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AllofMP3 loses Visa service, remains defiant

Written by Ben Reid @ 18 Oct 2006 16:12 User comments (22)

AllofMP3 loses Visa service, remains defiant Controversial digital music download site was dealt another blow today as credit card company Visa International severed ties with the site in compliance with recent Russian legislation and international copyright law.
"It's no longer permitted to accept Visa cards," said Simon Barker, a Visa International spokesman. "The action we've taken is in line with legislation passed in Russia and international copyright law."

Low prices and ease of use have made AllofMP3 a winner with music fans, but the site has been on the wrong end of a lot of negative press from music industry representatives, many of whom claim the site is illegitimate as it doesn't pay sufficient royalties to artists. The MediaServices-owned site, however, has always maintained that it operates legally under Russian copyright law, and also claims that attempts to compensate the recording industry have been turned down.

"In six years of operation we have never been convicted by a Russian court or declared illegal," said defiant MediaServices' Director General Vadim Mamotin. "Under Russian law, we are 100 percent legal."

The site, which boasts five million subscribers and a growth rate of 5,000 a day, pays the Russian Multimedia and Internet Society (ROMS) a 15 percent cut of its sales, it claims. But various representatives of the music industry have issued a statement calling for closure of the site, whilst maintaining that both ROMS and AllofMP3 operate illegally.

"Under the copyright laws of virtually every country in the world, including Russia, it is illegal to distribute recordings without the permission of the rights owners," read the statement, backed the International Federation of the Phonographic Industry (IFPI), the International Confederation of Societies of Authors and Composers (CISAC) and of course, the Recording Industry Association of America (RIAA). "ROMS has no mandate from international rights holders to license the site in or outside of Russia."

International Herald Tribune

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22 user comments

118.10.2006 17:07

When will they let it go

218.10.2006 17:15

u can obviously tell how far big business will go to stop u....even a credit card company that makes money off the site wont work with them lol come on now.......tells u how far these corprate @sshole will go and who they are connected to...i hope AllofMp3's gets bigger and really puts a dent in the riaa's pockets....before i use to say i can understand the RIAA going after ppl for stealing music but its really gotten out of hand to where i'm glad they are gettin screwed now.....i hope the RIAA gets so deep in their own shiet that the artist's actually leave the labels that are making them look bad........

318.10.2006 17:36

Well on this we could fight back by not using our Visa Cards and when statement is due we could send them our concerns on their support of RIAA.

418.10.2006 17:43

they stopped accepting visa cards about two weeks ago with no explanation so this is old news although i appreciate it was reported today. you can still use mastercard though. as for protesting and not using visa cards, i imagine they have already calculated what effect it will have as a percentage of their overall sales, that is to say, absolutely none so they won't give a damn what you think or do.

518.10.2006 18:50

Fck the media mafiaa rules all 0-o

618.10.2006 20:21

looks like every company has it's price...

718.10.2006 20:32

If you ask me, allofmp3 is a bunch of crap. They're just doing what millions of people around the world do, that is, illegally distributing music, except they're making a profit on it. So I say good ridance to allofmp3. Anyways, it will just make the music industry lose more money by driving users back to the completely free p2p networks :)

818.10.2006 21:23

gtnheimer ah but unlike all the small frys ALL OF is showing one can make a nice profit off it and thats what the industry itself has been complaining that they can not lower prices because they will not make a profit,bascily ALL OF is showing every one otherwise and the media mafiaa is having sht fits over it..

918.10.2006 23:36

Time to get some quick downloads in before the ship sinks... :(

1019.10.2006 2:18

you cant really feel sorry for a billion dollar industry not being able to fund their billion dollar CEO's who listen to music all day and call it a job while planning ski trips to aspen. these people are millionaires and worshiped all over the world. is that not enough they have to go and crash our party ;p i gotto admit illegal is not good, but come on isnt there more inportant things going on in the world to worry about.

1119.10.2006 5:46

well its changed even the way they do busness now on their site they warn you to check the laws in your country ... this only means that if your from the usa they will soonbe knocking on your door.. the USA needs to worry more about their social policys and how the world see them, with implying restrictions on other countries the US will alienate them selves soon enough and then where will they be. its a sad day when issues over video games and music become a bottle neck to congress and the senate over demestic spending and not to mention bushes privet war on countries who dont have any WMD's when a guy with a bad hair cut has a nuke.... the recoring industry knows that after the election they have to start lobbing all over for favors because new constituits will be run the show because believe it or not americans are tired of the "B.S." (and that dosnt stand for Bush Senoir)

1219.10.2006 7:35

As you can now see, it is all about the $$$. If you don't grease everyone's pockets up top, you can forget about trying to make any money. The big dogs up at the RIAA will not stand for another trying to get a piece of the pie, these ba$tards want it all! Well I say this, anyone that buys an album for $15-18 or a dvd for the same price just to pay for lavish trips & such that these guys take is crazy in my book. They will never get another penny my $!

1319.10.2006 13:05

Think someone told me about a huge website ban in China (google?) where noone can access the page(s) at all, maybe thats whats next for websites like this huge blocking systems stopping the US and other country's using such sites until they are taken down.

1419.10.2006 16:58

Andrew691 Acaulty....set down for was Wikipeda...the Chinase gov hates its people to be smart they hates it so... the Chinase gov blocks alot of thins because they are a advanced dictatorship.....

1519.10.2006 20:24

AGAIN I must state that this site IS LEGAL under current Russian Law! You folks screaming about piracy need to get out of your lazy z boys anbd travel the world sometime! You will find that there are MANY countries besides the UK and the US. And SUPRISE... these countries have their OWN set of rules that they play by! case in point: In most countries, the collecting societies that receive royalty payments for the sale or use of artistic works need reciprocal agreements with overseas copyright holders, according to agencies that represent rights holders. Operating through what music industry lobbyists say is a loophole (my note: they often take advantage of their own beneficial loopholes!) in Russia's copyright law (my note: Russia treats digital copies differently than physical copies). AllofMP3 asserts its legality by citing a license issued by a royalty-collecting society (my note: royalty collecting societies are based upon Russian law!), the Russian Multimedia and Internet Society, known as ROMS for its Russian initials. In most countries, the collecting societies that receive royalty payments for the sale or use of artistic works need reciprocal agreements with overseas copyright holders, according to agencies that represent rights holders. According to Russia's 1993 copyright law, however, (my note: here it is...) collecting societies are permitted to act on behalf of rights holders who have not authorized them to do so. The result is that numerous organizations in Russia receive royalties for the use of foreign artistic works. Now if the societies are not passing on the royalties then they are the ones who are not 'legal' but the sites, restaurants, musicians, tv shows etc etc who are paying them the royalties.....Drumroll Please.... ARE LEGAL and ARE doing what they are suppose to! If you guys who are complaining about this site have a problem with outsourcing your purchases to other markets where you can get the best deal then stick with buying things where you live. Nevermind that countless jobs (and probably a job from someone you know!) has been outsourced to a competing market so that these Big Businesses can make THEIR dollars stretch further! But do not be so ethnocentric (and worse yet.. demanding that the world conform to YOUR countries laws!) and deem this site or any other vendor as a criminal simply because they are operating under the laws in the countries which they reside in! And BTW.... IT IS ALSO LEGAL under US copyright law to import a copyrighted product that was legally purchased from a foreign country, regardless of whether that product would violate copyright here, as long as it is for personal and private use! And since sepiste yours, the US Govt's, the RIAA's (surprise surpise!) and apparently Visa's claim otherwise... THIS SITE IS LEGAL UNDER THE CURRENT COPYRIGHT LAWS OF RUSSIA!

1619.10.2006 20:25

Oops... I forgot to give props to the site I snipped the quotes from above... and finally... Visa's new slogan.... VISA... ALMOST everywhere you want to be. LOL

1719.10.2006 20:26

lol ok one more... For everything there's Mastercard! pmsl

1819.10.2006 22:59

duckNrun Visa almost everywhere you want to be Mastercard for everything else in life ? :P All Of is still stealing from the artists its more or less the same as the mafiaa unlike the mafiaa its not constantly riping everyone off plus its MP3s are ok at best you can find better lossless rips on BT or limewire so its not even the best quality,I don't use it I don't need to half the stuff I want is 5+ years old,what I am getting at tho is that ALL OF is showing the great evil is that there are other ways to profit off music than to monopolize it.

1920.10.2006 1:37

allofmp3 make money, of course they do. so do the large record companies which have been ripping us off for years. the point being made is that a large money/credit organisation has taken steps to stop visa owners using there card as they see fit. i for one will write to visa and ask why i cannot use my visa card to purchase what i want??

2020.10.2006 1:47

chasb441 I don't recall these kind of tactics used before,but then has there ever been such a monopoly that has as much power are the RIAA...

2120.10.2006 21:09

omg, now I'm scared. This is like the mark of the beast of the business world here. The ability to accept VISA is EVERYTHING to most businesses. So, now if somebody doesn't like what you're doing, they'll just slice your throat off by not allowing you to accept VISA cards. It's a death sentence. I can't believe this is happening. It's not even against the law in their country. Can a Russian use VISA? NO!

2222.10.2006 8:29

I would never have even been aware of that site if it hadn't been for "the efforts of RIAA" etc.

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