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Old 01-02-2007, 04:44 PM   #1
Napoleon54
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RIAA throws another temper tantrum

This is just ridiculous. They'd better not shut down my favorite source for legal music. I love AllofMP3's response, basically: "suck it".

Quote:
RIAA sues AllofMP3 for $1.65 trillion

The RIAA is seeking $150,000 for each of the 11 million songs AllofMP3 allegedly pirated.


It was first reported by the Washington Post last week that the RIAA was suing the Russian online music distribution company Mediaservices, which owns AllofMP3.com and allTunes.com, for illegally selling copyrighted music.

The companies behind the claim, which include the major record labels Arista Records LLC, Warner Bros. Records Inc., Capitol Records Inc. and UMG Recordings Inc., filed the suit in a New York federal court claiming that "...Mediaservices' sites sell millions of songs by their artists without paying them 'a dime' for the right to do so."

"Defendant's entire business ... amounts to nothing more than a massive infringement of plaintiffs' exclusive rights under the Copyright Act and New York law," according to the lawsuit.

As part of their claim, the labels are seeking $150,000 USD for each of the 11 million songs that were downloaded from June to October 2006 from the AllofMP3.com website.

Now how much money the site has made is unknown but, certainly its profits are not in the trillions of dollars.

"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."

What he has to say is true, for isn't AllofMP3 currently complying with Russian copyright laws?

As I previously reported, technically AllOfMP3 does obey the law-Russian law. It pays the standard 15% Russian licensing fee that applies to online music to ROM, the Russian Organization for Multimedia & digital systems. ROM is the Russian equivalent of the RIAA, and according to their website they are "...the national Russian organization providing professional collective management of authors’ property rights and protection of interests of rights holders in cases of use of their works in digital interactive networks, including the Internet." But, unfortunately for AllOfMP3 the RIAA doesn't recognize ROM's legitimacy, perhaps out of fear that it would help legitimize AllOfMP3 and erode their position against it.

Furthermore, considering that they already have online distribution deals with other companies like Microsoft and Apple for instance, it stands to reason that it is not that copyright infringement is the concern but, rather the amount in royalty payments that the Russian sites are required to pay.

After related recent events in which the RIAA was demanding a cut of the profits from every one of Microsoft's Zune players sold, as well as talk that it would seek a similar arrangement in future deals with Apple's iTunes, it's no wonder that the RIAA wants to make sure it gets as much money as it can, consumers and the laws of sovereign countries be dammed.

*UPDATE: From the AllOfMP3 site

An attempt by the major record labels to use a U.S. court to as part of its campaign against AllofMP3.com is imprudent.

AllofMP3 understands that several US record label companies filed a lawsuit against Mediaservices in New York. This suit is unjustified as AllofMP3.com does not operate in New York. Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3.com operates legally in Russia.

In the mean time, AllofMP3.com plans to continue to operate legally and comply with all Russian laws.

http://www.zeropaid.com/news/8175/RIAA+sues+AllofMP3+for+$1.65+trillion
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Old 01-02-2007, 05:21 PM   #2
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Quote:
Originally Posted by Napoleon54
They'd better not shut down my favorite source for legal music.

I understand it's legal for them to operate in Russia, but is it legal for US customers to buy music from allofmp3?

$150,000 per song. Some of the RIAA lawyers must have gotten into Snoop's stash. Also, I think I heard on the radio last week that $1.65 Trillian is more than Russia's GDP. Now that's funny.
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Old 01-02-2007, 05:39 PM   #3
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Originally Posted by MrGreg
I understand it's legal for them to operate in Russia, but is it legal for US customers to buy music from allofmp3?

No.

It's the same reason why there's different versions of iTunes around the world (ie: people in Europe can't buy from the US iTunes). Different countries have different copyright laws. Because of this, there are different licenses that are granted by the record labels to sites like iTunes depending on the region they are serving.
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Old 01-02-2007, 07:29 PM   #4
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For those who are using allofmp3.com. How do you pay for your music and is it secure/safe?
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Old 01-02-2007, 09:21 PM   #5
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Quote:
Originally Posted by ArkiStan
For those who are using allofmp3.com. How do you pay for your music and is it secure/safe?

I've been using them for about 6 months now and have been EXTREMELY happy. You set up an account and pay ahead of time, I think the minimum is $10. Anything you buy is deducted from your account. Instead of charging a set amount per song they charge per MB that you download. They offer music in several formats and levels of quality. I typically order in 320kbps MP3 format and get full albums for $3-$4. I have had a couple support questions for them and they've always responded and resolved the situation within a day or two.

Below I'm paraphrasing the info found on their site. I've throughly read the user agreement and this is my understanding of it:

The simple way to explain it is that what you're doing is buying music in Russia and importing it to the US by downloading it. It's the same as if you were actually in Russia, purchased a CD, and brought it back with you on the plane.

The more complex way of explaining it is to consider that part of the service they offer, and you pay for is, after the music is encoded at your request, to rent you the space on their server where it is stored. Since this space is legally yours, it is entirely legal for you to transfer music files from your server space in Russia to your personal computer in the US. As a file is downloaded it is simultaneously deleted from the server in Russia, and thus only one copy of the encoded file ever exists. This apparently has some legal significance.
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Old 01-02-2007, 09:29 PM   #6
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IMO what it boils down to is that RIAA objects to the very favorable exchange rate between US $ and Russian rubles.
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Old 01-03-2007, 06:20 AM   #7
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Quote:
Originally Posted by Napoleon54
snip



Very satisfied with these guys as well. They have a desktop client, AllTunes, which is very similar to ITunes and is a suprisingly good app.

Their library is not as complete as ITunes, but it's not shabby at all. You should find nearly everything you're looking for.

Two notes: they recently stopped taking VISA and M/C payments, only AmEx and Diner's Club. See their site for ways around it. Also, they currently have a 20% bonus sale. Pay $50, get $60 credit towards their store.
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Old 01-03-2007, 06:34 AM   #8
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Quote:
Originally Posted by Napoleon54
IMO what it boils down to is that RIAA objects to the very favorable exchange rate between US $ and Russian rubles.

Well, not TECHNICALLY - if you went & bought a CD in Russia, you'd be paying for a copy that was purchased legitimately from licensed distributors (assuming you're not buying bootleg). The artist & the RIAA see royalties from that, and I'm pretty sure you're going to be paying more than $3-4 per CD.

In this model, they are selling black market tunes - stuff that they don't have a license from the RIAA or the artist to sell. I'd say you're on just as firm legal ground downloading the files yourself illegally as you are buying from these guys. Perhaps safer, because if the RIAA is ever successful in making these guys stop, they're going to go after all of the customer transactions & bam! the RIAA has your name & credit card info. And you KNOW you don't want them to have that!

I'm holding my breath for the day that the RIAA gets a major smackdown for the way they've been acting. Pure, unadulterated greed on their part. What they should be doing is changing the way they do business, not suing everyone in sight.
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Old 01-03-2007, 06:53 AM   #9
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what's the problem here? if they are not selling legally obtained material, why allow them to stay in business?
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Old 01-03-2007, 08:09 AM   #10
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Old 01-03-2007, 12:53 PM   #11
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Quote:
Originally Posted by Jeffbx
Well, not TECHNICALLY - if you went & bought a CD in Russia, you'd be paying for a copy that was purchased legitimately from licensed distributors (assuming you're not buying bootleg). The artist & the RIAA see royalties from that, and I'm pretty sure you're going to be paying more than $3-4 per CD.
Allofmp3 pays royalties to ROMS (Russian Multimedia and Internet Society), RIAA's Russian counterpart. Considering the exchange rate, I'd be very very suprised if CDs in Russia cost even as much as the equivalent of $3-$4. They're probably cheaper than that.
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Old 01-03-2007, 01:01 PM   #12
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Quote:
Originally Posted by MikeD
Two notes: they recently stopped taking VISA and M/C payments, only AmEx and Diner's Club. See their site for ways around it. Also, they currently have a 20% bonus sale. Pay $50, get $60 credit towards their store.

I had read that too a while ago, but I don't think it is the case any more. I used M/C a few weeks ago. Their FAQ/ help section now says:

"Are there any restrictions for credit card use?
-We do not accept American Express, Cirrus, Union Card."
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Old 01-04-2007, 09:22 PM   #13
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Does that mean Senator McCarthy will be knocking on my door each time I drink a white russian??? OMG!!!
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