MOSCOW, June 29 - RAPSI. The Moscow Commercial Court has validated 90 percent of the $17 million in additional taxes charged from the Russian Copyright Society by the Federal Tax Service, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Friday.

The case was heard behind closed doors upon the plaintiffs request due the threat of personal data disclosure during the trial.

The court earlier reported that a tax inspectorate in Moscow had ordered the society to pay 560.102 million rubles ($17 million) in additional VAT, profit tax, tax on incomes derived by a foreign company from sources in Russia, plus penalties and fees.

The society argued that the funds paid into its accounts are not its property and are distributed to copyright holders. However, the interest withheld by the plaintiff is used to cover the cost of the royalties collection and payment in accordance with the society's annually approved budget. The forfeiture of such interest would infringe the rights of copyright holders, it said.

The Russian Copyright Society represents nearly 2 million foreign copyright holders in the music industry in Russia.