New Russian Law May Make Life Difficult For Allofmp3.com
from the legal-pressure dept
A year ago, Russian authorities investigated Allofmp3.com and found that the company was not violating local laws. As the site's owners have claimed from the beginning, they found a bit of a legal loophole in licensing the ability to sell music online from Russian rights' agencies. However, as Russia tries to join the WTO, the US (and its friends in the entertainment industry) have made it clear they will block Russia's attempt to join unless they shut down Allofmp3 and similar sites. Luckily Russia passed just such a law a couple years ago... though it didn't go into effect until just last week. It could present trouble for Allofmp3, as it threatens those who offer unauthorized downloads with five years in jail, basically setting the punishment terms on the equivalent level of selling stolen physical goods. Of course, it's not entirely clear how worried Allofmp3 should be. Another story on the law suggests that the Russian parliament may already want to change the law -- though, it's not clear how the new law will impact Allofmp3. In the meantime, though, the recording industry continues to focus on the wrong thing. Talking about this new law, it focuses on how Russian internet sales are way too low, because of the low prices of Allofmp3, rather than how it could learn from the site about how (a) people are willing to pay for un-protected MP3 files and (b) how they're much more willing to pay when the prices are a much more reasonable price than what the industry is used to charging (both of which counteract claims by the industry that there's no way to fight "piracy" and that DRM is necessary).
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
Hmmm
[ link to this | view in thread ]
Geez...
[ link to this | view in thread ]
...
[ link to this | view in thread ]
I'm personally tired of this "consumer as victim" mentality people take on. Is Eminem and Beyonce like "crack"? If they don't distribute and price how you like, don't support them... support those that do. Boom. Change made manifest.
Sites like AllofMp3.com break that leverage, and allow people to take no responsiblility for creating the industry they loathe so much.
Phooey. Eyes open, people.
[ link to this | view in thread ]
my dad was all paranoid about joining a russian website with CC info and what not.
[ link to this | view in thread ]
They gotta learn!
[ link to this | view in thread ]
Real Story
[ link to this | view in thread ]
TPB?
How long did it take to convince .se athorities to attempt to take down The Pirate Bay?
On a side note, have you all checked out their new video?
http://www.stealthisfilm.com/
[ link to this | view in thread ]
umm...
[ link to this | view in thread ]
addendum
Yes yes, bandwidth would be an issue, but that can be worked around.
[ link to this | view in thread ]
[ link to this | view in thread ]
Time and time again....
[ link to this | view in thread ]
Why buy at all?
[ link to this | view in thread ]
In America
[ link to this | view in thread ]
Re:
If I'm not mistaken piracy is a means of rebelling against the absurd amount of money these companies want for another person's work. So the statement "If they don't distribute and price how you like, don't support them... support those that do. Boom. Change made manifest." makes absolutely no sense. Pirating music or buying from sites like AllofMp3.com is basically saying hey we aren't going to pay you retarded sums of money for the same crap 200 other brand new bands are copying. Boom! Change made manifest.
Unfortunately we don't end up with intended change. The folks at the RIAA come by and kick the people over at AllofMp3.com square in the nuts and say look we are making people pay us the price we want.
I'm not for piracy I'm merely pointing out that you are contradicting yourself. Don't support the people want too much money, but don't try to get it cheaper from someone outside of America's retarded copyright laws either. Choose a side and stick to it.
[ link to this | view in thread ]
wTf
My challenge to all of you is to stop bickering amoungst yourselves and take positive steps to bring the corporations to the center of the American focus. When their outright robbery is exposed and not misled by some war for money the American people might just stand up for themselves rather than this apathetic coffee house drivel we all spout online about how much we want to pay. Get off the computer and start writing letters to you congressman/woman, file regional petitions for change, get the media involved before ClearChannel completes its monopoly (thanks for that Reagan you schmuck!).
Americans live in a society that stinks to high heaven, but they have the one tru advantage other nations do not. We HAVE THE RIGHT TO STAND UP AND BE HEARD! Even when the MSA and secret service infringes on it stand up to them as Martin Luther King JR. did, peacefully and with dignity. That is the only was to block the juggernaught if it's attention can't be roused. Remember, there is always another way of smothering the greatest of all evils if we band together. If we continue with the nihlism, then the RIAA, Exxon mobile, and reality television distractions will have exactly what they want (the citizens at the arena being shocked while the coffers of our grand society is pilfered).
Think. Act. Respect.
[ link to this | view in thread ]
world ruled by america ruled by capitalists
ill admit here i have used torrent for some music but i do like to know i can aquire it legally where possible however, i am not willing to pay huge prices in i tunes that means i may as well just buy the CD for the un DRMd hard copy.
The reason i like allofmp3 is because it cheap, the way downloads should be. Its cheap enbough for those thinking about torrent to pay just for the quility of the download and reliability.
It has long been argued that to stop the illigal downloading (or at least reduce it) the record industry simply needs to reduce its price to something more reasonable that more people are willing to pay, they seem to forget that we all want music but dont want to spend £100s getting it.
Thing is we can complain about this all we want, they will never learn as they have the power to influance the US administration in order to force their way worldwide. the sooner this stopes the better for all of us.
[ link to this | view in thread ]
-------------------------------
hrmm... MAYBE the recording companies could learn a lesson from both the P2P and movie rental worlds:
Offer FREE (read no strings attached) trial downloads of albums. They could do it via BitTorrent transfer (yes, it does have legitimate uses), saving them assloads of money on bandwidth costs. At the end of your "trial" period, have the files corrupt themselves, making them unusable/unplayable (I dunno, use a proprietary format the way ITMS does). Track what day who downloaded what album so that you can keep people from redownloading the same thing over and over again (effectively giving them unlimited trial time), and after about 2 months, let them download that album again.
This way the consumer doesnt have to pay 20 bucks for a crap album they end up not liking, and if it is good, well then they can go buy it. If the consumer is happy with the album and buys it, then the recording studios get their money, and everybody lives happilly-ever-after in the land of unicorns...
BUT - hey, they're the recording industry - how often do they learn???
---------------------------
Sure, it would basically be DRM on steroids, but it could work, me-thinks, eh???
[ link to this | view in thread ]
Piracy is Rebellion?
Yes, you're SERIOUSLY mistaken unfortunately. Let's dodge the fact that its effectively their stuff anyway and jump right to the heartof the matter...
By pirating music whose producers you do not want to support, you imply that they have "demand" and are simply losing it to "theives" (sound familiar?) They begin (sorry, "continue") suing people, individuals, and also, technology innovators, while most piraters hide behind an assumption of anonymity. By simply not using the power of choice and NOT implying any demand in the first place (for crap music or lame distribution), instead of giving the music industry "something to think about" a "pirate" simply provides them with more "targets" for legal scrutiny.
A perfect example of what pirates would LIKE to think would happen... is what the movie studios have had to do in Russia. LOWER PRICES in order to compete with their own products from illegal sources. This is a bullshit way to run a free market economy, and will NEVER happen in most civilized countries (with a legal system). How would you like it if you began selling something, and had to lower your price, because anyone could make a copy and undersell you (while smiling as your customers "stick it to the man")? No, I didn't think you would.
So... no... pirating is NOT "rebellion", is just being irresponsible and living in a dream world where you don't have to anwer for the fact that you're a garden variety shoplifter.
But, I realize the human mind has an unparalleled ability to rationalize whatever it is it wants.... so "pirating is rebellion"? Hm, sounds good! You get your free music and you stick it to the man! Alright! Nevermind it doesn't make logic sense in the end! Keep pretending they can't see the numbers and draw conclusions (its all secret, right)! Keep pretending your actions don't hurt better music models too. Keep pretending that bad behavior causes positive results and that two wrongs make a right.
You're not alone, and odds are you'll never cause a wit of change in the music industry. Party on with your bad self. You're a rebel without a clue.
[ link to this | view in thread ]
Re:
The difference is, in Russia (at least until recently), those royalties were set by the Russian govt., not the record companies. Of course, those royalties are far below what the record companies charge. This is why Allofmp3 has been able to sell music so cheaply.
[ link to this | view in thread ]
Re: Piracy is Rebellion?
See my other comment - Allofmp3 is not a pirate site.
[ link to this | view in thread ]
Piracy is rebellion not so cleverboy
Now why should I be mandated by the RIAA to buy only from sites they deem worthy (because of the use of DRM). Why can I not buy cheaper music from AllofMp3.com. By doing so I am telling the recording industry that yes your music does have a demand but I do not wish to pay $1 per song (15 songs per CD for $15).
Piracy is another form of rebellion albeit an illegal one. Just like when the folks up in Boston got pissed off about taxes and decided to dress like Indians, break into ships at port and steal tea to throw into the ocean. This was completely illegal but yes a form of rebellion. By saying hey we aren't going to pay you for this item is theft but also a form of rebellion.
I am not saying we should all pirate music to stick it to the man. Like I've stated several times I am not for piracy or theft of any kind. Obviously you can't read to well or you would have seen this. Your analogy of "How would you like it if you began selling something, and had to lower your price, because anyone could make a copy and undersell you" does not apply. And is in fact is what free market is. Yeah I can make really kick ass widgets. Then another company can come along and take my widget and produce it for much less and under sell me. That's called competition. Of course that doesn't apply in the case of an artist creating a song or work of art then some one coming along and running it through a copier to make exact copies and selling them for cheaper. That's effectively what pirating is.
But why can't I go to walmart for a CD at $10 instead of K-Mart for $15. That's effectively what the RIAA is doing in this case. They are trying to shut down legal businesses because they don't comply with their DRM requirements or don't sell products at the price they deem it to be worth. What the RIAA is basically enforcing is that you can buy the item if we say you can buy the item at the price we say you can buy the item. Screw you. I can go to my local bar and buy a Corona for $5 or I can take another trip down to Mexico for a $1 Corona because I don't have to pay import Tax (I know NAFTA says I don't have to pay the tax either anymore). So why can't I go to Russia were they don't have to abide by our outrageous copyright laws and buy something cheaper? How is that not rebelling?
[ link to this | view in thread ]
Excuse me? Mr. RIAA Shill?
I noticed you conveniently left out how they have kept the price of CD's artifically high since the inception of the CD.
If competition in the marketplace dictitated the price of music the prices would be much closer to allofmp3.com than the price list composed by the RIAA.
You may now return to your regularly scheduled shilling.
NV
[ link to this | view in thread ]
Solution to paranoia
Tell him to get a Credit Card with a low credit limit (say $200) to use only with online retailers with whom he is unfamiliar.
Even if the number is plastered all over the Internet, his exposure is limited.
And remember... the best defence against CC fraud is to check your CC statements.
[ link to this | view in thread ]
Prices rise
[ link to this | view in thread ]
Re:
I'm personally tired of this "consumer as victim" mentality people take on. Is Eminem and Beyonce like "crack"? If they don't distribute and price how you like, don't support them... support those that do. Boom. Change made manifest.
Sites like AllofMp3.com break that leverage, and allow people to take no responsiblility for creating the industry they loathe so much.
Phooey. Eyes open, people."
I tired of reading such clueless, ignorant trolls - most likely corporate shills paid by RIAA/MPAA - like this. Seriously, did you actually bother to read the original article?
I use AOMP3 *every week* and no, I WILL NOT USE any of your RIAA/MPAA masters' sites.
They are ridiculously expensive, they are restricting as hell, they don't offer high quality lossless music and their catalog is usually a joke compared to AOMP3, let alone what a joke is their search function or the fact that none of them follows the much-loved charge-by-megabytes paying scheme of AOPM3. Some albums I buy in FLAC and then I'm willing to pay more but otherwise I buy everything in 320k CBR MP3 for less.
It's a perfectly viable business modell minus you don't need giant RIAA-member publishers and record companies nor their Ferrari-owner executives. And it's been proved 100% that if these record companies wouldn't be there, aretists would make around 10-15x more money immediately, let alone they would reach a much-much bigger audience.
No matter how utterly ignorant/denialist you are, even you should be able to grasp the reality: the US music market was always totally controlled, absolutely monopolized. Now it's finally crumbling and it's about to come down, even if it's late, compared to the world. It's being slowed down as much as possible, thanks to paid corporate shills in the Congress but the consumer *will prevail* and shills and trolls like you will be remembered as paid mouthpieces or ignorant, blinfolded losers.
[ link to this | view in thread ]
Cleverboy is obviously a troll, paid by RIAA
"LOWER PRICES in order to compete with their own products from illegal sources. "
Stop fuckin lying, troll. LOWER PRICES TO COMPETE ON A MARKET WHERE THEY CANNOT DICTATE THE PRICES BECAUSE THEY DON'T ENJOY THE MONOPOLY, UNLIKE HERE, IN THE US WHERE THEY CAN BUY IT IN THE CONGRESS.
"This is a bullshit way to run a free market economy,"
I agree: THIS IS A BULLSHIT TO CALL IT A FREE ECONOMY WHEN YOU CAN BUY LAWS TO ENSURE YOUR MONOPOLY.
"and will NEVER happen in most civilized countries (with a legal system)."
It IS HAPPENING
[ link to this | view in thread ]
"LOWER PRICES in order to compete with their own products from illegal sources. "
Stop fuckin lying, troll. LOWER PRICES TO COMPETE ON A MARKET WHERE THEY CANNOT DICTATE THE PRICES BECAUSE THEY DON'T ENJOY THE MONOPOLY, UNLIKE HERE, IN THE US WHERE THEY CAN BUY IT IN THE CONGRESS.
"This is a bullshit way to run a free market economy,"
I agree: THIS IS A BULLSHIT TO CALL IT A FREE ECONOMY WHEN YOU CAN BUY LAWS TO ENSURE YOUR MONOPOLY.
"and will NEVER happen in most civilized countries (with a legal system)."
It IS HAPPENING
[ link to this | view in thread ]
[ link to this | view in thread ]
"How would you like it if you began selling something, and had to lower your price, because anyone could make a copy and undersell you (while smiling as your customers "stick it to the man")? No, I didn't think you would."
THEY DO PAY ROYALTIES - it's just not CRAZY HIGH AS YOUR RIAA MASTERS WOULD SET. You don't have a monopoly in RUssia, hahaha, that's what hurts, huh? :D
I'm soooo glad to see when corporate shills like you moan and whine about AOMP3... it just shows clearly what's the real deal, haha.
[ link to this | view in thread ]
Oh well, in the US we have a completely and utterly fucked up patent system which allows you not only to patent the word "windows" but also anything including a totally broad idea WITHOUT EVER PRODUCING or PROVING IT.
EU was very smart when they have voted against the lobbist in EP, paid by US companies.
PS: and I REALLY DON'T LIKE as the US government intervene at a foreign government for such bloodsucking corporate parasites like RIAA or MPAA - NOT FROM MY TAX, Mighty Freak Bushwhacker!
[ link to this | view in thread ]
The Truth is Out There...
SmartAlec, AllofMp3.com can easily determine the country of the person they are selling music to and require that at least there is a pretense of only doing business in its jurisdiction. They do not. Not only can origin be determined by IP address, but even by billing address for purchases. The excuse that they are operating legally in Russia is a ruse. It like watching magician who directs your attention to where he wishes the audience to look. Many online stores do not accept business from certain countries because of "fraud". AllOfMp3.com could easilyly not accept business from, "the U.S." for instance, because as they admit, it is only legal in Russia to use their service and they do not claim anything regarding the legality in other countries (due to the loophole).
People can say I'm a "troll" but I'm not the one speaking in ALL CAPS. I'm expressing my dissappointment in logical honest discussion on this topic. On one hand, people say "Support the musicians!" on the other, they say, "Screw the musicians!" On one hand they say, "RIAA doesn't pay musicians, musicians make money on concerts", on the other they say "Screw Madonna and her high concert prices, this is a scam to her fans!" It's bloody fucking stupid is what it is.
If we all went with compulsory licensing (which will never happen), we'd all be complaining about high taxes or complaining that the distribution of the money is totally unfair, given that the format wars are pretty much dying and usage is getting insanly ubiquitous for portable storage devices.
The analogy of warez works fine. If AllofMp3.com wasn't pirating, they wouldn't be pledging to correct their payment amounts. They know they're not in line. As I said, they're skirting responsibility and charging for it. They're closer to the "backup" sites offering "backups" of your software you supposedly own. I'm sure they're paying their bills, but the money they should be paying is in excess of what they're charging, simply put.
Human minds. Unlimited Rationalization. Hand and hand. Bad is Good. Hot is Cold. Cats and Dogs living together. It's madness.
[ link to this | view in thread ]
Re: The Truth is Out There...
Why should they have to? Their servers are in Russia. Their offices are in Russia. They are owned by Russians. There is no logical reason they should do business in any way other than required by Russian law.
If AllofMp3.com wasn't pirating, they wouldn't be pledging to correct their payment amounts.
That is incorrect. As AllofMp3 has explained, they are changing their payments amounts because Russian law is changing, as explained in the article above.
But the real reason is that your Warez analogy doesn't work is that Warez sites do not pay royalties at all, while AllofMp3 does pay royalties - royalties prescribed by Russian law.
[ link to this | view in thread ]
RE: The Truth is Out There
The recording industry as a whole is on a verge of either a major change in business model or the complete descruction of their industry. They are choosing to fight against change unless they can make their usual cut. They are using their money to buy potically favor from our government (well mine at least) to forcibly remove competitors from countries that wish to join the WTO.
The average cost to press a CD is less then $.01. I can burn a CD for less then $.10. But if I want to buy the product in the US I have to pay somewhere close to $15. That's a 1500% mark up. We as consumers need to say we aren't going to pay it anymore. They are trying to remove any avenue for us to do so. That's my issue. I don't believe in piracy and I don't think we should cut out the RIAA. A CD costs nearly the same as it did in 1982. With the advances in technology you would think the price would drop drasticly. This is not the case because of artificial inflation.
Yes allofmp3 can block sales based on location. Just like off shure gambling sites could block users based on location. Why? It's a legal loop hole. They practice business legally in the country they exsist. There is nothing that states that because I'm in America I can't buy a product in Russia. Unless said product is stolen in this case it is not. Allofmp3 wishes to exsist in Russia after this change in law. So they have to modify their business practices. That's fine. My issue is that our Government is wasting my tax dollars to forcibly make other countries change their laws because the RIAA doesn't want to let countries join the WTO without checking out all their potential MP3 download sites.
That being said maybe we should focus our efforts on the Government rather then RIAA or MPAA. Both of which are companies out to make a buck like any other company. It's our blood sucking money hungry poloticians that need to be changed so they no longer abide what the RIAA/MPAA mandate.
[ link to this | view in thread ]
Re:
[ link to this | view in thread ]
[ link to this | view in thread ]
AllofMP3 will go on and on
[ link to this | view in thread ]
[ link to this | view in thread ]