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Record Labels Sue AllofMP3.com
Wednesday, December 20th, 2006 at 2:00 PM - by Jeff Gamet
The Russian music download site AllofMP3.com is facing the wrath of the recording industry now that several prominent recording labels have filed a law suit against the company. In the suit, the record labels claim that AllofMP3.com has been profiting from music sales without permission, according to Forbes.
Arista Records LLC, Warner Bros. Records Inc., Capitol Records Inc., UMG Recordings Inc., along with other recording labels filed the suit in U.S. federal court in New York against the parent company for AllofMP3.com and allTunes.com, Mediaservices.
The suit states " [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," and that AllofMP3.com sells millions of songs without the right to do so, and without paying any royalties to the recording labels.
Mediaservices claims that it is operating within Russian law because it pays royalties to a Russian licensing group. The recording labels, however, disagree, claiming that the licensing group doesn't have the authority to act on their behalf and collect and distribute royalties.
The company's headaches go beyond legal battles with the recording industry. In November, Russia agreed to shut down companies that distribute copyrighted works illegally, and specifically named AllofMP3.com. The move was part of an agreement with the United States to help stop Internet-based piracy in Europe and Russia.
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