December 27, 2006

AllOfMP3 Responds To RIAA’s $1.65 Trillion Lawsuit

Michael Arrington

72 comments »

Russia-based, DRM-free music download site AllOfMP3 made a brief statement today in response to the RIAA’s $1.65 trillion lawsuit, filed in New York against them. In effect, they told the RIAA to go pound sand:

“AllofMP3 understands that several U.S. record label companies filed a lawsuit against Media Services in New York,” an unnamed “senior company official” stated. “This suit is unjustified as AllofMP3 does not operate in New York. Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3 operates legally in Russia. In the mean time, AllofMP3 plans to continue to operate legally and comply with all Russian laws.”

AllOfMP3 may not be around much longer, given that their own government has promised to find a way to shut them down, but they are certainly going out with a little panache.

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Trackbacks/Pings (Trackback URL)

  1. The Muso » Festive News Wrap
  2. Nerd Approved - News and Reviews - » AllOfMP3 Delivers A Big “Kiss My Ass” To RIAA On $1.65 Trillion Lawsuit
  3. BuzzRun.com » Archive » Get ‘em while you still can (all of mp3 that is)
  4. Behind R4NT » Blog Archive » RIAA’s $1.65 trillion lawsuit
  5. Techzi » Blog Archive » December 28 - Economic Imbalance
  6. Militant Geek Custom Shirts » Blog Archive » AllOfMP3 Sued for $1.65 Trillion; Cancels Travel to New York
  7. The Pirate Bay Moves Into Video Streaming
  8. The Pirate Bay Moves Into Video Streaming : Forecast-Blog
  9. RazorSharp iPods & Raw Gadgets » Blog Archive » The Pirate Bay Moves Into Video Streaming
  10. Crunchyroll Pushes the Envelope On Video Copyright
  11. Crunchyroll Pushes the Envelope On Video Copyright
  12. Crunchyroll Pushes the Envelope On Video Copyright « iBrian

Comments

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  1. Tarun Chandel

    Aarrghhh….. problems of local laws and global web ….

  2. Mike Blasdel

    ^.^;; Can’t say I’m surprised by their response. Its almost the exact same problem that the Swedish have with the Piratebay. Local law precedes International law. As long as AoMP3 has followed Russian law, then all the RIAA can do is sue ROMS or the Russian Government itself.

    Sure the state departments of both countries want this resolved, but any movement by the Russian government outside of normal litigation would be seen as nothing less then the US dictating Russian policy. Last I checked the Russians have a very tolerance for that.

  3. jhh

    This is too funny - how do you come up with 1.6T ?

    Their stupid lawsuit just gave allofmp3 1B worth of free advertising.

  4. edwardk

    So if the RIAA is bent on eliminating yet another music distribution mechanism I have a proposition for them. Why don’t they get together with Apple, Microsoft, etc. and work out a scheme where customers can download music with DRM for 5 cents or download it in unprotected MP3/WMA format for 99 cents. It would be an interesting experiment if nothing else.

    I don’t know about the rest of you but I would pay the 99 cents for music if I knew I actually owned it and could play it on any device.

  5. al

    can we get some background on the allofmp3 team/story? is there anything interesting there?

  6. Fashion Industry Ceo

    not 1.6 mil, or even billion, but 1.6 trillion theres not enough music in the world!!!lol

  7. David R.

    @ al

    Don’t ask. You probably don’t want to know, if you know what I mean *wink*

  8. the apostle

    The problem is that U.S. citizens are using a Russian website that is violating U.S. laws. Acting like it’s okay to steal from artists and companies that represent them isn’t really “going out with a little panache”; it’s more akin to going out like Napster, which proves that some people don’t learn from history.
    Bottom line - theft is theft no matter where you locate your “business”.

    I’ve noticed Mr. Arrington includes a cute little copyright at the bottom of his web content. I guess he wouldn’t mind if someone made money off that content without paying him (i.e. violating his copyright protections). We could put that to a hypocrisy test. Any takers?

  9. Andrew Michael

    $1.6 Trillion seems a bit much…

    To RIAA: Don’t go and spend it all in one place

  10. Dempsey

    Hey apostle, how `bout a potato chip up our @$$ test? You passed.

  11. Michael Arrington

    Apostle - your comparison is flawed. Sure I am upset when people take our content and repost it with google ads. But people don’t download music to make money from it, they download music to listen to it. And just like we have alternative ways of making money while our reader get to consume our copyrighted content for free, the music industry is going to have to do the same. The days of DRM are numbered, and I believe the days of artists getting paid for digital recordings of their work are also numbered. It may not be fair, but it’s reality. They’ll have to make money in other ways - concerter, merchandise, physical CDs, etc. A lot less money will be flowing into the music industry, and that is a good thing.

  12. Pro-SEO

    “Bottom line - theft is theft no matter where you locate your “business”.”

    What you call “theft” isn’t illegal in Russia, And Russia is where the company is located. In case you didn’t know, American law means nothing in other countries.

  13. hjk

    Apostle:

    “The problem is that U.S. citizens are using a Russian website that is violating U.S. laws.”
    - If that’s the problem, go after those U.S. citizens.
    - A Russian website can only violates Russian law, not U.S law. U.S is not the centre of the world. AllOfMP3 can do whatever they want as long as it doesn’t violate Russian law. It’s not their problem if Russian law does not protect the music industry.

    “Acting like it’s okay to steal from artists and companies that represent them isn’t really “going out with a little panache”; it’s more akin to going out like Napster, which proves that some people don’t learn from history.

    - it isn’t “stealing” if it’s not illegal according to Russian law.
    - Napster was a U.S company, and it violated U.S law, that’s why it was shut down.

    “Bottom line - theft is theft no matter where you locate your “business”.”

    - Bottom line - theft is theft only when the law says it is. Apparently the Russian law doesn’t say that.

    Any porn is totally illegal in where I live, but thanks to the Internet, anyone online can visit millions of porn websites, including those hosted in U.S. Does it mean those U.S porn websites operators can be sued because they violated my country local law? You must be crazy if you say “YES”.

  14. doug

    $1.65 trillion (RIAA lawsuit) > $1.584 trillion (GDP of Russia)

    Absurd.

  15. Adrian Keys

    RIAA obviously has no intention of collecting this money…its meant to frustrate AllOfMP3 to death…literally……..

    And with additional pressure from the Russian Govt its just a matter of time…

  16. Sean

    From my dealings with folks/companies in Russia, I’d say that they will keep doing what they are doing. Lotsa smaller companies than AllofMP3 in Russia and ex-soviet republics are doing similiar activities that would be termed illegal in the US of A and other countries. The problem is, Russia ain’t the USA.

    Come up with a solution that works here is my answer. Try not to spend all your energy barking up that tree in Russia with a very small chance for a return. Happy New Year folks.

  17. Beatbox

    I don’t know, but $150,000 per offense probably adds up to $1.65 trillion when you add up all the copyright violations.

  18. Vance

    hjk -

    - it isn’t “stealing” if it’s not illegal according to Russian law.

    I am so sick of the way the world thinks sometimes. Just because you follow the law - in whatever country - still does not mean you’re doing something right. The bottom line is they are not paying the artists or the copyright holders for their work, and that IS stealing, regardless of what the local law says. Sometimes you have to look beyond the law to discover what is truly right and wrong. You can follow the law perfectly your whole life and still be a scoundrel.

  19. kingharvest

    RIAA is a perfect example of a corporate entity (read record companies) that screw up royally and then spend the next 20 years trying to make up the money they lost because of their stupidity.

    Remember, the labels represented by RIAA are not losing money, they are simply not making as much money as they think they are entitled to. They may have a point.

    But bear in mind that they really are not talking about the money that artists are entitled to, but their labels.

    It is despicable, I think, that these anonymous malcontents (go to their website sometime and see if you can find a single contact name or email address) are treated like saviors of the artistic community in the mainstream press when in fact they are doing everything they can with the other hand to claw-back money from these very artists.

    And now, once again, the press will present this trillion dollar adventure as yet another portrait of a young artist in need of royalties.

  20. fede req

    i think you have to think mike as i am a russian webmaster called AllofWeb2.0, and i copy/paste all your content and make a lot of money from it because in my country its legal to do it.

    i think that is what apostle wanted to say.

    i think that they will have to find alternatives ways of making money too, and that the actual method have they days numbered, but the example above is right too.

  21. TechTalk

    I think a lot of the commentators here are forgetting that copyright laws are agreed upon to be cross-border, internationally binding. It’s perfectly within the artists’ rights to go after international corporations/organizations/individuals who break these international laws. Similar action has been taken with the software and movie industries.

    Another gray area to consider is that while, yes, the corporation is based in russia, by being on the web it is operating de facto under international regulations and as a global corporation, bound by international law. they accept credit from and provide service and product to individuals in other countries and so must abide by the laws that have been agreed upon to facilitate such commerce. On a similar note we have the recent cases with off-shore gambling (perhaps this is the solution for the riaa - sue the cc operators to stop paying any bills from allofmp3? hmmm …)

    One last note unrelated to the legality - anyone who signs up using a cc# with allofmp3 i would consider a complete fool at this point. What do you think is going to happen to their beautiful, verified and active database of user names, addresses and cc info when they finally give up the ghost? Man, it’s going to make the whole VA laptop drop look like a pebble in the ocean when that shiznit hits the black market!!!!

  22. Obet

    I want to see the list of albums/ songs that make up the $1.65 trillion. It would be interesting. What if it was all Russian artists?

  23. Florian Cervenka

    “I am so sick of the way the world thinks sometimes. Just because you follow the law - in whatever country - still does not mean you’re doing something right.”

    @Vance

    Honestly.. who really gives a shit if whatever is the right thing? Almost every person is trying to make personal profit and that is in my opinion exactly the opposite to the right thing. For instance communism/marxism hse a great idea behind it - but it just doesn’t work because there are people that are just interested in making personal profit and they have the power to.

    “i think you have to think mike as i am a russian webmaster called AllofWeb2.0, and i copy/paste all your content and make a lot of money from it because in my country its legal to do it.”

    @fede req
    Russia has copyright laws - so that is in fact illegal. allofmp3 is not breaking any of the Russian copyright laws or any other. It simply does not matter if someone feels that it is not OK - because it can be done without punishment.

    A question to you all: is it any more legit to sue people for fortunes if they perhaps downloaded some songs from the internet in comparison to what allofmp3 does? Who of those is doing more “the right thing”?

  24. Tinsel Town

    apostle’s argument isn’t all that flawed. allofmp3.com sure makes money from stealing the mp3’s and distributing them.

  25. Pro-SEO

    @Vance #18

    A crime isn’t something that you just feel is “wrong”. A law has to be broken.

    If you want, you can argue to have Russian law changed, But as it stands what they are doing is perfectly legal in the country in which they are doing it and as such no case should be brought against them.

  26. Notsure

    Mike, I have to disagree with your comments on this one. To say that “the days of artists getting paid for digital recordings of their work are also numbered” is just plain stupid.

    The entire music industry would come to a crashing halt it all of the sudden the music industry goes “oh well, lets not charge people for music but still pay for the recording, production, advertising, licencing costs” - not only is it not a viable business model, the powerful people involved in the music industry are just not going to let it happen.

    I also dont agree with your statement regarding “A lot less money will be flowing into the music industry, and that is a good thing.” All this does is mean less people will be attracted to the industry at all so really your statement is like saying “A lot less money will be flowing into the music industry, meaning a lot less people will be playing music, meaning less music and thats a good thing”.

    As bad as DRM is - without it, muso’s would just not get any money and I dont think any major corporation will support it. To change DRM is to inherently alter copyright law of every nation on the earth? You think thats going to happen - no fking way is that going to happen.

    I wonder if DRM did “magically disappear” tomorrow what the effect would be? Let me tell you what I think:

    1. Everybody who wants free music goes FKING YES!
    2. Every Big Artists sues just about everyone they can! Think Beatles, Rolling Stones - you think they will just sit back and let people listen for free and get no money? You have rocks in your head
    3. Ever big label will sue every body they can
    4. Courts become clogged to the shit with law suits
    5. All 2-4 happens again ARIA and every other similar body

    I dont like DRM, but I dont think it will go in the near future. Labels WILL NOT support it, Big Corporations WILL NOT support it and Bands will NOT support it.

    My 2 cents

  27. Andrew

    1.65 Trillion = 150,000 x 11,000,000 mp3 copyright violations. I think it’s really bullish of the RIAA to even claim a suit that large.. I know the RIAA has a job to do, but that says a little much..

    It would be better if they did however cut all the crap between the two and struck some kind of deal, even legit I’m sure allofmp3 especially with recent “advertising” would still do great.

  28. Peabody

    Allofmp3.com is run by the mafia - russia wont shut it down - otherwise there is going to be a hell of a lot more “disappearances” in the local authority

    “are you looking at me……………at you looking at me………….vladimr get me the concrete shoes………..”

    :)

  29. Beatbox

    I agree w/ #26 - Mike, you don’t know jack about the music industry.

  30. Tommy

    Sigh:

    1) Violating copyright isn’t theft. It’s violation of copyright. Stop comparing the two. When I “steal” an MP3, the original owner isn’t out their copy. It’s still illegal, but it’s not the same thing as theft. Attempts to paint it as such are just attempts to provike knee-jerk outrage.

    2) Violating copyright is not “wrong” in some way that transcends the law. Intellectual property rights only exists as a matter of law. IP owners only have those rights because the law says they do. It’s not like owning physical property. See #1 above.

  31. Jesper Bram

    Why do you need DRM (or any other copy protection)? Because people do not find your product worth what you charge.

    Why do AOMP3 have such success? Because people is more than willing to pay the price they charge and it’s more convenient than searching for pirated MP3’s.

    Always wondered why all the whiners can’t see that it’s no because people want to leech free music from the starving artists. It’s because right now your options are; expensive DRM infested files vs. free (in terms of charge not time) pirated files.

    People are lazy, and that’s good for business. If the has-been-geezers of the music industry would spend some time working out at model that would be so convenient for people that they just couldn’t be bothered to copy or download music, we wouldn’t be having this discussion. But instead they throw around silly lawsuits, like kids laying screaming on the floor because mommy said “no”.

    But eventually kids grow up, and old geezers wither away and die. Hopefully someone who see a business opportunity rather than corrupted thieves will come around.

  32. JHSA

    what’s incredible, is that the RIAA can’t see that they sell a lot, because they have a very good selection of encoded formats, and because they don’t have DRM. They should embrace them, or buy them, and start selling music on-line.

  33. Rob

    Notsure:
    >As bad as DRM is - without it, muso’s would just
    >not get any money and I dont think any
    >major corporation will support it.

    So DRM stops piracy does it? Fact is people who want to can get any major label music sans DRM for $0.00. The only thing DRM protects is Apple’s market share.

  34. dave

    So is it illegal to buy songs from allofmp3? I never realized how dirt cheap they are.

  35. Rajeev Vashisht

    Cool man,

    If the law of the land is not disturbed then what the heck,

    http://www.tekno-world.blogspot.com

  36. the apostle

    Michael, you and I will have to agree to disagree on this one. You can’t be the moral arbiter insisting that artists work for free any more than they can do the same for you. Should Microsoft’s software be free? Should Oracle’s software be free? Intellectual property (IP) rights can’t be dictated by anyone other than the IP creator.

    Why is less money flowing into the music industry a good thing? That’s ignorant thing to say - unless you can fully explain what you mean. If an artist wants their IP for sale only, then that’s what the artist gets - it’s called rights management. If someone violates that rights rule then that artist will have the support of the U.S. government and other governments who recognize U.S. copyrights (which will be all of them soon), especially when it comes to IP.

    You can’t dictate how the music industry does business. You can, however, demonstrate an alternative model to the music industry that makes the same amount, or more, money. If you can do that, then you’ll have them onboard. But, an artist, or record company, can still opt-out of any model they don’t like and that’s entirely up to them. I’d like to see an expansion on yoiur idea that DRM is soon to perish. Feel free to articulate that in a blog soon. I’d love to see your ideas.

    Record companies and artists are changing the way they think, but it’s only because technology originally enabled people to steal their property easier. Now there’s a few tangible benefits that the music industry can see and the paradigm shift has been fully underway for several years now.

    Ultimately, if you do something “The Man” doesn’t like, “The Man” will find a way to win out over those with fewer legal resources, and you can bank on that!

    Personally, I like Yahoo Music and do most of my consumer business there. If a better service comes along, I’ll be checking that one out. Hopefully, Michael, I’ll be hearing about that better service from TechCrunch if and when it arrives.

  37. NZN

    31. Jesper Bram - I read every post, and yours is closest to the way it will be… the why of what matters.

    This suit by the RIAA is just a business process. Those come and go. Leadership drives the creation and use of them. And as we all know, new leaders can be both good and bad. So I would make no assumptions about the socio-economic market that your digital-mindedness is contributing energy towards.

    Our society is waiting for leadership. VC’s, Foundations, Governments, Schools, Social Entrepreneurs… are searching for and investing in leadership. It is working. The Internet is waiting for leadership. As a substantive place with a perceivable physical form akin to VC’s, Foundations, Governments, Schools, Markets… the internet is the most fertile ground in the entire socio-economic universe we have explored.

    Why?

    All of us want to use the machine, the pipes :-), the end points, the gears and circuitry, the code … to make it work for us. We want to automate process and procedure so that we can spend time on our own unique interests and perspectives. This is possible on a nation by nation, culture by culture, community by community, network by network, family by family, person by person basis. But what about allowing those different versions of the one global Internet to communicate with one another?

    In other words, what about inter-operability? Unique businesses have unique ideas about this concept. And because suppliers today create the experience that consumers enjoy using on the Internet, suppliers get to unilatterally set the terms of use.

    So the revolution that many are aiming their efforts towards is the the revolution of “We the people…”. We are talking about abbreviating the structure of our own government to make it more powerful in its “pursuit of happiness” in the future world being built today.

    Why would “We the people…” revolt in unison then? What exists that we all lack that would make all of us more powerful if we merely had it. If we merely appropriated it. Took control of it. Owned it.

    What makes America great on an individual basis to all of us?

    YOU… must own it.

  38. Patricia

    The tech industry in Russia and eastern Europe is very interesting right now. I will be interested in seeing how this plays out.

  39. Ramon

    I agree with Mike, the days where musicans get paid outright per album purchase by the listener are numbered.

    The future is subscriptions and long-term revenue streams. That’s the model that makes the most money, and that’s what sells. People don’t want to go to Blockbuster and rent each movie singlely, they want to subscribe to a $20 or whatever amount per month and have unlimited rentals. People don’t want to pay for every phone call they make, they want a $20 flat rate for all domestic calls.

    YouTube is proving that people are making the switch to remotely stored information rather downloading it locally, and Yahoo Music is doing pretty well with subscription-based on-demand music streams.

    The future is the following, so take note: the internet will be ubiquitous and available wirelessly everywhere, and subscriptions (whole libraries) and mini-subscriptions (libraries of single labels or single artists) will be sold for on-demand music streams that go to internet-capable mobile devices. Give it about 10 years, probably less.

    Major artists or labels will sign with the largest stream providers and get cuts based on how often people listen to their music. “Independants” will let people subscribe to their own feeds, or sign with stream providers with narrowed musical tastes (something like - “Blue Notes, Inc. - providing you with all Jazz on-demand music from artists with soul”).

    New artists will hook up with some company that can gets their content to major streams, but keep large cuts of profits. Some tech savvy musicians will figure out a cost-effective way of doing it themselves. It will catch on (”streaming at home!”) and become the next pod-casting.

    10 Years from now, kids won’t believe people left their house to buy a disc, and everyone will still be upset with the music industry, only it’ll be because Future Pop-Singer has 100 million subscribers but hasn’t released anything new in years. People just stay subscribed because they get it comes free when they subscribe to HBO.

    The RIAA will be suing people for using fake accounts or phishing accounts to listen to streams they didn’t pay for.

    /time for me to go back to the future. Goodbye citizens of Old America.

  40. Jason

    I have spent a couple hundred on alltunes/aomp3 this year alone.
    I have spent at least that on cds, I dont even have a cd player anymore…
    I like music, I rip it, use it on my psp, ipod, cellphone, whatever I decide to use that day.

    Here is the skinny…
    I will buy good quality music in the least expensive format possible… I will not pay for DRM tracks…no way, no how.

    I am not stealing when I buy from aomp3.com, I am paying for a service. If they are stealing or doing something illegal they will eventually get shutdown. Then I will find the next cheapest way to buy unencrypted unfettered music.

    Getting music for free just isnt worth the hassle anymore… when napster died that did to… the quality of free mp3s just sucks, not to mention the spam/spyware/virii etc…

    I agree that artists should get paid…duh.

    The truth is that Record companies NOT artists make all the loot off music sales online or other. Artists make more from appearences, concerts, and other creative stuff. The only artists that make money from cd sales are independants marketing themselves.. and they DO give away music to gain a following… just look at myspace. They make money from playing out. Their faithfull will line their pockets out of loyalty…not royalty.

    Riaa should just disappear…the money wasted in their indeavors only takes away from the pie americans have to spend… they are just as worthless as the IRS.

    The fact that I wasted time writing about this has just wasted a half of a life hour… Currently worth about $6.50 or 26 songs at alltunes, 6.5 songs from itunes… Or 2 gallons of gas ;)

    Jason - aka unzapped
    dookster.com

  41. Louis-Eric

    A few fantastically flawed arguments to be found here; my favourite: “Why do you need DRM (or any other copy protection)? Because people do not find your product worth what you charge.”

    By the same logic, you should also remove the walls and security systems around your favorite jewelery store and leave the inventory unsecured at night in the parking lot. If people leave the stock alone, then it must be that they value the product and what you charge for it; if they go to some effort to take it, then by your logic they do so because they do not agree with the value that you affix to it (and, besides, it is worthless anyway). This is short-circuited logic at its finest.

    People copy things because they want the product, like what they get, like that they won’t have to spend money for it, and can do it at home while no-one is watching; they do NOT engage in such practices out of some personal philosophical desire to alter abstract market dynamics.

  42. pirate o'hara

    Michael Arrington for Russian president!!! go Michael.

  43. Marvin Chery

    All of MP3 should just be regulated so that artist get their share of the money.

  44. Survival Shows

    Better spend my $ b4 they’re gone ;) LOL

  45. Calvin

    I like Peter Jenner’s approach with a blanket license - granted, its rather socialistic, but it’s the only way everyone wins…

    http://www.theregister.co.uk/2.....er_jenner/

  46. Yakito

    My country owes less money than AllOfMp3, that number is just stupid

  47. Total Stranger

    The world is not perfect. Every side of the conflict has its own truth. Sometimes there more then two sides of the conflict such as authors, media, studios, national and international laws, the consumer and many more. DRM in the way it exists right now is a compromise among countless parties. However there is one thing that can shatter a compromise; and this is web 2.0. New environment dictates new equilibrium. This is pretty much similar to physics low. What it means, that DRM in the way it is now, is already dead. To work out type of DRM requires a willingness of all parties to reassess the situation. The ridiculous law suit from RIAA is an example of that one side is still leaves in the history and doesn’t want to change anything.
    Is it bad or good, doesn’t really matter.

    Cheers and Happy New Year!!

  48. Rob

    >I like Peter Jenner’s approach with a
    >blanket license - granted, its rather socialistic
    >but it’s the only way everyone wins…

    Being taxed by the majors for having a computer? No thanks.

  49. Jesper Rønn-Jensen

    Access is completely blocked from Denmark, Europe. The screenshot here is from the biggest ISP in Denmark (TDC) and refers to a ruling in the court of Copenhagen against another ISP.

    Any other countries that have also blocked access based on local court rulings?

  50. Jesper Rønn-Jensen

    What? Screenshot missing above. Here’s link to screenshot: http://www.flickr.com/photos/jesper/336756697/

    (if that fails, my name points to the Flickr photo :)

  51. Bob Knight

    I agree with 26 - saying DRM should is useless is just plain stupid. Mike how about you provide advertising space for free? Not too sure you would be happy if all your profits were pulled from out in front of you like free music would do to muso’s.

    And saying that “record companies take all the profits” - yes they do, and its only the non-music stars that are complaining. The rise of an artist from a nobody to a star is a huge risk - its like a VC firm - they take a risk on a person (company) and expect a big return out of them. Making somebody a star costs the Record companies shitloads upon shitloads of dollars - how can you say VC’s are any different?

    They take X% of company and expect a massive return. Maybe Sequoia were bastards to Youtube as they ended up with 400+ mil. How the logic any fking different?

    Its not - record companies want to make profits like everyone else. The music stars dont give a shit because they earning a crapload anyways, get all the sex they want and get to play music.

    So stfu everyone who says “music labels are taking all the money”

  52. Alex Serebryakov

    Let me introduce a new perspective to this issue. As an insider, living in Moscow, Russia. This lawsuit is just plain stupid.

    First of all, yes, russian legislation allows this kind of activity. And… while is might seem stupid or unfair, there’s nothing wrong with the law from a ‘fair point of view’. I can provide you with details, if you wish.

    There’s just one big THING that is terribly wrong. And it’s not about AllOfMP3 or any other (and there’re dozens) website that is supposedly ‘breaking the law’. It’s about negotiation.

    I couldn’t possibly dream of buying legal CDs about 7-8 years ago. They were totally non-existant. But now (here comes the surprise…) there’s a plenty of ‘light-weight’ versions of legal CDs and DVDs that come at a lower price. Most of the russian blockbusters are not pirated. People are negotiating - both sides.

    As long as RIAA thinks it is ok to sell music at $15 per disc, they’re doomed. This issue is not about Russia or this particular music store - I’m sure there’re plenty of other countries that allow this ‘piracy’. They should start negotiating, that’s the only possible way out.

  53. Mike

    @TechTalk
    Sovereignty. International Law is a misnomer, as each Sovereign country makes its own laws. International pressures and agreements are used to help provide constancy in the laws of various countries. The problem is that Russia is not a member of the largest agreement that forces IP law, the World Trade Organization. As such (If what I read is true.) if AoMP3 acted within Russian law, then there are only 2 ways to force AoMP3 to do anything. One, by braking Russian Sovereignty (IE War). Two using political pressure force a change in Russian law to be consistent with International IP Law. Either way the RIAA will see not a drop of the money they are demanding.
    You are also mistaken in seeing AoMP3 as an international corporation. Even though the site is access able by anyone with an internet connection because the company has no offices or other places of business it falls unitarily under Russian Law as it pertains to the Internet.

  54. Eric

    Allofmp3 is in full compliance with Russian legislation, and honestly pays royalties and taxes.

    $1.65 Trillion just stupid ;)

  55. Debbie Davies

    If it’s ok for U2 to relocate their music publising business from Ireland to the Netherlands to avoid taxes, then it’s ok for me to buy their songs from a business based in Russia instead of the UK where I live to avoid paying higher prices.

  56. David Mackey

    Is what AllofMP3 is doing illegal in Russia? If not, how will Russia shut them down?

  57. cvos

    Many U.S. companies (such as Accenture) are incorporated offshore so they do not have to comply with US laws and regulations.

    If the music companies incorporated in Bermuda, the tax savings realized would probably offset their costs of litigation and music copying.

    How will anyone be able to take the RIAA seriously again? US based Joe music lover will have a great addition to his defense: “your honor, please see how the RIAA is trying to extort this website…”

  58. Roman

    The reason AllOfMP3 is totaly legal in Russia is the fact that it does pay royalties to the ROMS, and ROMS in turn is responsible to provide that money to the appropriate parties. Thats how you can get tonns and tonns of other digital data (music, movies, apps) on disks and such for $2 or $4 a CD and have a license sticker on it. Yes, when you buy a CD in Russia you get a nice shiny sticker on with a licence mark on it. So to all those posts that say that AOMP3 is stealing music and selling as their own you’r dead wrong. Do some research. This law suit is caused by two possible reasons that I can observe. 1 - ROMS has not distributed anything to the parties it was supposed to (not likely). 2 - RIAA believes its entiteled to more money then they are getting (obviously they are used to share of $15 per album, not what AOMP3 is charging) and is trying to force AOMP3 to raise their prices (which by obvious reasons they aren’t willing to do). I’m sure this lawsuit didn’t come out of nowhere, i’m sure that there we some sorts of negotiations first and when RIAA wasn’t happy with the outcome they slapped this bogus case. Nonetheless, I personally don’t see how AllOfMP3 will be going down anytime soon and I’m more then certain that there won’t by much Russian government will be able to shot them down unless they change their laws to “suit” US (like thats going to happen any time soon)

  59. Big Brother 999

    The lawsuit is only the beginning and one of the essential steps that must be taken for Big Brother to get at what’s important……the transaction information. Here is how I see it (this in regards only to US residents as they rest of the planet is immune……for now…..). I welcome some correction on this if refinement is in order. Basically the RIAA needs to establish a successful lawsuit against aomp3.com in order to get the default judgement. Lets face it, do you really believe anyone from Russia is going to appear in an US court to answer the charges, of course not. With judgement in hand they can now proceed to step two, that being the attempt to gain access to the cc transactions made to aomp3.com via the clearinghouse (I believe this company is located in a country that will comply with this request, not sure though so please clear this up). After gaining the transaction data they will be able to file individual lawsuits against tax paying citizens of the US. Nothing like biting the hand that is feeding you!!!! While that is occuring a movement will be afoot to block services coming into the US at the core router level as there are not so many a small agency could not easily police them all, ala Denmark. Of course they do not need permission from the people or Congress as this is allowed via the “well intentioned” Patriot Act. It’s simply a matter of time before people with US IP addresses lose the ability to access many of these services as Big Brother will simply step in……..

  60. Robert Dupuy

    Yes, there is a lot of confusion about the laws in other countries…Americans are not stealing when they order products from Russia.

    And, yes, societies, all of them, decide how to handle intellectual properties, and societies, all of them, balance concerns of the content creator and society in general. For example, when you write a book in the United STates, eventually it will be come public domain. It will be a long time after you are dead, but one day, it will be free, for anyone to copy. Because its nonsensical to keep copyrights forever without expiration…it doesn’t provide a benefit to society to lose every work, once it drops out of commericial viability.

    By the same token Russia has a licensing agency, and American companies largely choose not to participate. They could, but they don’t. So then you have AllofMP3, selling music, paying Royalties, and American companies not even applying for Royalties…because they object to the laws of a sovereign nation.

    Than can object, to those laws, to any countries laws…but there isn’t any surprises here, about the consequences.

    I do hope this gets resolved someday. But stop accusing americans of stealing for buying legal products in Russia, and importing their purchases back to the United States… this happens all the time, everyday, and isn’t criminal, and its absurd to think so.

    The lawsuit isn’t criminal anyway, its tort, so grow up.