The RIAA which represents the music companies of the United States is suing the Russian company AllofMP3. What it wants seems a tad excessive, as in $150,000 for each of the 11 million songs AllofMP3 allegedly pirated. So that comes to $1.65 trillion which is more than somewhat. And, indeed, is more than the annual budget of some fair sized countries.

The RIAA 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.’

That seems a fair assessment. As is ‘Defendant’s entire business . . . amounts to nothing more than a massive infringement of plaintiffs’ exclusive rights under the Copyright Act and New York law.’

Small snag there. AllofMP3 does not operate in New York. It operates in Russia.

An unnamed senior company official said, ‘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.’

That is a bit iffy. Technically AllOfMP3 does obey the 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. Sadly, the RIAA does not recognize ROM as being a legitimate organization for if it was to do so then Russia would be full of MP3 sites.

AllofMP3 on its site states: ‘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 meantime, AllofMP3.com plans to continue to operate legally and comply with all Russian laws.

What will happen in the end? The RIAA will not get $1.65 trillion and AllofMP3 site will be shut down because apparently that is what the Russian government would like. But until it happens it will be a pretty battle.

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Entry was posted on Wednesday, January 3rd, 2007 at 10:49 am under Legal.

Read more entries by Gareth Powell.
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