AllofMP3 legal issues – operators deny breaching copyright laws

If any of you have used http://www.allofmp3.com/ to download mp3’s, you may want to get in quick if music giants like EMI Group, PLC, Warner Music Group and Sony BMG have anything to do with it.

AllofMP3 went on a large scale PR campaign earlier in the week to quash accusations of it being branded a pirate website by some music industry big wigs.

The Russian operators of AllofMP3, Mediaservices asserts it is running a legitimate business not a free mp3 downloads facility.

"The company has been unfairly characterized as a pirate Web site. Nothing could be further from the truth," said Vadim Mamotin, the company’s director general.

Stating that 15% of every sale goes to the Russian Multimedia and Internet Society Mamotin said The society has "offered to pay the record companies the royalties they collected but been rebuffed,"

Here is what AllofMP3 released earlier in the year in relation to the pressure being applied by the US government to stop operations.

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