Record firms sue Russian MP3 site – Allofmp3.com
A group of US record labels has started legal action against Russian music download site Allofmp3.com. The lawsuit was filed in New York on behalf of Arista Records, Warner Bros, Capitol and UMG recordings. They are suing Moscow-based Mediaservices, which runs Allofmp3.com and another music site, allTunes.com.
The record labels say the sites are selling songs without permission. But Allofmp3.com argues it is paying royalties to a Russian licensing body. The music industry says that the Russian licensing group does not have the authority to collect and distribute royalties. Allofmp3.com sells albums for about $1 (60p) and charges only a few cents for songs. By contrast, the world’s most popular music download service, iTunes, charges $10 (6) for an album.
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