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
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
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.
quote: 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.