AllofMp3.com Breaks Silence

Found on Slyck on Tuesday, 06 June 2006
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AllofMp3.com has managed a extraordinary level of popularity because many feel it represents what an online music service should be. The music service contains no DRM (Digital Rights Management), allowing the consumer to copy and transfer the purchased track to whatever device he or she wishes while compensating artists.

The entertainment industry however claims the service is flat out illegal. According to the IFPI (International Federation of the Phonographic Industry), AllofMp3.com fails to pay artist royalties - contrary to AllofMp3.com's assertions.

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.

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.

Instead of whining about the site itself, the entertainment industry should talk to ROMS/FAIR who grants the licenses. But no, it seems to be easier to cry about a company who has great success while still being legal; of course it only has success because it "steals from the artists", as the industry says. On the other hand, when an artist only receives 4 cent from every 99 cent download, then I wonder if this really makes that much of a difference for him and justifies all those threats.