MP3s for pennies? Russian cops say no
Published: February 22, 2005, 2:22 PM PST
By John Borland 
Staff Writer, CNET News.com

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http://news.com.com/MP3s+for+pennies+Russian+cops+say+no/2100-1027_3-5586034.html?tag=nefd.top
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A Russian digital-music site offering high-quality song downloads for just
pennies apiece is the target of a criminal copyright investigation by the
local police, recording industry groups said Tuesday. 

AllofMP3.com has been operating for several years, asking consumers to pay
just 2 cents per megabyte of downloads--usually between 4 cents and 10
cents per song. Alongside the catalogue available at traditional stores
like Apple Computer's iTunes, the site offered access to songs from the
Beatles and other groups that haven't yet authorized digital distribution. 

The Russian site claimed it had licenses to do so from a local clearing
house, but record labels have maintained that the licenses weren't valid.
After long-standing complaints, the Moscow City Police Computer Crimes
division completed an investigation earlier this month and recommended that
prosecutors charge the site's operators with criminal copyright
infringement. 

"We have consistently said that AllofMP3.com is not licensed to
distribute our members' repertoire in Russia or anywhere else," Igor
Pozhitkov, regional director of IFPI Moscow--part of the International
Federation of the Phonographic Industry--said in a statement. "We are
pleased that the police are bringing this important case to the attention
of the prosecutor." 

The investigation marks a potentially substantial step forward in Russia
for copyright holders. Record labels and movie studios have sometimes had
difficulty persuading Russian law enforcement to deal with piracy problems.


A similar set of self-declared "legal" download sites arose in
Spain, claiming to have licenses to sell music from local copyright
authorities. Record labels sued both, and only one, Weblisten.com, remains
online. The other, Puretunes.com, settled with the industry for $10
million. 

 The Russian MP3 site claimed it had full rights derived from the Russian
Multimedia and Internet Society, as long as customers were planning to
download the songs for personal use only. In a message posted in English,
the site said it "does not keep up with the laws of different
countries and is not responsible the actions of non-Russian users." 

The Moscow City Prosecutor's office has until March 7 to decide whether to
act on the police department's recommendation. The IFPI has also submitted
its own formal complaint to the prosecutor's office. 

According to the IFPI, the Russian music market is ranked No. 12 in the
world, worth about $326 million in 2003. The group estimates that about 64
percent of music consumed in the country has been pirated, however. 



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