label headed by director Tetiana Korchemakha. The agreement concluded between the parties stipulated that Babiychuk would receive 70% of the income from the use of Andriy Kuzmenko’s intellectual property rights, and Moon Records would 
receive 30% for asset management.
But, as established during the investigation, the calculation of remuneration sent to Babiychuk’s company, as the owner of the rights to Kuzma’s works, within three years of the conclusion of the contract, did not correspond to the actual data on the digital music distribution market. According to the police, Moon Records management deliberately underestimated the number of listens to Scriabin’s songs on streaming platforms in the reports provided, thus significantly reducing the amount of remuneration to the rights holders.
“The operatives of the Cyberpolice Department found that in order to increase illegal profits, the record label entered into an agreement with a Czech music distribution company. Moon Records assured the owner of the works that the foreign firm was their subsidiary and did not take any percentage of the profits. In fact, the foreign “partners” took up to 85% of the profits, and the actual number of listens on streaming platforms was also underestimated,” the police added.
According to an independent intellectual property expertise, the digital distribution of Skryabin’s recordings in 2017-2019 was supposed to bring his wife at least UAH 1.5 million.
What is the situation at the beginning of 2025?
Prosecutors of the Prosecutor General’s Office have sent to court an indictment against the director of the music label Moon Records for forgery and fraudulent acquisition of funds in large amounts by breach of trust. The case was opened under Part 4 of Article 190 and Part 1 of Article 366 of the Criminal Code of Ukraine.
The police conducted searches and questioned witnesses and victims. The management of Moon Records has already been notified of being suspected of large-scale fraud, which carries a sentence of up to 8 years in prison.
Moon Records’ press service commented on the incident. They noted that the allegations are “completely false”.
“This news is nothing more than black PR from competitors. This is a standard method of struggle in our industry, which, unfortunately, is used from time to time. It is important to know that this information has no real basis and does not affect our operations or reputation. We continue to work honestly and openly, keeping all our promises to our artists,” the statement said. The statement also added that the label has allegedly never signed a contract with Svitlana Babiychuk.
“Our company has filed a lawsuit against Kuzma Scriabin LLC, where we are protecting the rights of the authors and members of the Scriabin band who cooperate with us,” the statement added.
In addition, the founder of the Moon Records label, Andriy Pasichnyk, is wanted for non-payment of royalties for Skryabin’s songs. He was notified of suspicion at the end of 2024. The prosecutor’s office is taking measures within the framework of international cooperation to protect copyrights and prevent the illegal use of the band’s tracks and albums by foreign companies.
This case will set an important precedent for the Ukrainian music industry and the royalty market. Therefore, we are following further developments from a purely legal perspective.
The current situation once again confirms the importance of transparency and responsibility in the music industry. The issue of compliance with the law, fair distribution of revenues and respect for the rights of artists remains 
relevant at all times. Cases like this draw public attention to the need for stricter control over financial transactions in the creative industries, as well as to the importance of protecting the interests of those who create cultural products. This is yet another reminder that trust is a key element in any business, and abuse of this trust sooner or later leads to responsibility. Build your relationships right away with the involvement of professional lawyers who will control all processes, ensure fair work and stimulate the activities of labels, publishers, etc. with their requests.
copyright / intellectual property / Moon Records / royalties / Scriabin
