Ben Reid
6 Jun 2006 12:21
Last month, the International Federation of the Phonographic Industry (IFPI) hit out at popular Russian music download service AllOfMP3.com, claiming it fails to pay artist royalties, and is therefore an illegal service.
In a press release on 2nd June, entitled 'Setting The Record Straight', the IFPI made claims that, "Allofmp3.com is not a legal service either in Russia or anywhere else. It is distributing music without any permission from the artists or copyright holders. Unlike all the legitimate sites, it does not pay artists or copyright holders so it is effectively stealing from those who create music. Like most things that appear to be too good to be true, allofmp3.com is not what it seems."
Up until now, AllofMP3 remained silent on the issue, refusing to answer any inquiries from virtually every media source. Now, however, AllofMp3.com has decided to set the record straight from its own point of view.
Point number five is particularly intriguing, as it implies that AllofMP3 may be negotiating a settlement on changing its popular cheap price structure:
THE ALLOFMP3.COM 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.
The AllofMP3.com Administration
June 6, 2006 Moscow