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August 29, 2007 2:08 PM PDT

U.S. to Russia: Allofmp3.com closes door on your WTO chances

by Greg Sandoval

Should Allofmp3.com reappear, as the controversial online music store has promised, it likely will doom its country's chances of joining the World Trade Organization this year.

"We remain committed to helping Russia make it into the WTO," said Sean Spicer, a spokesman for the U.S. Trade Representative, the group that negotiates International trade agreements on behalf of the nation. "In order to make that happen though, they have to honor the commitments that they've made especially in the area of intellectual property rights."

If that wasn't clear enough, Spicer was more direct here: "I don't see Russia entering the WTO with sites like Allofmp3.com up and running."

Russia has tried to comply. At least they made an attempt two months ago to shut down Allofmp3.com and try the company's owner, Denis Kvasov, for violating copyright and intellectual property laws. The problem for Russian trade officials is that Kvasov apparently operated a law-abiding site. The Cheryomushki Court in Moscow acquitted Kvasov.

A message posted at Allofmp3.com notified customers that the site will return but doesn't say when. For some undisclosed reason, the date of the message is Aug. 31.

The recording industry claims that Allofmp3.com is a renegade retailer. The company distributes digital downloads without the permission of copyright holders. Allofmp3.com has claimed that it sends royalties to a Russia-based artist's group, but the Recording Industry Assoc. of America doesn't recognize it.

For a long time, U.S. trade officials have tried to pressure Russian authorities to close the site but Allofmp3.com continues to defy the music industry and government regulators from both countries.

Meanwhile, Russia's hopes of entering the WTO by the end of the year are evaporating. Think of the WTO as an exclusive club, one that Russia desperately wants to join.

The WTO is made up of 150 countries that have agreed on rules and regulations regarding trade. This makes selling goods or services overseas easier for companies from member countries, Spicer said.

But the RIAA claims that pirates outside of the U.S. are stealing billions of dollars. Before the U.S. will support Russia's WTO membership, it wants the government to clean up piracy and improve its standing with the entertainment industry.

So Allofmp3.com's fight will likely continue. How long the site can last is anybody's guess. One thing is certain, all the notoriety from the shut down, subsequent trial and reappearance is free publicity for Allofmp3.com.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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So, is U.S. afraid that Russia will pull an Antigua?
by okvol August 29, 2007 3:03 PM PDT
Antigua has recently taken it's dispute with the U.S. to the WTO over Internet gambling. The WTO found the U.S. in the wrong, and Antigua is asking for free trade as punishment, the right to ignore U.S. copyrights. The U.S. knows that the RIAA's case is weak at best, and does not want to take it to the WTO.
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That's rich, considering the US basically ignores the WTO...
by M C August 29, 2007 3:03 PM PDT
...whenever it suits them.
Reply to this comment
How do we hurt our chances to be in WTO?
by Solaris_User August 29, 2007 3:50 PM PDT
Good for Russia. Now if we could just get out of the WTO..

Managed trade is not free trade. WE dont need a world body controlling who we can buy and sell from.
Reply to this comment
Ditto
by nicmart August 29, 2007 6:31 PM PDT
The US government shouldn't be the police agent for American
corporations. Let the corporations solve their own problems.

To echo the post for emphasis: managed trade is not free trade.
Not through the WTO, NAFTA, or any other agency or agreement.
People opposed to managed trade and state corporatism are
supporting Ron Paul for president.
issue for USA
by rdupuy11 August 29, 2007 7:35 PM PDT
The issue for the USA, is if Russia is not in the WTO, then Russia is not bound by the WTO.

USA wants Russia in the WTO more than Russia does...its the usual craptcacular bs from the last propogandists in the world...us government.
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