Russia Poised to Shutter AllofMP3

By Ed Oswald, BetaNews

November 28, 2006, 4:23 PM

AllofMP3.com will likely be shut down by Russian authorities as part of its entrance into the World Trade Organization (WTO). But the site is fighting back, providing a legal argument for its continued operation.

A document released by the Office of the United States Trade Representative seems to indicate that Russia and the US have come to an agreement that would remove one of the biggest roadblocks to its entry into the WTO - intellectual property rights.

In addition to the apparent imminent closure of AllofMP3, Russia has also agreed to take steps to fight optical disc piracy, strengthen criminal penalties and border enforcement against piracy and counterfeiting, and bringing intellectual property rights in line with WTO standards.

Russia has agreed to pass laws that would meet these requirements by June 1, 2007. Among those would be laws to prevent societies operating within the country from collecting royalty fees from websites without consent of the rights holder.

AllofMP3 has regularly defended its operation by claiming it has licenses from Russian Multimedia and Internet Society (ROMS) and the Rightholders Federation for Collective Copyright Management of Works Used Interactively (FAIR).

However, neither the U.S. nor Britain recognize those licenses, and organizations such as RIAA and MPAA have refused to accept payments from either organization.

The US government document specifically singles out the site as a target: "The United States and Russia agreed on the objective of shutting down websites that permit illegal distribution of music and other copyright works. The agreement names the Russia-based website allofmp3.com as an example of such a website."

In a new twist, AllofMP3 parent company Mediaservices has shot back, claiming it operates within the confines of Russian and US law in a statement on Tuesday, and saying RIAA CEO Mitch Bainwol is deliberately trying to mischaracterize the site.

According to the statement, AllofMP3 is legal under Articles 44 and 45 of the Russian constitution, and under U.S. statutes such as 17 U.S.C. sections 602(a), 1008, 1001, 109, 107, 117 among others. Points in the law including the "iPod" and Fair Use provisions make it legal, it argued.

"If the RIAA had done its homework, it would have discovered that even under U.S. law, consumers apparently have a legal basis to purchase music from AllofMP3," said Vadim Mamotin, Director General of Mediaservices. "There is absolutely no legal basis for the campaign against AllofMP3."

The company also argued that RIAA has no jurisdiction within Russia, and that U.S. laws do not apply within the country. Mediaservices also pointed to the fact that it has been offering record labels the option to have their content removed, but it has heard nothing from neither the labels nor the Russian licensing societies.

"Perhaps, opt-out requests are not being made because the record labels can't clear the rights," it chided.

Still, strong words may not be enough to save the company, as Russia is intent on joining the WTO and says it is working to fix the lack of intellectual property controls in the country.

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By johnathonm

posted Nov 30, 2006 - 1:59 PM

Hey,

Allofmp3, move to somewhere outside the jurisdiction of any government. Drop into Iran...now let's see RIAA get you there :)

Score: 0

By PC_Tool

posted Nov 30, 2006 - 6:41 PM

Yeah, all they gotta worry about there is the occasional meltdown / test detonation.

Score: 0

By glock__17

posted Nov 29, 2006 - 8:46 PM

Here is what the RIAA is really about, they need to be stopped.

http://prisonplanet.com/...2006/291106shutdown.htm

"A landmark legal case on behalf of the Recording Industry Association of America and other global trade organizations seeks to criminalize all Internet file sharing of any kind as copyright infringement, effectively shutting down the world wide web - and their argument is supported by the U.S. government."

Score: 0

By slinkys_delsol

posted Nov 29, 2006 - 4:18 PM

Bottom Line, the RIAA and MPAA need to stop suing their Customer Base and start embracing the technology.

We are a short time away from the point where CD's are not going to be an option to buy, but a download. Granted, I still like have those certain CD's of my favorite artist, but honestly, I do not NEED all that packaging. The Movie industry is already moving in this direct of "Direct Download" for you DVD's.

The cost to produce most CD's is less then $1 (US) then they sell them for $10 - $20 in the stores and the artist in most cases get like $0.89 of that. It's no wonder most artist are going with a Private Label or coming up with their own. The RIAA and MPAA do not need any more $$$, they are just the "Insurance Company" of the record industry.

Score: 0

By GCoder

posted Nov 30, 2006 - 9:40 AM

"The cost to produce most CD's is less then $1 (US) then they sell them for $10 - $20 in the stores and the artist in most cases get like $0.89 of that. It's no wonder most artist are going with a Private Label or coming up with their own. The RIAA and MPAA do not need any more $$$"

Very well said. Absolutely aggree.

Score: 0

By joeshmoe7

posted Nov 29, 2006 - 2:24 AM

The more they tighten their grip, the more that will slip through their fingers. Give us more DRM, more lawsuits, bring more more and more. It will hasten their demise.

Score: 0

By bobthegoat2001

edited Nov 28, 2006 - 11:59 PM

Instead of trying to shut them down, why not try to one up them? I'm sure that if a company that actually had the rights to re-sell it in the US for the same price as Allofmp3.com, that they would still make a profit; since your not having to put it on anything like CD's, your just using there bandwidth.

But no... the RIAA wants to sell it at 99 cents per song (the same price as CD's, when you buy the whole album) with DRM that makes it only works on specific players. Then if you want to get a different player later on, you have to re-purchase your music. Nice going RIAA. No wonder Allofmp3.com is doing so good.

Score: 0

By The Man

posted Nov 29, 2006 - 9:35 AM

"Instead of trying to shut them down, why not try to one up them?"

exactly
time for the RIAA to think up a new game.

Score: 0

By Hollywood__

edited Nov 28, 2006 - 11:54 PM

BitTorrent is OK but sometimes slow and useless. Newsgroups are the best way to "obtain" music. The RIAA / music industry will never get another dime of my money, as they haven't for years now.

Greed will ultimately ruin any company. Wait until you see what happens to TiVo now that they started putting up those ad overlays while you are fast forwarding. They will also add them to the end of your recorded programs and disable the skip ability because the advertising groups are pressuring them.

Yeah, you can record programs and watch them later, but now you have to watch the ads too. TiVo's huge selling point was "skip the commercials". Morons.

Sell your TiVo stock.

And if some spoiled rock star can't buy another bag of coke or a Ferrari because I support music sharing, too bad.

Score: 0

By Mark Gillespie

posted Nov 29, 2006 - 3:05 PM

Ahh, not we really see who Hollywood really is, nothing more than a music pirate who wants music for free, and does not realise his actions are destroying what little is left of the music industry.

Get real, if you don't like DRM on downloadable music, protect by buying the CD instead, not downloading for free...

Score: 0

By bobthegoat2001

posted Dec 2, 2006 - 1:19 AM

Just like you will download movies illegally with your PS3 using Linux?

Score: 0

By slinkys_delsol

posted Nov 29, 2006 - 4:26 PM

Do any of you realize that AllOfMP3.com it is NOT FREE to download music!

They actually have a well organized Site / System and the RIAA and MPAA need to embrace the Technology and the way they do things rather then continually suing their customer base.

Score: 0

By wincement

posted Nov 29, 2006 - 5:06 PM

Maybe not free, but it might as well be (it's darn cheap). And anyway, it's still illegal as far as the U.S. is concerned.

...which is the reason for this whole issue. You did read the article, didn't you?

Score: 0

By PC_Tool

edited Nov 29, 2006 - 6:27 PM

The problem is not the illegality. Not really, anyway. The problem is that AllofMP3 is competing against, and blowing away the RIAA/DMCA/DRM restricted competition in the US.

They (the RIAA) need to realize that they can make money without tying the hands of the consumer.

Example: I will *never* buy a song from any US-based DRM restricted online retailer. Ever.

I am 100% against paying for restricted copies of music, and only paid AllofMP3 for the convenience and service (not the copies of music). I do not believe music qualifies as IP, and thus refuse to get in line. I am more than willing to buy merch and go to concerts.

The belief that copies of music should cost anything more than the costs associated with the production of the CD is asinine. The copies are merely adverts for the shows. If ya like 'em, ya go see 'em. If you can't, you buy the shirt. They make money off of those things, they make next to *nothing* from the sale of the CD or DRM track.

The RIAA needs to realize they will sell *far* more "music" if they create a service (such as AoMP3) that makes getting unrestricted, quality music for next to nothing. The artists need to realize where their main source of revenue comes from, and the consumers need realize they shouldn't have to pay insane prices for copies of the music they like.

All that the restrictions on music do is support *bad* musicians and artists. If they were actually any good, they'd be raking it in from performances. Metallica, Madonna, Elvis, The Beatles, Michael Jackson....love them or hate them, they prove my point. They were great entertainers and made millions on their performances.

Artists today need to realize that in order to get the people to the shows...they need to get their music *OUT THERE*...any way they can.

Score: 0

By The Man

posted Nov 30, 2006 - 12:23 PM

agreed,
good post.

Score: 0

By wincement

edited Nov 28, 2006 - 11:45 PM

WRONG.

Legal methods are the best ways to obtain music.

You are entitled to nothing, leech.

Score: 0

By Hollywood__

edited Nov 29, 2006 - 12:01 AM

When music companies start installing root kits on audio CD's, all bets are off.

If you have ever borrowed a CD from a friend, you my are also a leech because you listened to music that didn't belong to you and you didn't pay for it.

Get over yourself.

Score: 0

By wincement

edited Nov 29, 2006 - 5:02 PM

That was one, not all. I say, screw Sony.

But that doesn't mean you have the right to take was does not belong to you.

If you have ever borrowed a CD from a friend, you my are also a leech because you listened to music that didn't belong to you and you didn't pay for it.

Get over yourself.


Wrong again. If I borrowed a CD from a friend, I had it, and he didn't. Nothing was stolen, and if I wanted to listen to that music again (legally) after giving it back to him, I had to buy it.

Also, there are other free methods of listening to music. FM radio, online radio, Pandora and others, etc.

Heck, even some artists give away their music for free. There's nothing wrong with that. Have at it.

There's no reason to illegally download music other than "I don't feel like paying for something I can get for free and (hopefully) well never be caught for."

Score: 0

By The Man

posted Nov 30, 2006 - 12:27 PM

"There's no reason to illegally download music other than "I don't feel like paying for something I can get for free and (hopefully) well never be caught for." "

you have a very narrow field of vision. don't be so arrogant. you don't know other peoples reasons.

Score: 0

By bobthegoat2001

edited Nov 28, 2006 - 11:57 PM

Well technically newsgroups are still the best ways to "obtain" music, it's just not legal. ;)

Score: 0

By wincement

edited Nov 29, 2006 - 5:03 PM

yeah, yeah... There's always one. ;-)

Score: 0

By AntiochMedia

posted Nov 28, 2006 - 8:24 PM

Victimless Crime comments aside, what AllofMP3 essentially does is obtain music and sell copies of it for a profit. It would be different if AllofMP3 actually owned the rights to the music that they sold. I see absolutely no reason why anyone should support AllofMP3. Those savvy enough to use the service with their non-iPod players should be savvy enough to use bittorrent to pirate their music and save a few bucks.

Unlike suing individuals for ridiculous amounts of cash, this is a battle that the RIAA/MPAA is right for fighting.

Score: 0

By Tenoq

posted Nov 28, 2006 - 6:39 PM

All comes back to the RIAA/MPAA trying to control everything. Even this article states that the Russian equivalents of the RIAA have tried to make payments to RIAA, but they refused.

RIAA just wants a worldwide monopoly control on music and video - and it looks like we're giving it to them. :(

Score: 0

By ZeRO9999

edited Nov 28, 2006 - 6:29 PM

"organizations such as RIAA and MPAA have refused to accept payments from either organization" if the RIAA doesn't need the money, it should just stfu and give us some free records :)

Score: 0

By UTAKER

posted Nov 28, 2006 - 5:24 PM

No it is not a cancer if you were in Russia. USA law doesn't apply there and Russia has it's own law, whereby, it is "legal".

Score: 0

By speedmeister

posted Nov 28, 2006 - 6:15 PM

While it may currently be legal the Russian government seems likely to change their laws to make AllofMP3 soon. Whether you like it or not they will have to find a new home in a jurisdiction where their business is legal or the authorities are indifferent.

Score: 0

By ir0nw0lf

posted Nov 28, 2006 - 5:10 PM

AllofMP3 obviously doesn't see and/or understand the "bigger picture." Every civilized nation on this planet has had to make "sacrifices" for their better good. With Russia, AllofMP3 is a cancer that they are going to have to cut out in order to help their entry into the WTO, which they want (need?) badly.

Score: 0

By ghammer

posted Nov 28, 2006 - 5:56 PM

Actually, except for the seat at the WTO negotiating table, Russia needs nothing from the WTO. They sell oil, which country is going to put tariffs on that?

No, this is more blowing big business from governments. As usual.

Score: 0

By speedmeister

posted Nov 28, 2006 - 6:21 PM

Actually Russia has a quite a bit to gain. Free trade is good for everyone because countries focus on the good and services that they are most capable of rather than wasting resources on those good and services that would be better purchased from other countries. WTO membership would encourage more foreign investment in Russia which is much needed there.

Score: 0

By ghammer

posted Nov 28, 2006 - 11:45 PM

"Free trade" is NOT good for everyone.
Russia does not want/accept outside investment. Check the now broken deals that foreign oil companies had with the Russians.

If (big if) Russia or any other country wishes to accept import goods, it is absolutely free to lower/eliminate its tariffs and let the products in.

WTO membership actually removes a country's ability to regulate imports, to control it's banking, insurance, telecommunications regulations.

But again, without the empty slogans, what does Russia need from the WTO? Nobody is refusing their raw materials, and nobody will refuse to sell products to them.

Score: 0

By 4wd

posted Nov 28, 2006 - 8:59 PM

Actually there is no such thing as "Free Trade" with the U.S. - they impose trade regulations on all agreements that only serve to make any agreement 'one-sided' in their favour.

Score: 0

By IceyKola

posted Nov 28, 2006 - 5:24 PM

Or the RIAA needs to stop being so greedy and super controlling, and work out a deal with them, but it refuses to even discuss it with allofmp3.

The RIAA is the cause of people having to put up with DRM and stupid methods of control. These record companies are already making a ton of money, and some recording artists are making millions for music that is filled with profanity and perversions. While the geniuses that make all this technology possible are getting 5-6 figure salaries.

Score: 0

By notkim

edited Nov 29, 2006 - 10:20 AM

Young bands (I hear) are not looking for a label. They look for loyal fans. 100,000 sales at $15 per CD breaks even for the label, but the band is still hungry. 2000 sales via Internet makes the band feel rich. Maybe allofmp3 should be trying to promote new artists, to grow a market the RIAA can't claim control of.

Score: 0