The company pays fees to the Russian royalty collection society, ROMS. Therefore, it believes the responsibility to compensate copyright holders properly lies with ROMS. Despite the ridiculously large figure provided by the RIAA in the complaint, AllofMP3.com has kept up its defiant attitude.
"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."
The RIAA can be seen as a victim of its own tactics, displaying that morality has no place in litigation, targeting the young, old, rich and poor in copyright infringement lawsuits for sharing music. With this word-for-word use of the DMCA in the United States, the RIAA should understand that if on paper, AllofMP3.com complies with Russian laws, then it is effectively a legal service in Russia where it operates from.
With that being said, you cannot argue that artists and copyright holders do not deserve their cut from the sale of their work by an online service. The AllofMP3 situation will continue to be an interesting one to follow.
Source:
Ars Tecnhica