AllOfMP3 Shut Down by Russian Government

[BJ_M]

AllOfMp3, the popular online music store, has been shut down by the Russian government. Pressure from the United States, and a refusal to enter the World Trade Organisation (WTO) convinced the Kremlin to take the website down for good.

Before the shutdown AllOfMP3 had nearly 6 million users who were able to download songs and albums for a fraction of the price from authorized alternatives such as the iTunes Store. MP3s were sold for $0.20 per song, or less.

AllOfMP3 has been a thorn in the side of the RIAA and the US government for years. Last year, U.S. Trade Representative Susan Schwab said that if Russia wants to join the WTO, they should shut down the pirate music website [AllOfMP3] that is robbing U.S. recording companies of sales.

In an interview with P2Pnet, the owners of AllOffMP3 later said that Schwab completely and deliberately mischaracterized AllofMP3, “it is irresponsible to use AllofMP3.com as a negotiating instrument in an attempt to extract concessions from Russia”, thay added. But now it seems like president Putin has some good news to tell Bush today, a mere coincidence of course.

It is not clear how effective the shutdown of AllOfMP3 will be. Most users will probably move to MP3sparks, a similar service with a similar setup, launched by the same company. This site is not illegal under Russian law because they use a different licensing model.

Last December the Danish ISP “Perspectiv” decided to block access to AllOfMP3 for all their users. In a response, The Pirate Bay, working together with the pro-piracy lobby Piratbyrån, decided to block all Perspektiv’s customers from accessing its site. Not long after that “Perspectiv” reconsidered their position, and their customers were allowed to access the online music store again.

My gut feeling says that these “grey market” MP3 sites are just another Hydra.


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[yoda313]

hmmm.... I have mixed feelings about that - you don't want somebody outright cheating artists but then again you do want market competition....

[thecoalman]

It is not clear how effective the shutdown of AllOfMP3 will be. Most users will probably move to MP3sparks, a similar service with a similar setup, launched by the same company. This site is not illegal under Russian law because they use a different licensing model.

So they shut down a ghost.... Someone else had posted here that they had to move there account to the sparks site and that was weeks ago. Gee, you think they saw it coming.

[drjtech]

Russian Court Acquits AllofMP3.com Exec

MOSCOW, Aug 15 (Reuters) - A Russian court found the former boss of music download Web site www.allofmp3.com not guilty of breaching copyright on Wednesday in a case considered a crucial test of Russia's commitment to fighting piracy.

The allofmp3.com Web site angered Western music companies by undercutting the price of downloads in deals they said breached copyright law.

Denis Kvasov, head of MediaServices which owned the site, was put on trial after entertainment companies EMI Group Plc (EMI.L: Quote, Profile, Research), NBC Universal (GE.N: Quote, Profile, Research) and Time Warner Inc. (TWX.N: Quote, Profile, Research) pressed for a prosecution.

"The prosecution did not succeed in presenting persuasive evidence of his involvement in infringing copyright law," said judge Yekaterina Sharapova.

A local official with the International Federation of the Phonographic Industry (IFPI), which is representing copyright holders in the case, said it would appeal the decision.

"We are disappointed with the verdict and will appeal," IFPI regional director Igor Pozhitkov told reporters.

The site has been a thorny issue in negotiations between Russia and the United States over Russia's accession to the World Trade Organisation, a key aim of President Vladimir Putin.

At the beginning of the year global credit card companies stopped allowing customers to pay allofmp3.com for music downloads and by July the Web site had quietly closed down.

Kvasov always said he was within the law because the site paid part of its income to ROMS, a Russian organisation which collects and distributes fees for copyright holders.

The judge agreed with his defence.

"Everybody who uses soundtracks has to pay a certain amount of their income to the rights holders and this company has done that," she said. "MediaServices has paid a certain amount of money to ROMS."

At the height of its popularity allofmp3.com attracted millions of bargain-hunting music lovers across the world. It would typically sell the world's most popular tracks at a huge discount to U.S. competitors.

Russian marketplaces and underground passes are full of cheap copies of music and film on DVDs and Russia's government has been accused of being too lax on protecting intellectual property rights, a basic principle of WTO membership.

But in July Russia's top negotiator on WTO entry said he thought a deal would be ready by the end of the year.

Although allofmp3.com has disappeared, another Russia-based discount music Web site has since emerged—www.mp3sparks.com, also owned by MediaServices.

-drjtech