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RIAA Members Sue Allofmp3.com Over Infringement

Posted by Zonk on Thu Dec 21, 2006 03:36 PM
from the long-time-coming dept.
fair_n_hite_451 writes "To the surprise of no one, several members of the RIAA have filed suit against MediaServices, the operators of Allofmp3.com. The suit was filed for Wednesday, primarily by Arista Records LLC, Warner Bros. Records Inc., Capitol Records Inc. and UMG Recordings. The language of the litigation was very confrontational; The companies claim the site sells millions of songs without paying them 'a dime'. 'The defendant's entire business ... amounts to nothing more than a massive infringement of plaintiffs' exclusive rights under the Copyright Act and New York law.' AllofMp3 has always maintained that a Russian licensing group makes their business legitimate, while the RIAA here claims the organization has no authority to make such a deal."
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[+] News: RIAA Goes for the Max Against AllofMP3 777 comments
Spad writes "Zeropaid is reporting that as part of its ongoing lawsuit, the RIAA will be seeking the maximum of $150,000 per song for each of the 11 million MP3s downloaded from the Russian AllofMP3.com between June and October last year. This amounts to roughly $1.65 trillion, probably a tad more than AllofMP3 has made in its lifetime. A representative of AllofMP3 stated: 'AllofMP3 understands that several U.S. record label companies filed a lawsuit against Media Services in New York. This suit is unjustified as AllofMP3 does not operate in New York. Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3 operates legally in Russia. In the mean time, AllofMP3 plans to continue to operate legally and comply with all Russian laws.'"
[+] Technology: Russia's War on Piracy/Malicious Software 150 comments
tmk writes "Russian minister Leonid Reiman has announced new legislation to fight software piracy. According to official information the share of pirated software in the Russian Federation decreased in the last years from 90 to 60 percent. Reiman dismissed as a myth the impression that many viruses originate in his country: 'Viruses are written all over the world. Russia is waging a consistent and successful war on malicious software.' Reiman calls for an international organization to fight Internet crime. Last year Russia agreed to take down Allofmp3 after the United States intervened."
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  • by LiquidCoooled (634315) on Thursday December 21 2006, @03:38PM (#17328266) Homepage Journal
    Its obvious why they haven't paid a dime:

    Russians pay in Rubles and kopeks.
  • by RelliK (4466) on Thursday December 21 2006, @03:40PM (#17328302)
    The lawsuit was filed Wednesday in federal court in New York

    Yeah. Good luck with that.

    • by melikamp (631205) on Thursday December 21 2006, @03:49PM (#17328456) Homepage Journal

      My sentiment exactly. I lived in Russia long enough to understand how this cookie crumbles. I cannot predict the outcome, for it depends on many things. I just want to note that, unfortunately for RIAA, it does not depend on the law. It mostly depends on two things:

      1. How much a decision will piss off the USA (the more--the better).

      2. The amount of a bribe. This seems to be in RIAA's favour, but I have a feeling that (1) might play a bigger role here.

            • by SQFreak (844876) on Thursday December 21 2006, @05:49PM (#17330364)

              Last time I checked, AllOfMP3.com only claimed to be legal inside Russia, and outside of Russia it was the buyer's responsibility to determine legality of the purchase. Which, of course, no one paid any attention to. Therefore, the response from VISA and MasterCard seems proper.


              Actually, it wouldn't, at least to me. VISA and MasterCard aren't just US companies; they're international alliances. So taking the action of yanking privileges for a service that's legal in Russia just because it's illegal in the United States (supposedly; there's still no court decision on that) would deny customers the opportunity to use their legally-obtained card to purchase legal goods in countries where the service is legal. Suppose Saudi Arabia demands that, because pornography is illegal in Saudi Arabia, nobody be allowed to purchase pornography using their VISA or MasterCard. VISA and MasterCard have to not give the opportunity to process their cards to pornography merchants in Saudi Arabia because they're conducting an illegal activity there, but they do not need to take away that permission from US pornography merchants, because pornography is legal in the US. Allofmp3 is currently legal in Russia. I can't see how an organization can say to Russians that they can't use their card to purchase legal goods. MasterCard is currently a non-profit org, at least in the US. It's hard to justify that action as a non-profit.
  • by smooth wombat (796938) on Thursday December 21 2006, @03:41PM (#17328308) Homepage Journal
    Check the organization that allofmp3.com claims has given them the right to do what they are doing. If the organization is legitimate, and has doucmented everything correctly, then the RIAA hasn't a leg to stand on.

    If the organization is not legitimate or doesn't have the proper paperwork, the RIAA wins.

    Instead of litigating this to death, just show the damn paperwork and prove your point.
    • by novus ordo (843883) on Thursday December 21 2006, @04:05PM (#17328718) Journal
      Allofmp3 was legal until this [wikipedia.org] legislation passed by Putin. Also with the recent spy scandals and Putin's dissolution of democratic institutions one has to be concerned. All Putin wants to do is join the WTO [theregister.co.uk] and RIAA is waving the USA stick with the help of their big pockets. Gotta love capitalism and free markets...
      • Re:Sure... but... (Score:5, Informative)

        by Alsee (515537) on Thursday December 21 2006, @09:28PM (#17332608) Homepage
        if the RIAA companies never ceded the right to contract their copyrights to this orginization, will U.S. courts respect the establishment of a foreign orginization given that power by law?

        They damn well better!

        AllOfMP3.com operates under a statutory license in Russian law.
        Pandora.com operates under a statutory license in American law.

        Russian law says that AllOfMP3.com is licensed to send music by any artist (including American artists) even if the copyright holder explicitly wants to forbid it.
        American law says that Pandora.com is licensed to send music by any artist (including Russian artists) even if the copyright holder explicitly wants to forbid it.

        Russian law says that AllOfMP3.com may send that music in any format they wish, obviously including MP3 format.
        American law says that Pandora.com is may send music in any format they wish, obviously including MP3 format. (Note: You can find these MP3 files in your TEMP folder with no file extension.)

        Russian law says that AllOfMP3.com must pay a government-set royalty rate to ROMS, a collection body that then distributes those payments to copyright holders.
        American law says that Pandora.com must pay a government-set royalty rate to CARP, a collection body that then distributes those payments to copyright holders.

        This Russian law is operating under the exact same legal principals as US law. The RIAA is lying out their ass when they bitch and scream that there is something wrong with sending stuff without permission from the copyright holder.... virtually every country on earth has statutory licensing in their law. RIAA is lying out their ass when they bitch and scream that there is something fundamentally wrong with Russian law.

        Oh, by the way.... the statutory licensing fees imposed on AllOfMP3.com by Russian law are about 20 TIMES HIGHER than the licensing fees imposed on Pandora.com by US law.

        But here's the really obnoxious part... the RIAA bullshit about AllOfMP3.com being evil Pirates Pirates Pirates because RIAA artists are "not getting paid a dime". It's true that American artists signed with the RIAA are not getting a singe dime out of AllOfMP3.com sales. AllOfMP3.com is paying the royalty fees to ROMS... so why aren't US RIAA signed artists getting paid? Because the RIAA refuses to accept the payments from ROMS. And the RIAA contracts require artists to sign over the copyrights to the RIAA member companies. The RIAA contracts say that only the RIAA companies can accept royalty payments for the work, and that the RIAA companies then pass on the artists share of teh payments to them. The RIAA contracts FORBID the artists to directly go and collect any payments themselves.

        So teh RIAA is deliberately screwing over their own artists and is refusing to accept these payments and pass them on to their artists.... because that way they can manufacture this bullshit argument that AllOfMP3.com is evil and illegitimate and illegal and Pirates Pirates Pirates because RIAA-signed artists are not getting paid.

        The RIAA's primary tactic is to simply chant the word "Pirate" over and over and over again until they get what they want... even if they have to LIE OUT THEIR ASS and SCREW OVER THEIR OWN ARTISTS in the process.

        (Note that I am not yelling at you, I am yelling about the RIAA and at the RIAA.)

        A US judge might rule on some of the complicated cross-national issues involved here, but I seriously doubt that any US judge would be stupid enough to rule that AllOfMP3.com was itself illegitmate or that Russian law was itself illegitmate. To do so would be a direct blow against US law operating on the exact same principals and a calamity for US radio stations and thousands of other US businesses operating under US law statutory licenses.

        -
  • by Bright Apollo (988736) on Thursday December 21 2006, @03:42PM (#17328326) Journal
    ... because AllofMP3 does what Napster and Rhapsody and iTunes cannot: offer a comprehensive music catalog at reasonable rates. To wit: if you really like jazz, this is the only place to find nontrivial Art (or Chet!) Baker, Charlie Parker, Buddy Rich, Charles Mingus, or Dave Brubeck.

    Is it illegal according to US law? Sure. Do I care? No. This is the modern equivalent of civil disobedience. Call it corporate disobedience: the ad infinitum extensions of copyright protection for works of long-dead artists, as a benefit to corporate parents, says the balance of power is most assuredly in the hands of the sociopathic corporate citizenry and not the voting public. The weapons I have against Big Business are economic, and this is just the first of many conflicts to come, all along the same lines.

    Just mull it over. Corporate disobedience might be the only option now.

    -BA

    • by DrEldarion (114072) on Thursday December 21 2006, @04:09PM (#17328760) Homepage
      Reasonable rates by whose definitions? Yours? I'd like a new Corvette for $10,000 - I think that's reasonable. That doesn't mean that I should be able to justify buying a stolen one for ten grand.

      Listen, I don't like the RIAA, either, but THEY get to decide how much they want to sell their product for, and your (moral) choices are "Do I pay this?" or "Do I not pay this?". "Do I pay 1/5th the amount to someone who gives nothing back to anyone who made an investment into this music" is not a valid moral option. Until more artists start selling their own stuff directly, this is going to be the way it is, and you can justify your actions any way you want, but that still doesn't make them right.
      • by FreezerJam (138643) <.ten.xev. .ta. .htims.> on Thursday December 21 2006, @04:34PM (#17329170)
        "... THEY get to decide how much they want to sell their product for..."

        Not always, and not always even in the U.S.

        http://en.wikipedia.org/wiki/Statutory_license [wikipedia.org]

        Similarly, in Canada I can fill a CD with music copied from other CDs because the levy (C$0.21 per CD, built in to the price) goes to a copyright collective. More to the point -- if it's music on a CD, the owner CAN'T legally prevent me from making that copy. This is true even if I don't own the CD; I can borrow the original from a friend, make my copy, and return it.

        There are many places under copyright strictures where the copyright holder doesn't get all the say they want or think they have.
  • by Anonymous Coward on Thursday December 21 2006, @03:43PM (#17328348)
    PLEASE DEAR GOD let this become a fight between the RIAA and the Russian Mafia.

    Russian Mafia FTW!
  • My subject says it all.

    Why is the RIAA trying to sue someone in another country. The US has no jurisdiction.

    Does the site have a presence in the US? Well? If it doesn't then they can get bent. Now they can go after all the people who paid the site to download songs, but not the site in Russia.

    Please America, don't try to bring your horrible legal system to the rest of the world. We don't want it.

    • by Ogive17 (691899) on Thursday December 21 2006, @03:56PM (#17328560)
      It matters when US citizens are members of this service. I have one friend who is a member and even she thought it was a bit fishy... but she was paying $10 or $15/month for unlimited downloading. I assume this is how they are going after the company, because they provide their service in the United States.

      And slightly off topic, our legal system does a pretty good job. The only change I would like to see done is to make plantiffs pay all court costs/legal fees if the defendant was proven to be non guilty in a civil matter. That would fix so many problems.
    • by tshak (173364) on Thursday December 21 2006, @04:50PM (#17329400) Homepage
      Does the site have a presence in the US? Well? If it doesn't then they can get bent.

      It's called "international copyright law". In parciular, the Berne Convention [cornell.edu], was not developed in the US, but was an international effort. Russia is a member of the Berne Union. The RIAA, hate them as I may, clearly has grounds to file a suit here.
  • by Naughty Bob (1004174) on Thursday December 21 2006, @03:45PM (#17328392)
    The companies claim the site sells millions of songs without paying them 'a dime'.

    You'd have thought that allofmp3.com would just hand over the dime.
  • by Fallen Kell (165468) on Thursday December 21 2006, @03:48PM (#17328432)
    AllofMP3.com pays the correct proceeds under Russian law to ROMS (Russian Organization for Multimedia and Digital Systems a.k.a. similar to the RIAA in Russia). ROMS is a non-for-profit organization that handles all copyright payment transactions in Russia, including collecting for foreign interests. All the money is held until it is requested by the appropriate parties with proof that they are the correct owners of the copyrighted material. All requests can also be retro-active requests for payment, (i.e. if you have been the owner of the work, and have not received your cut for the last 4 years, you simply request that you receive your payments for the entire time that you have been the copyright owner).

    The RIAA knows this and so do their member groups. The issue is that they do not want to request the payment because they think doing so will give legitimacy to places like AllofMP3.com who are following the Russian rules to copyright payments. The RIAA does not like the Russian rules and seeks to circumvent them. By not requesting for their payments they are trying to use that as a means for the lawsuit(s) you are now witness to over the last few months against different Russian sites.
  • by slobber (685169) on Thursday December 21 2006, @03:49PM (#17328450)
    Even if they manage to shut allofmp3.com down, they'll be playing a Russian version of whack-'em-all for a while. Check out its sister site alltunes.com [alltunes.com] - you should even be able to transfer your credits from allofmp3 there.
  • by Harlockjds (463986) on Thursday December 21 2006, @03:59PM (#17328610)
    ~he companies claim the site sells millions of songs without paying them 'a dime'

    bullshit i remember paying a dime for 10-100 songs from allfomp3 ;)
  • Maybe I misheard.. (Score:4, Insightful)

    by ChowRiit (939581) on Thursday December 21 2006, @03:59PM (#17328614)
    Now this is, admittedly, hearsay, and I've not gone to look for collaboration:

    What I'd heard is that allofmp3 PAYS royalties, but the American firms refuse them, as they're "not enough". So when they accuse them of not paying a dime, it's because they won't accept the payments, more than anything else... Can anyone confirm/deny this?
  • by GodInHell (258915) * on Thursday December 21 2006, @04:12PM (#17328808) Homepage
    Q: What does New York / U.S. law have to do with a Russian company.

    A: U.S. courts have juridiction in cases where the party to be sued has "such miminal contacts" that allowing the suit would not violate traditional notions of fairness and justice. The US courts have allowed jurisdiction when it is clear that the offending company has intentionally directed buisiness into, and solicited buisiness from, the United States and her citizens.


    Here allofmp3 has all the hallmarks of past cases which have succeeded - site is in english, offers prices in U.S. dollars, advertises on U.S. websites and media.


    Since their acts take effect here, laws which govern the effect will rule.


    Q: How will they enforce the ruling?

    There are several ways - the RIAA companies could freeze allofmp3's funds with a court order, and call upon Russia (through the effect of U.S. - Russia treaties) to supply the amount demanded by the judgement. They can asses the value of AllofMp3's domain name and seek to have it sold off to cover the damages. U.S. credit cards and pay-pal could be ordered to cease making payments to allofmp.


    Q: How will they get these guys in custody? Russia won't hand them over.


    This is a civil case - jail time is not on the table.

    -GiH