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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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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.

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