June 7, 2006 9:55 AM PDT

U.K. music industry to sue AllofMP3.com

The U.K. music-industry trade organization, the BPI, is to sue popular Russian download site AllofMP3.com, claiming it is not sharing any of its profits with the artists whose music it sells.

AllofMP3.com sells singles and albums for download in a fashion similar to rival iTunes, but AllofMP3's offerings typically are much less expensive--1 pound (about $1.87) per album versus iTunes' typical price of 7.99 pounds ($14.85).

The site says it complies with Russian laws and does make royalty payments to the country's rights-holders organization. Not so, says the BPI, which maintains that all of the site's claims to legal operation are false and that no artists have received royalties from the site to date.

As a result, the BPI is now intending to take AllofMP3.com through the U.K. courts.

A representative for the BPI said the organization's lawyers won't be going after any U.K. users of the site: "While it remains illegal to use the site, we aren't interested in taking users to task--what we are doing is targeting the site itself."

According to recent research by XTN, AllofMP3.com is the second-most-used download site in the U.K., behind Apple Computer's iTunes.

Jo Best of Silicon.com reported from London.

See more CNET content tagged:
AllofMP3.com, U.K., organization, Apple iTunes, Apple Computer


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OK, how does the jurisdiction issue work out?
Let me get this straight - the UK-based BPI wants to sue Russian-based AllofMP3.com...how are they going to manage that? Will they claim some sort of "international jurisdiction" because the site has sold to UK users (it's UK #2 in terms of download sales apparently - only behind iTunes)?

You strongly suspect that the reason for the legal action is because AllofMP3.com is showing up how much outrageous profit other download sites are making (or, to be more accurate, how much the *record companies* are profiteering from downloads) and this is causing UK users to flock to AllofMP3.com, which also - not uncoincidentally - offers *no DRM* on downloads...surely another major factor in the site being ultra-popular?

Why don't the other download sites either remove DRM, drop prices or both? Answer: they're greedy and stupid...and annoyed that AllofMP3.com is showing them up to be just that...
Posted by rklrkl (143 comments )
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iTunes sucks.
Hear Hear dude, you're absolutely correct! Itunes needs to get with it and lower prices and remove DRM. I've got thousands of no DRM songs that I don't share with people so there's really no harm. I was sharing, but it becomes a pain in the ass to do so, so recently they go nowhere. Itunes is a rip-off. Its the same price of a CD in the store! AND on top of that, you have limited usage of the ******* songs! I can go buy the CD rip it and have no DRM. You suck iTunes.
Posted by garek007 (3 comments )
Link Flag
As a published Artiste...
We have released several recordings in earlier years, we have yet
to see Royalty Statements, let alone any royalty payments, from
one of the "big lables".
I see this as an outrage... "The Industry" claims the Artist is
losing money... that's a joke, the record (cd?) industry is crooked
beyond belief, they DON'T PAY ROYALTIES till you sue them! and
what small band can afford to do that?
We are living in the New Dark Age, only this time the persecutors
are "big industry" and "the government"!
Posted by indigoking (1 comment )
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