Traffic Japan, the Japanese licensee for Sub Pop, has signed a “partnership agreement” with Blues Interactions, a Tokyo-based company that operates the P-Vine and Substance labels as well as publishing music-related books and magazines.

Under the agreement, Traffic (which is also based in Tokyo) will release its products through Blues Interactions’ manufacturing and distribution channels, while the two companies will work together on marketing and promotion.

Traffic (www.trafficjpn.com) was previously owned by Web-based broadcaster TV Tokyo Broadband, which reportedly sold its stake in the label last year to other investors. Blues Interactions (http://bls-act.co.jp/) is owned by music-oriented cable-TV station Space Shower Networks, which in turn is owned by major Japanese trading company Itochu.

Besides its licensing deal with Sub Pop, Traffic also releases product from Cooking Vinyl, Kitsune and Brownswood Recordings.

Traffic’s effective loss of independence doesn’t faze label president Shoe Nakamura, who was managing director of V2 Records Japan prior to Traffic Japan’s establishment two years ago,

“We are confident that this partnership with Blues Interactions will enable us to increase our market presence,” says Nakamura, terming the move as “very positive” for Traffic. He says Traffic is looking forward to releasing “strong titles” from Kitsune and Sub Pop from October.

Nakamura declined to comment on reports that several Traffic Japan employees have been laid off as part of the deal with Blues Interactions.