AllofMP3.com hit with music piracy lawsuit
Business and Law Features

AllofMP3.com hit with music piracy lawsuit

Chicago (IL) - The next round of legal proceedings against alleged music mass piracy has begun. AllofMP3.com has become the latest example, with looming lawsuits from Arista Records, Warner Bros, Capitol Records, and more, aiming to take down the site.

AllofMP3.com, owned by Moscow, Russia-based Mediaservices, allows users to purchase music for just cents per track, offering a price advantage over the $1 price on iTunes and others. According to the case filed, the site does not distribute any of the proceeds to the artists or recording labels.

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

Mediaservices at this time claims that it pays a Russian licensing group (Russian Organization for Multimedia and Digital Systems), therefore being in compliance with Russian laws. However, like many legal cases involving the Internet, the issue falls under international private law and international jurisdiction.

Earlier this year, Visa and Mastercard prevented sales to all of Mediaservices' sites because of the legal issues surrounding them. A related suit has been filed in Europe as well on behalf of major UK recording companies.