The problems for AllofMP3 continue to mount

The Russian MP3 provider AllofMP3 has been under fire from the Russian and American authorities and record industries. The company, however, is also having problems with groups other than the record industries. Most recently, both Visa and Mastercard have asked member banks to stop processing payments to AllofMP3 since the company is facing mounting legal issues in Russia. Mediaservices, current owner and operator of AllofMP3, claims that it pays royalties to a Russian licensing group for all music sold through the site. The US has repeatedly stated that the site does not pay artists royalties for music sold through the web site.

AllofMP3 recommended users try to pay through another site, but Visa quickly began turning down payments from the new site. A Visa spokesman said: “The action Visa has taken is in line with legislation passed in Russia and with basic international copyright and intellectual property norms.” A Mastercard spokesman also said that the company doesn't tolerate any sort of illegal activity.

Reports being published on the Internet show that AllofMP3 is planning an ad-based software player that will display ads while the downloaded music is being played. However, there is no official word about the software from Mediaservices.

Mediaservice representatives believe the company has been unfairly branded as a pirate website. Although it entered crosshairs after becoming popular in the US and UK, serious problems haven't arisen for the company until recently. For example, the British Phonographic Industry sued AllofMP3 last July.

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