The website, run by MediaServices Inc., has long protested its
innocence. Yet the prices are remarkable: a British shopper can
download an album from iTunes Music Store for £9.79; or typically
about £0.75 from AllofMP3, which prices its downloads by file size.
And the choice is enormous. All those Beatles albums that Apple is
not allowed to sell can be found at AllofMP3.com for under a
pound.
According to MediaServices, everything is licensed by the
Russian Multimedia and Internet Society (ROMS) and the Rightholders
Federation for Collective Copyright Management of Works Used
Interactively (FAIR). MediaServices says that it pays licence fees
"subject to the Law of the Russian Federation." It adds that it is
not responsible for the actions of foreign users.
It has been suggested that the service falls through a loophole
in Russian law; that public performances of recorded music do not
require the authority of copyright holders; that the website pays
ROMS and ROMS pays the artists; and that AllofMP3 operates within a
grey area of the law.
But this is nonsense, according to the IFPI which
represents the recording industry worldwide, with over 1,450
members in 75 countries, including Russia.
"AllofMP3.com is not a legal service either in Russia or
anywhere else," Lauri Rechardt, head of litigation at IFPI, told
OUT-LAW today.
Rechardt said the site is distributing music without any
permission from the artists or copyright holders.
"Unlike all the legitimate sites, it does not pay artists or
copyright holders so it is effectively stealing from those who
create music," he said. "Like most things that appear to be too
good to be true, AllofMP3.com is not what it seems."
Regarding the claim of a licence from ROMS, Rechardt described
ROMS as "a Russian organisation that claims to be a collecting
society."
He continued: "ROMS has no rights from the record companies
whatsoever to licence these pieces of music. ROMS and AllofMP3.com
are well aware that record companies have not granted authorisation
for this service."
He urged British consumers to stick to legal services.
"Downloading from AllofMP3.com is illegal in most countries," he
said. "Allofmp3.com clearly operates outside the international
standards for copyright law, established by the EU Copyright
Directive and World Intellectual Property Organisation (WIPO)
treaties."
Rechardt continued: "Even if one took AllofMP3.com’s license
from ROMS as legitimate, which it is clearly not, it would still
have no extra-territorial effect."
The site itself acknowledges: "You are not able to download
audio and video from AllOFMP3.com if is (sic) in conflict with the
laws of your country of residence."
But recent figures from market research firm XTN Data suggest
that AllofMP3's market share, at 14%, is second only to iTunes,
with 44%, in the UK. That puts it ahead of Napster (8%), Wippit
(6%) and MSN (6%) in digital music sales.
Legal action has begun. There are two separate criminal
proceedings ongoing in Russia. The public prosecutor in Moscow is
taking a former director of MediaServices to trial. And a second
case against a current director of MediaServices is in the
investigation phase, according to the IFPI.
In May 2005, a German court granted a preliminary injunction
against the site saying that it had no right to offer music in
Germany without the proper rights holders’ consent. In
October 2005, the Italian authorities shut down a portal,
allofMP3.it, and began a criminal investigation into it.
British consumers who buy music from an unlicensed site are
infringing copyright. In theory, they could be sued by the music
industry. However, the industry's legal action to date has targeted
only those who upload music for others to access, using
peer-to-peer services like Kazaa.
