CNET Networks Entertainment GameSpot: TGS 2008 | GameFAQs | SportsGamer | MP3.com | TV.com | Metacritic
Labels sue AllofMP3.com for $1.7 trillion
By Jim Welte - MP3.com
December 21, 2006 at 09:00:00 AM | more stories by this author

The world's four largest music companies accuse the Russian download site for copyright infringement, seeking $150,000 per alleged violation.

Maverick Russian music download site AllofMP3.com had already faced a lawsuit in the UK, had credit giants Visa and Mastercard yank their payment support, and saw the US government say that Russia's entry into the WTO hinged on its ability to shut the site down.

AllofMP3 home page. AllofMP3 home page.

The other shoe dropped yesterday, when the four major record labels filed a copyright infringement suit against the site's owner Mediaservices. From June through October alone, the RIAA claims more than 11 million songs were downloaded illegally from the site by US customers, and the suit seeks damages at a rate of $150,000 per alleged copyright violation--for a total of a whopping $1.65 trillion.

In a complaint filed in US District Court for the Southern District of New York, the Recording Industry Association of America, on behalf of major labels EMI, Sony BMG, Universal Music, and Warner Music, accused Web site AllofMP3.com of being a "notorious online black market" and a "poster child" for Internet music piracy." The lawsuit was filed against Moscow-based Mediaservices, which owns AllofMP3 and another music site, allTunes.com.

Unlike the peer-to-peer (P2P) file-sharing services that have faced the music industry's legal wrath over the years, AllofMP3 charges for downloads, but does so at a fraction of the market rate, charging less than $1 for full albums.

"[The] defendant's entire business...amounts to nothing more than a massive infringement of plaintiffs' exclusive rights under the Copyright Act and New York law," the industry said in the complaint.

The site has argued that it pays royalties through ROMS, the Russian agency that collects royalties. The RIAA has said that it does not recognize ROMS as a collecting agency for the labels and has never received any royalty payments from the site.

The US Department of Commerce calls AllofMP3.com the world's highest-volume online seller of pirated music, collecting annual revenue in excess of $30 million from its 5.5 million subscribers.

Back to Today's News »

14 Comments

Oldest First | Newest First
The saga of Allofmp3 is quite well known at this point. The company that was apparently following the laws of Russia for licensing music made a name for itself selling DRM-free music at very reasonable points. But AllOfMp3 is not lost forever. They have setup at least half-a-dozen other sites all utilizing the same music catalog, accounting system and website, albeit with a different design in each case. i write wides articles http://hubpages.com/hub/russianmp3site.. about 18 sites like allofmp3.
Posted 08/05/2007 5:40pm
Yep!!!!
Posted 02/28/2007 4:33pm
The major labels needs to stop suing grandmas, children, and rogue Russian websites. $1.7 trillian? Seems kind of high and douchey. Good luck with that.
Posted 01/02/2007 5:55pm
Since the arrival of AllofMP3 and emusic I spend more money on music than ever before - there is a message to the companies in that
If an album costs 2 - 3 dollars I buy loads of them
And most of it is to get CD copies of music that I already bought on vinyl.....
If I could return a vinyl album and get a CD or MP3 duplicate for a few bucks then I would look more gently on the big companies
Posted 12/26/2006 11:12am
Wait, are some of you actually trying to pretend that you didn't know that site was illegal? That's like smokers saying they didn't realize that inhaling smoke into their lungs was harmful!

When a site offers music downloads for $0.10 a song, the music industry isn't making it's money. When a site offers a digital product that the copyright holder owns the rights to, it's illegal to purchase that content, just like if you buy a part of an endangered animal from a poacher.

I'd like to see every site like this closed down. Legitimate pay sites will eventually host all of the songs we want as they compete fairly and with the proper funds going to the music industry. If you want to download content illegally from a site like AllofMP3.com, fine. Just don't pretend you aren't fully aware how illegal it is and don't be mad when the music industry attempts to protect its livelihood.
Posted 12/22/2006 10:16pm
This site gets sued up the ass while numerous torrent sites remian untouched??!!! Seriously................wtf lol xD
Posted 12/22/2006 6:57pm
$1 for full albums that is WOW what can i say that is INSANE!!!
Posted 12/22/2006 6:38am
I'm shocked that the site's claims to legality and to supporting artists through royalty payments have been proven false. I've used the site, not because it's cheaper, but because it's been the only one to have particular 80s songs I've wanted. Good content and good quality downloads are more important to me than the cost.

Virgin, for example, is $1.55 compared to 15c on the AllofMP3, but I don't begrudge that compared to the cost of a CD single in the shops. If they've had a track I wanted, I've bought it from them. If a download site doesn't have a legal/royalties statement, I won't use it, but now, if you can't even trust that? :-(
Posted 12/22/2006 4:50am
It's shady but still legal until proven otherwise. If those crooks running the record labels can't compete with the cheaper competition then maybe they should lower their prices per song. Idiots. No, lets just try to sue the competition into bankruptcy rather than actually beat them online. Thanks for the freedom of choice guys. Buy from you guys at a buck a song or your pals for a buck a song? No thanks. I'll stick with AllofMP3 until the end.
Posted 12/21/2006 9:00pm
All I got to say is OWNED!
Posted 12/21/2006 7:37pm
I don't use that site or support piracy but BOOOOOO record lables suing!
Posted 12/21/2006 3:56pm
funkin ownd...xD
Posted 12/21/2006 3:20pm
It is cool they sell music for what used to be $.10 and is now $.15 a song! And it's legal!! ... Until otherwise proven.

I know another site like ths too. but if I tell people and more and more people join the same fate might fall upong it so "I aint saying nothin"!
Posted 12/21/2006 11:59am
Wait, AllofMP3.com sells pirated music? That's not cool.
Posted 12/21/2006 10:56am
Sign up now to post a comment!
advertisement

Latest News

Is microSD the music medium of the future? Is microSD the music medium of the future?
SanDisk on Monday announced a partnership with all four major music labels in a deal that's set to bring future albums to microSD cards. The preloaded cards, dubbed "slotMusic" media, will be sold at brick-and-mortar retail locations as an alternative to the CD.

Tags

add
Be the first to tag !
Data Warehouse Clear Gif