Hi Esa, nice to meet you here as well ; )
I understand what you mean but you have to put it into the right context also.
The label you mean i think i know... lets say it is mtk or so (you will kow). i don't know them but i know it was a special time when free culture and free netlabels emerged to start an alternative to the at that time current music industry. i know there were a lot of "bedroom" musicians and other people who tried to open a label out of their idealism to change the situation. they usually work with different licensing model - in that case creative commons. This was a complete new license which could not be met or combined with the copyright at this time (and still is a problem). It was more complicated and expensive to do if the artist was member of a collecting society - and much easier if they are not. The sad thing here is that they either didn't know better or didn't tell you to their advantage. I run a netlabel since then also and know about the problems. I'm also familiar with copyright and the share of revenues in that regards so i know for a small artist it doesn't make sense to register (what your friends said at this time) - knowing the contracts are for long term (5 years) and include ALL productions have been released. Although i understand your disappointment here - it has happened because of two parties didn't know whats up at a time where we had a few changes and people (or rather idealists) with no real knowledge of the music industry besides of the unfair nature. We are always having changes and we can not just rely on others - we have to do our own research. That's what i have learned as well! I was always thinking of the free netlabels as an other way for the artist to promote his music (to get noticed) and as a filter of the increasing output by selecting by own taste and not like the common music industry to maximize the profit by releasing music for the masses. I see a lot of really good musicians who deserve more attention and you are one of them ; )
There is still so much to say and i hope others take their lessons but don't give up the hope. Wish you all the best mate!