Posted on 06/26/2005 5:37:30 PM PDT by BobbyBeeper
Moscow prosecutors have declined to press criminal charges against a popular Internet site that sells MP3s for just pennies, according to Russian news reports.
Record industry groups in the United States and Europe are trying to close the Russian AllofMP3.com, which offers downloads of MP3s--including songs from The Beatles and other groups that have not authorized digital distribution--for just a few cents per song.
Late last month, Moscow police completed an investigation of the issue and recommended to prosecutors that the site be charged with copyright violations. The International Federation of the Phonographic Industry (IFPI) also submitted a formal complaint about the site.
On Friday, Russian news agency Tass reported that prosecutors had declined to press criminal charges, citing specifics of Russian copyright law.
A spokeswoman for IFPI said Monday that the organization had not heard an official response from the Moscow prosecutors.
"We have received no confirmation of any decision, and we do not expect it for some time," said IFPI spokeswoman Fiona Harley. "However, if it is true that the prosecutor has not taken the case this would be very disappointing, considering the blatant and large-scale infringement that continues to take place."
The tussle over AllofMP3.com highlights the difficulties that copyright companies are having around the world, faced with myriad versions of laws that are often imperfectly adapted to new Internet distribution models.
The Russian site says it has legal rights to sell the music in the form of licenses from the Russian Multimedia and Internet Society. Record labels say that group does not have the authority to grant distribution rights to their music.
Similar issues have arisen in Spain, where a pair of Net companies began distributing music online citing the approval of local license authorities. Record labels sued both, but only one--Weblisten.com--remains in operation.
The IFPI spokeswoman said the group would pursue the case further if the Moscow prosecutor takes no action.
bump
Maybe I'm the only one that finds this interesting. This site has developed a download model that actually works. Cheap enough that people will give up free trading, yet still takes in enough money to be profitable.
If the record companies would get it through their heads that you don't have to charge an arm and a leg to be profitable, they would be.
The days when record companies spent a million dollars to record an album ended with the 1970's. Today, most albums are recorded on the cheap (don't believe it, listen to the sound quality of a CD version of a big name '70's artist like McCartney vs. one today, the difference is staggering.) The investment in recording a CD no longer justifies the higher price (especally when the cost of reproduction via online is virtually nil.)
What the big companies are doing is opening the door to mid-sized and independent labels to start their own "allofmp3" type site that will eventually eat their lunch.
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