The US threatens to stop Russia from gaining entry into the WTO if they do not close down AllofMP3

On May 17 Pandia published a thorugh review of the Russian AllofMP3 online music store. Now the US has declared war against the site.

AllofMP3 is selling songs from a large number of international artists for a ridiculously low price and in all kinds of file formats — unprotected all of them.

We asked the right question:

“Hm. We wondered… Isn’t this too good to be true? How on earth can AllofMP3 present the latest albums by Shakira, the Pet Shop Boys or Coldplay in this manner, when the record companies hate these kind of services?

The record companies managed to close down the first edition of Napster and fought Steve Jobs and Apple all the way. Why on earth should they tolerate an iTunes killer of this sort?”

The New York Times now reports that the conflict between the international record companies and AllofMP3 has become part of the negotiations for Russia’s possible membership in the World Trade Organisation!

In February, several US copyright holders argued for economic sanctions against Russia for AllofMP3′ s”piracy”. Last week they talked Russian police into taking a closer look at the site.

For a discussion on AllofMP3’s legality, you can read our AllofMP3 review.

Here we are going to give the floor to AllofMP3, who has sent us the following statement:

The AllofMP3 Statement

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.

See also: Ovum: AllOfMP3.com - innovative but probably illegitimate
The St.Petersburg Times: Web Site Sets Music Industry on Edge