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Someone at work just shared this information with me. Interesting situation allows legal operation of this Russian company that charges for downloads of IP it does not have the right to distribute. It may be legal, but it does not really get around the moral implications of file sharing (if your personal stance is that sharing = theft)
Allofmp3.com let off the hook
3/7/2005 11:04:20 AM, by Eric Bangeman
Russian online music site Allofmp3.com will continue to operate, after Russian prosecutors concluded they cannot take legal action against the music store. Finally prodded into motion by continuous lobbying by the RIAA, International Federation of the Phonographic Industry, and other copyright holders, Russian law enforcement officials began an investigtation of the service two weeks ago.
Allofmp3.com argued that it had the right to sell the tracks through an agreement with the Russian Multimedia and Internet Society. That claim looks very questionable at face value, especially since the Russian site offers selections from groups which have not released their catalogs online yet, such as The Beatles. However, the Moscow Southwest regional prosecutor's office has apparently decided that a loophole in Russian copyright law (it only covers infringement via physical media, e.g., CDs and DVDs) allows Allofmp3.com to continue operations. In addition, Russia employs the concept of compulsory copyrights, where the copyrights belong to the artist or music label, but copyright owners are required to license it to anyone who making a request.
It looks as though the IFPI and RIAA will have to grin and bear it when it comes to Allofmp3.com. Despite the fact that the service is not licensed to distribute the music ? a fact acknowledged by the prosecutors ? it appears to be perfectly legal under Russian law. Now it is up the them to figure out the best way to respond (and compete with) the Russian service. Allofmp3.com offers high-quality recordings (even lossless if that's what you want) at a low price to anyone, anywhere, on any platform. If the site continues to grow in popularity, it may give the labels second thoughts about raising their prices.
It will be interesting to see if this "legitimacy" translates into more business for the underground giant. Many readers have reported unease at sending their credit card information to a too good to be true (read: shady) online music vendor located in Russia. In the beginning, this wasn't much of a problem for Allofmp3.com, because they accepted PayPal, and its much harder to get ripped off using PayPal than it is by willingly handing over credit card information. However, PayPal eventually pulled the plug on their participation, considering the site's business to be questionable at best. With at least an ounce of legitimacy added to Allofmp3.com, at least in terms of Russian law, that decision may be reversed. Do you feel any safer buying music from this site now?
Allofmp3.com let off the hook
3/7/2005 11:04:20 AM, by Eric Bangeman
Russian online music site Allofmp3.com will continue to operate, after Russian prosecutors concluded they cannot take legal action against the music store. Finally prodded into motion by continuous lobbying by the RIAA, International Federation of the Phonographic Industry, and other copyright holders, Russian law enforcement officials began an investigtation of the service two weeks ago.
Allofmp3.com argued that it had the right to sell the tracks through an agreement with the Russian Multimedia and Internet Society. That claim looks very questionable at face value, especially since the Russian site offers selections from groups which have not released their catalogs online yet, such as The Beatles. However, the Moscow Southwest regional prosecutor's office has apparently decided that a loophole in Russian copyright law (it only covers infringement via physical media, e.g., CDs and DVDs) allows Allofmp3.com to continue operations. In addition, Russia employs the concept of compulsory copyrights, where the copyrights belong to the artist or music label, but copyright owners are required to license it to anyone who making a request.
It looks as though the IFPI and RIAA will have to grin and bear it when it comes to Allofmp3.com. Despite the fact that the service is not licensed to distribute the music ? a fact acknowledged by the prosecutors ? it appears to be perfectly legal under Russian law. Now it is up the them to figure out the best way to respond (and compete with) the Russian service. Allofmp3.com offers high-quality recordings (even lossless if that's what you want) at a low price to anyone, anywhere, on any platform. If the site continues to grow in popularity, it may give the labels second thoughts about raising their prices.
It will be interesting to see if this "legitimacy" translates into more business for the underground giant. Many readers have reported unease at sending their credit card information to a too good to be true (read: shady) online music vendor located in Russia. In the beginning, this wasn't much of a problem for Allofmp3.com, because they accepted PayPal, and its much harder to get ripped off using PayPal than it is by willingly handing over credit card information. However, PayPal eventually pulled the plug on their participation, considering the site's business to be questionable at best. With at least an ounce of legitimacy added to Allofmp3.com, at least in terms of Russian law, that decision may be reversed. Do you feel any safer buying music from this site now?
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