AllofMP3.com under attack
p2p news / p2pnet: Using their IFPI as the hammer and the media as the anvil, the Big Four members of the Organized Music cartel are ramping up their efforts to eliminate AllofMP3.com, the Russian download service which represents one of the strongest elements of competition facing them.
Charging around 60 to 85 cents wholesale for lossy digital files from meagre catalogues, the Big Four are trying to establish themselves as the virtual sole suppliers of music online with the likes of iTunes as their points of distribution.
Consequently, the tiny handful of online corporate sites which have any kind of presence are forced to charge upwards of $1 for each download to merely break even.
Music lovers are staying away from them in droves. Warner Music, Sony BMG, Vivendi Universal and EMI are nonetheless disingenuously claiming there’s a booming online music market.
Now, "AllofMP3.com, a Moscow-based service that undercuts iTunes by enormous margins, was accused today of paying nothing to artists," says Out-Law.com.
"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 (almost $18.20); or typically about £0.75 (about $1.40) from AllofMP3, which prices its downloads by file size."
No wonder music fans are avoiding Big Four ‘product’ like the plague.
On AllofMP3.com, however, "the choice is enormous," says the story. "All those Beatles albums that Apple is not allowed to sell can be found at AllofMP3.com for under a pound."
How is it able to offer its wares at such reasonable prices?
"The availability over the Internet of the ALLOFMP3.com materials is authorized by the license # LS-3М-05-03 of the Russian Multimedia and Internet Society (ROMS) and license # 006/3M-05 of the Rightholders Federation for Collective Copyright Management of Works Used Interactively (FAIR)," it says. "In accordance to the licenses’ terms MediaServices pays license fees for all materials downloaded from the site subject to the Law of the Russian Federation "On Copyright and Related Rights". All these materials are solely for personal use. Any further distribution, resale or broadcasting are prohibited.
"The works available from ALLOFMP3.com are protected by the Law of the Russian Federation "On Copyright and Related Rights" and are for personal use of a buyer. Commercial use of such material is prohibited. Recording, copying, distribution on any media is possible only upon special consent of a Rightholder.
"The user bears sole responsibility for any use and distribution of all materials received from AllOFMP3.com. This responsibility is dependent on the national legislation in each user’s country of residence. The Administration of AllOFMP3.com does not possess information on the laws of each particular country and is not responsible for the actions of foreign users."
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," says the story. "That puts it ahead of Napster (8%), Wippit (6%) and MSN (6%) in digital music sales."
In all probability, AllofMP3.com is actually way ahead of iTunes which, although it’s dressed up as a music download service, is in reality a kind of loss leader for iPod.
XTN apparently draws its conclusions from Alexa.com stats which, while they’re popular with companies trying to get a handle on what’s happening online, can by no means said to be representative.
Meanwhile, "AllofMP3.com is not a legal service either in Russia or anywhere else," Out-Law.com has Lauri Rechardt, head of litigation at IFPI, declaring.
"There are two separate criminal proceedings ongoing in Russia," the story adds."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."
And while the Big Four accuse indie sites and file sharers of all kinds of non-existent crimes, they are themselves being investigated in the US at both state and federal levels.
Also See:
Out-Law.com – AllofMP3 is illegal, says music industry, May 26, 2006
Alexa.com stats – AllofMP3.com thrashes Napster, May 13, 2006
May 27th, 2006 at 4:28 pm
“they are themselves being investigated in the US at both state and federal levels.”
And yet, the Bush Administration’s Attorney General is going cross country with entertainment executives scaring school kids:
http://www.p2pnet.net/story/8388
May 27th, 2006 at 4:55 pm
“AllofMP3.com, a Moscow-based service that undercuts iTunes by enormous margins, was accused today of paying nothing to artists,”
This has got to be the funniest line in the whole article.
Rick
May 27th, 2006 at 9:36 pm
*sighs*
May 27th, 2006 at 10:23 pm
“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”
That’s entirely true, but the question is does ROMS or Allofmp3 need authorisation from record companies. Rembember the loophole?
Russian copyright legislation allows phonograms to be performed publicly without the authorization of the copyright owner for broadcasting and cable transmission. (Article 39) The Internet could be deemed to fall under this exemption.
Criminal proceedings in Russia are slow, so we have to wait and see.
May 28th, 2006 at 7:47 am
Yeah, sort of reminded me of those Ronco commercials on TV…”Send no money now!!”
May 28th, 2006 at 3:17 pm
-= Disclaimer:This is just my opinion. =-
- As such I’m NOT suggesting any comment following –
- this preface is true. In fact I live in a fairy-tale –
- and nothing I say should be taken seriously. –
[ Sarcasm ]
The labels themselves don’t want to pay them, it makes
PERFECT sense that they sue someone else to do it
They care for the artist most of all, and they need to be paid,
( by someone else, of course ). Consumers just don’t understand.
[ /Sarcasm ]
May 29th, 2006 at 5:08 pm
So AllOfMp3 pays ROMS (probably). Does ROMS pay anyone?
And what are we to make of the various lawyers analysis that downloading from AllOfMp3 *is* legal in western countries?
May 29th, 2006 at 5:18 pm
-= Disclaimer:This is just my opinion. =-
- As such I’m NOT suggesting any comment following –
- this preface is true. In fact I live in a fairy-tale –
- and nothing I say should be taken seriously. –
I honestly don’t know, Julian
But, then again ….
How many times have the “cares about artists” RIAA been caught
red-handed, and/or sued for not paying royalties ?
Does any one know for certain how the Majors disburse and distribute payment ?
It’s not really easy for anyone BUT the DOJ to figure it out.
I am NOT addressing the right or wrong aspect of AllOfMp3.
just the Hypocrisy of the labels.
Dreddsnik
May 29th, 2006 at 7:04 pm
This could be due tot the fact that artists have to claim their royalties by addressing ROMS. Probably artists refuse to contact ROMS or are advised to refrain from addressing ROMS because this could be deemed as an acknowledgment of ROMS’ power of attorne
June 1st, 2006 at 3:36 am
1. AllofMP3.com is paying BOTH ROMS and FAIR.
2. The importation of goods not licensed for use in the United States has been happening for years – those CD’s, tapes, and vinyl marked ‘IMPORT’ at your local stores are not licensed for distribution in the US and are in violation of law. Not copyright law though!
I’m taking a wait and see attitude… even if they ‘happen’ to close down allofmp3.com there are other services within the .ru domain that offer downloads at similar rates that will have to be taken down one by one unless they actually change the law within Russia.
Note: I am not a lawyer in any country but I have done plenty of research on the subject.