Print 17 comment(s) - last by mindless1.. on Dec 4 at 3:32 AM

AllofMP3 will stay in operation and stay legal says litigation counsel

The Bilateral Negotiations on Russia's Accession to the World Trade Organization outlines that pirate music websites within Russia will be taken down by June 2007.  The agreement specifically outlined AllofMP3 as an example of a pirate site.  Earlier today, AllofMP3 legal counsel held a panel discussion to talk about some of the allegations made about AllofMP3 during the last few days.

John Kheit, an intellectual property attorney hired on behalf of Chadbourne & Park to represent AllofMP3, immediately started the conference by claiming AllofMP3 has not broken any laws. He went on to say that AllofMP3 has not been contacted by Russian or U.S. authorities since the Bilateral Negotiations on Russia's Accession to the World Trade Organization.  AllofMP3 is not shutting down.

Kheit then emphasized that AllofMP3 operates legally in Russia. 15% of all profit on music sales at AllofMP3 is paid to Russian Organization for Multimedia and Digital Systems (ROMS), the Russian equivalent of the RIAA.  For Russian or foreign copyright holders to collect on the profits collected at AllofMP3, the holder must contact ROMS to petition for payment.  Since ROMS is non-for-profit, funds may even be retroactively requested since any contributions to the organization should still be maintained.

However, many record labels in the US have specifically not requested royalties from ROMS out of fear that collecting would effectively justify AllofMP3's existence.  Kheit countered this point by claiming that copyright holders merely need to show proof of copyright ownership to AllofMP3, and said works would be removed from the site.  To date, no entity has opted out of AllofMP3.

No one representing AllofMP3 could give an accurate count on the size of the service, though the site has widely been accepted as the number two online music provider behind iTunes.  Even though AllofMP3 recently lost its Visa and MasterCard portal, the company relies on a credit proxy called Xrost, which can be paid via Visa or MasterCard.

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Will we ever learn to seek the truth?
By Suomynona on 11/30/2006 6:54:34 PM , Rating: 3
Will politicians ever learn not to blindly trust big organizations? All politicians think that Russia is so different, but it's not. It IS exactly the same copyright laws as out own.

In Denmark it works the exact same way as in Russia. The organization representing the majority of rightsholders, also represent those who don't have an agreement. It is the rightsholders own responsibility to have an agreement with the organization. The only difference is that our danish organization in its rules says sites must use DRM. The prices are not even that different.

In Denmark it is only 12% and minimum 0.13 USD per track.

The funny (no it's not) thing is.. in Denmark ISPs are forced to block access to AllOfMP3 because it's an "illegal site". They (IFPI) imposed censorship on us based on a lie.

What do we see here? The difference is DRM!

..and what have we learned? Nothing.

RE: Will we ever learn to seek the truth?
By bobdelt on 12/1/2006 1:15:45 AM , Rating: 2
why in earth would we ever trust gov'ts instead of organizations...?

At least companies answer to the market and people... governments answer to nobody!!! They have a legal lisence to not only steal but also act in any way they wish. At least the market has a method to their madness... The record companies would be long gone if you all werent putting up with their insane prices, but you all do, so they are still here.

VOTE WITH YOUR WALLET. There is no ways these record companies exist if you stop paying them, so stop bitching and put your money where your mouth is. Or just shut up... either way works.

RE: Will we ever learn to seek the truth?
By Clienthes on 12/1/2006 6:37:57 AM , Rating: 2
Try voting with your vote first. I offer a 100% money back garauntee that your elected representatives will listen to you a lot sooner than the RIAA, especially if you get enough of your friends to contact them, too.

Remember, you probably live in a country where you elect your government officials (or at least the people who appoint them). Get involved with your government and see the effect it has. Regardless of what you think, an elected government is answerable to its citizens.

As a side note, I get really annoyed with all the antigovernment sentiment I hear when hardly anyone bothers to vote, let alone voice their concerns with their representatives/senators. You have to make an effort, too.

By Dfere on 12/1/2006 9:07:56 AM , Rating: 2
Well said.

Added: Record companies do not stop you from finding independent music on the internet. Far from it. But, if you want to buy indie music, it is a lot harder to find, and you will find a lot of junk first. So the companies do provide a service that makes them lot of money. When you complain about their prices, you are complaining against market forces, when you complain about the packaging and promotion, you are complaining you are too lazy to find music you like yourself and take a risk of purchasing junk. This is not a fault of our government.

When I was a youngin we did not have the internet and had no possibility of doing this. Suck it up, junior.

By bobdelt on 12/1/2006 9:43:58 AM , Rating: 3
I do vote. I guarentee if everyone stopped buying cd's and paying money to these record companies they would change their tune a lot faster than if I wrote my congressman a letter or vote for a different one, which I did.

As long as people are willing to put with it, which they are because they are still paying them, the RIAA will stick around.

By rykerabel on 12/1/2006 4:02:21 PM , Rating: 1
Easy choice for me. I prefer Industrial Music and Classical Music. Almost everything I want is either free or independently published.

I also vote regularly. (the next US presidential election is going to be the most entertaining one in the history of the US)

By mindless1 on 12/4/2006 3:32:10 AM , Rating: 2
Listen to individual consumers before industries with deep pockets? If what you claim were true, we wouldn't be in the situation we are.

As a side note, how silly is it for you to pretend you can assume those who have your arbitrary "antigovernment sentiment", aren't voting? Wouldn't it be reasonable to assume quite the opposite, that these are the very people who DO think about, and are already demonstrating more action about these things than those who have said nothing?

Actually the RIAA is listening, they feel their sales are below what they should be- that is consumers sending a message to them, but they were too dense to accept that message and thought if only enough court cases, people would buy more product. Obviously that isn't going to happen, so here we are today, opposed to reps who we feel shouldn't be limited in protecting citizens' rights unless they'd forsworn to do something specific as a running platform.

We dont' elect reps to only do something they'd written on a pre-election list, we had some hope of dynamic actions in consumers' interests. There's no way an agenda could be comprehensively listed, it's not as though you can just vote for someone and assume the outcome of future events. By claiming it's someone else's fault based on who they voted for, you are entirely ignoring that IF the issue and the outcome of the vote were foreseen, obviously these people who are opposed would have voted differently. People are not as passive as you suggest, rather lacking the combined influence that big business has.

By PrinceGaz on 12/1/2006 9:20:10 PM , Rating: 2
The funny (no it's not) thing is.. in Denmark ISPs are forced to block access to AllOfMP3 because it's an "illegal site". They (IFPI) imposed censorship on us based on a lie.

That is bad. Regardless of the legal-standpoint of AllOfMP3, I'm amazed and appalled that an EU member country would force its ISPs to block it.

I've just checked and am pleased to find that at least here in the UK we can freely access, and that this censorship isn't more widespread. If I were you, I'd be worried about what else the current Danish government might in future block because of action by pressure-groups, or worse because the government themselves disapprove of it.

Here in Europe, I thought we would be the last people to see any form of internet-censorship.

By sprockkets on 11/30/2006 5:14:24 PM , Rating: 4
a site shows people are willing to pay a bit for royalties and for convenience without the lock of DRM.

Face it RIAA. It is just as easy to re rip itunes and then share them. Your DRM is MEANINGLESS.

Sure, we know you want to control how things are distributed. But we know you do not have any common sense either.

RE: yes
By Etsp on 12/1/06, Rating: 0
RE: yes
By Sunrise089 on 12/1/2006 3:45:37 AM , Rating: 3
Unlike most of the high-tech companies we read about at AT/DT, the RIAA could probably gain a lot of business advice from the posters here. Seriously.

RE: yes
By cunning plan on 12/1/2006 4:44:56 AM , Rating: 2
Support allofmp3 FTW!!!111 and give royaltys to the bands who deserve it not the record companies for deciding what the band should look and sound like and distributing their CDs with a massive wad added on for themselves.. Think of all the great bands out there who dont get heard becuase the 'record companies' dont think they are what 'we' want to listen to and so dont get a chance to get out there.

There has to be a point where a case of cheap legal music without DRM sets a precidence for legality and shuts corperations up for good..

The internet has moved the music industry on, why cant lables and copyright law move on with it and embrace it for the great tool that it is instead of trying to make it how it was before the file sharing and music sites too off.. Its not going to happen!!!

RE: yes
By jtesoro on 12/1/2006 10:04:04 PM , Rating: 2
While I am no fan of RIAA's tactics and their foolishness, record companies and other "middlemen" are there for a reason. As I posted in another article here in DT, they play a major role in production, distribution, promotion, etc. Since they front a lot of the money for these activities, they also take the risk if things don't pan out. Even though the artist is the one who makes the song, the middlemen play a greater role in monetizing it, and this justifies them getting the lion's share of the revenues.

The internet is of course changing the dynamics of the industry, and that is a good thing. Still, I'm pretty sure that artists in indie sites who want to get the most money from their creations will be best served by going with traditional record companies.

They talk tough now, but...
By smitty3268 on 11/30/2006 6:13:39 PM , Rating: 5
AllofMP3 is not shutting down.

Here's hoping the employees at AllofMP3 don't suddenly come down with food poisoning of some kind. As in, radioactive materials dumped in their food...

RE: They talk tough now, but...
By ajfink on 11/30/2006 10:17:07 PM , Rating: 2
Haha, man, that's really not funny. But it is.

Go AllofMP3!
By ET on 12/1/2006 9:27:25 AM , Rating: 2
I hope that the Russians don't bow down to the RIAA. I have no problem that they'd verify that AllofMP3 is paying royalties, but there's nothing in copyright law about DRM and this fact should be shoved down the RIAA's throat. And the RIAA is really begging for it.

By bbomb on 12/1/2006 7:17:08 PM , Rating: 2
The music industry has already paid for and lobbied the Russian governement to change its laws. Russia next year will change the laws making it more difficult for allofmp3 to stay open.

Money can buy you anything you want and it is no different for the music industry. They want the sites we like shut down so they pay anybody anything to shut them down.

"This is about the Internet.  Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis
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