AllofMP3.com is a site that sells music for 1/10 what iTunes does. They are located in Russia and obey Russian laws but their services are classified as illegal in the United States (as well as many other countries).
Investigators claim that AllofMP3.com does not pay royalties to artists for selling their music. It has been a long time coming but AllofMP3.com has spoken their mind about this and other issues they are constantly criticized for:
The US government officials and politicians have been demanding lately that the Russian authorities shut down allofmp3.com, alleging the site is pirate. Otherwise, they threaten Russia with sanctions, including blocking its entry to WTO. In this regard we would like to make a statement: 1. The site AllOfMP3.com belongs to a Russian company and for 6 years it has operated within the country, in full compliance with all Russian laws. Throughout this period the various government offices have scrutinized site’s legality and have not found any breach of the law. So far there has been no decision by any Russian court contesting the site’s legality. 2. The Russian site AllOfMP3.com is not operating or advertising its business on the territory of other countries. 3. The site AllOfMP3.com does regularly transfer substantial amounts of royalties to the Russian organizations for collective management of rights such as ROMS and FAIR, which have granted the site licenses to legally deliver music through the Internet. 4. The site AllofMP3.com reserves the right to take all steps necessary to protect its business reputation. We call upon everyone to take a thorough and unbiased view of the site’s legality. 5. On September 1, 2006 the changes to the Russian copyright legislation will come into force. Since January 2006 the site has been making direct agreements with rightholders and authors at the same time increasing the price of the music compositions and transferring the royalties directly to the artists and record companies. The aim of AllofMP3.com is to agree with all rightholders on the prices and royalties amounts by September 1, 2006. 6. We believe in the long term and civilized business based on respecting the law, considering the customers’ demands as well as the interests of both national and international rightholders. The AllofMP3.com Administration June 6, 2006 Moscow
There are a few other Russian music sites that sell low-cost music just like AllofMP3.com does. One of them is MP3Search.ru. While AllofMP3.com sells song for 2 cents per megabyte, MP3Search.ru sells songs for a flat 10 cents (if you purchase an entire album they give you a 10% discount). Both of these services are significantly lower than any music source in the United States which is why many people are turning to Russian sites for their music.
Are organizations like the RIAA going to start attacking these Russian sites even harder? I wonder if the United States will actually be able to penetrate the Russian Government enough to take down these sites. It might be hard since it couldn’t be done with The Pirate Bay!
News Source: Slyck File Sharing