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Visa Cuts Off AllOfMp3.com

denebian devil writes "On the heals of allofmp3.com's press conference trying to clean up its image, Visa has suspended its credit card service to allofmp3.com. From the article "[Allofmp3 is] no longer permitted to accept Visa cards," said Simon Barker, a Visa International spokesman. "The action we've taken is in line with legislation passed in Russia and international copyright law." Almost simultaneously, allofmp3.com has announced that it is shifting over to an ad-supported model. For those who don't want to (or can't) buy allofmp3's DRM-free music, they are providing DRM-laden music that can be played only within a restricted player provided by the website."

25 of 394 comments (clear)

  1. For everything you want to buy... by MoOsEb0y · · Score: 5, Funny

    ...there's Mastercard.

    1. Re:For everything you want to buy... by igny · · Score: 5, Informative

      Mastercard cut off AllofMP3 as well.

      --
      In theory there is no difference between theory and practice. In practice there is. - Yogi Berra
    2. Re:For everything you want to buy... by NetDanzr · · Score: 4, Informative

      That's where paying through third parties comes in. I've been using XROST for over a year when recharging my Allofmp3 account, and that method has been always working well. Similar system has been working with sports betting sites for a while, and given how easy it is to reroute money I don't think non-US based businesses will have to shut down anytime soon.

    3. Re:For everything you want to buy... by chill · · Score: 4, Informative

      Mastercard cut off AllofMP3 as well.

      No, they didn't. Mastercard is the only credit/debit option that works, as of 5 minutes ago.

      --
      Learning HOW to think is more important than learning WHAT to think.
    4. Re:For everything you want to buy... by Balthisar · · Score: 4, Informative

      Just tried my Mastercard, and then I stopped. It looks like payments are now being outsourced to some place called www.e-centru.com, which is in Moldova. I don't remember ever being redirected to another payment site in the past, although it's showing that I last recharged my account on March 17th, 2005 (I don't buy a lot of music [or pirate it for that matter]). Anyone else ever been directed to this company to accept payments? It *is* showing just Mastercard as an option.

      Well... here goes. That's what fraud protection is good for.

      Well, it worked. Now I've got to figure out $25.25 worth of music that I want. I wish they had audiobooks.

      --
      --Jim (me)
    5. Re:For everything you want to buy... by dmitrygr · · Score: 5, Informative

      Actually, if you go to alltunes.com, and register there, the balanace is shared with allOfMp3 (you can refill it at alltunes, and use at allofmp3), AND alltunes STILL works with visa (as they use a 3-rd party processor "CHRONOPAY")

      --
      -------
      1. Enjoy your job
      2. Make lots of money
      3. Work within the law

      Choose any two.
  2. AllOfMp3.com's Legality (or lack of) by eldavojohn · · Score: 5, Informative
    This whole time AllOfMp3 has been operating, it has been under a clause in the Russian government's legislation (from their site):
    The availability over the Internet of the ALLOFMP3.com materials is authorized by the license # LS-3?-05-03 of the Russian Multimedia and Internet Society (ROMS) and license # 006/3M-05 of the Rightholders Federation for Collective Copyright Management of Works Used Interactively (FAIR). In accordance to the licenses' terms MediaServices pays license fees for all materials downloaded from the site subject to the Law of the Russian Federation "On Copyright and Related Rights". All these materials are solely for personal use. Any further distribution, resale or broadcasting are prohibited.

    The works available from ALLOFMP3.com are protected by the Law of the Russian Federation "On Copyright and Related Rights" and are for personal use of a buyer. Commercial use of such material is prohibited. Recording, copying, distribution on any media is possible only upon special consent of a Rightholder.

    The user bears sole responsibility for any use and distribution of all materials received from AllOFMP3.com. This responsibility is dependent on the national legislation in each user's country of residence. The Administration of AllOFMP3.com does not possess information on the laws of each particular country and is not responsible for the actions of foreign users.
    Read that last paragraph, if you've been in the United States & using AllOfMp3.com, they've been shifting legality issues to you. Visa has now chosen to recognize this issue and not be party to breaking the law.

    So, to recap, it seems that media in Russia is still somewhat regarded as belonging to the people. However, this is not true in many other countries.

    I cannot say I blame them with the gustapo **AA about.
    --
    My work here is dung.
    1. Re:AllOfMp3.com's Legality (or lack of) by minus9 · · Score: 5, Funny

      "(sodomy anyone?)."

      Not for me thanks.

    2. Re:AllOfMp3.com's Legality (or lack of) by Pofy · · Score: 4, Insightful

      >So if you live in Russia and have a VISA card can you still not use your VISA card at
      >allofmp3 even though it is legal for you to use that site?

      What does were you live have to do with it? What law makes it illegal for you to buy the music from Russia if you live in another country? Or are you claiming that USE, Turkey, Japan, South Africa (or whatever other non Russian country you might prefer) have some law forbiding you to purchase from another country? And what would that have to do with copyright who for sure doesn't have such limitations (we are talking of purchase of single number of copies of each song and for personal use, just like if you have bought the CD while in Russia and bring it home with it, just mentioning it so that you don't have to claim anything about import and I have to reply to tell about what is covered by the import part in copyright law and what is not).

    3. Re:AllOfMp3.com's Legality (or lack of) by Pofy · · Score: 4, Informative

      >2) Import laws (goes something like "copies that couldn't
      >legally have been made in the US, can't be imported to the
      >US". Since the Russian law doesn't apply in the US, you
      >can't import copies made under that law.

      Why do people who don't know the law, insists on making up their own version of it? Here is a link to the relevant law you probably think you are telling about:

      http://www.law.cornell.edu/uscode/html/uscode17/us c_sec_17_00000602----000-.html

      Note the exceptions (2), which would be applicable to anyone buying music over the net in single quantities of each work. Thus, it doesn't count as importation and the restrictions you refer to are not applicable and irrellevant.

    4. Re:AllOfMp3.com's Legality (or lack of) by swillden · · Score: 5, Informative

      Visa makes money off of every transaction.

      "Visa" doesn't make money on transactions. The various organizations who own the Visa brand are banking consortia. Their job is to manage the brand name, define payment standards, validate implementations of those standards, and generally do whatever makes sense to facilitate their membership's ability to make money. The Visa organizations are primarily funded by dues paid by the member banks.

      When you make a Visa payment, the money passes through two or three sets of hands. It goes like this:

      1. The merchant submits the transaction to a bank the merchant has a relationship with. This bank is called the "merchant acquirer". Some of the big merchant acquirers don't do any retail or wholesale banking, but are just transaction processors. Nevertheless, they're banks. They have to be.
      2. The merchant acquirer submits the transaction either to a clearinghouse (which, with one notable exception, is not really related to any official Visa organization) or directly to the bank that issued your credit card (called the "issuer").
      3. The issuer validates the transaction and sends a notification back to the merchant acquirer (possibly via the clearinghouse).
      4. The merchant acquirer (eventually) puts money into the merchant's bank account.
      5. The issuer sends you a bill.

      The merchant acquirer and issuer both make money on the transaction, and the clearinghouse, if any, takes another small slice. The issuer obviously also makes money on finance charges if you don't pay your balance off right away.

      All of this just highlights the fact that none of these players have any interest at all in shutting off the flow of money to allofmp3. The acquirer that allofmp3 uses is a Russian bank, so they have no legal issues, and plenty of interest in taking a slice of allofmp3's business. The various issuing banks are individually anonymous in the situation, they figure their only responsibility is to make sure that the transactions are not fraudulent -- mainly because they don't want to end up potentially footing the bill for the fraud. The clearinghouses just want to push transactions from point A to point B.

      Each player can point to the others and say that it ought to be their decision as to whether or not payments from a certain merchant should be accepted. The most logical decisionmaker as to the legitimacy of the merchant is the acquirer -- and that's the Russian bank for whom there's no legal issue!

      I find it quite surprising that Visa International decided to step in and order their members (the organizations who pay them!) not to accept allofmp3.com payments.

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    5. Re:AllOfMp3.com's Legality (or lack of) by yppiz · · Score: 4, Informative

      Correct me if I'm wrong, but I believe Visa (the corporate entity) also runs VisaNet, the network over which Visa transactions are sent, and charges a small fee per transaction.

      Also, here is an excerpt from the Wikipedia entry for Visa decribing Visa's complex corporate structure.

      *

      Legally, Visa comprises four non-stock, separately incorporated companies that employ 6000 people worldwide: Visa International Service Association ("VISA"), the worldwide parent entity; Visa U.S.A. Inc.; Visa Canada Association; and Visa Europe Ltd. The latter three separately incorporated regions have the status of group members of Visa International Service Association, whereas the unincorporated regions (Visa Latin America [LAC], Visa Asia Pacific and Visa Central and Eastern Europe, Middle East and Africa [CEMEA]) are divisions within VISA.

      --Pat

  3. Thanks Visa! by Rosco+P.+Coltrane · · Score: 4, Insightful

    For those who don't want to (or can't) buy allofmp3's DRM-free music, they are providing DRM-laden music that can be played only within a restricted player provided by the website." ... that anybody can promply record/reencode DRM-free.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  4. Beatport by GroovBird · · Score: 4, Insightful

    Not to worry.

    I never had any issues with paying for my music. I had issues with the DRM that was applied to that music. AllofMP3 offered that same music without DRM. If they turn out to be illegal (because the group they pay royalties to turns out not to have to license the music to AllOfMP3) then so be it.

    I found an alternative, that better suits my taste of music and is completely legit, but a lot more expensive.

    http://www.beatport.com/

    Dave

  5. "Heals" ~ "heels"? by OakDragon · · Score: 4, Funny
    "On the heals of allofmp3.com's press conference..."

    * groan *

    My inner grammar Nazi is involuntarily goose-stepping after reading that.

  6. Back to piracy then... by bteeter · · Score: 5, Insightful

    No one wants DRM music. That was a primary reason everyone used AllofMP3.com. That and the price of course. Now instead of AllofMP3 customers paying a small fee for music, I bet a lof of them will hit Shareaza and the file share networks again.

    Great move RIAA...

    Take care,

    Brian

  7. alternative by dhuff · · Score: 4, Insightful

    Looks like you can point your browser back to Mother Russia at Alltunes.com and be back in business pretty quick (incl. payment with Visa).

  8. Re:Aaaayyyyyy. by Anonymous Coward · · Score: 5, Funny

    Shark jumps you?

  9. No problem for me by edmicman · · Score: 4, Funny

    I'll just stick to sending them envelopes of cash like I've always done!

  10. Reminder: AllofMP3 uses broadcast rules by Uninvited+Guest · · Score: 4, Informative

    FWIW, remember that allofmp3.com claims to be "broadcasting" music on demand over the Internet, under the broadcast laws in Russia. Allofmp3.com pays its royalties based on those broadcast rules. This is similar to how ASCAP, BMI, and SESAC work with broadcast radio stations in this country; the royalties are sent to an agency which distributes the proceeds directly to the artists. The RIAA and others are claiming that allofmp3.com is duplicating and distributing recordings without paying for the rights to do so. Depending on how Russian law on broadcast rights is worded, allofmp3.com may be perfectly legitimate.

    --
    Sometimes I worry that I'll develop Alzheimer's disease, but no one will notice.
  11. My $0.02 by MyLoveIsAJoke · · Score: 5, Insightful

    allofmp3.com = Beautiful business model. If it is truly not legitimate, this should be a cue for a ligit company to start up stateside using a similar model. RIAA = Epitome of how an organization should not be run for 3 reasons. #1 is they screw over thier cash cows (the "artists"). #2 it screws over its buyers (us). #3 Thier suckyness is impacting the health of thier business, and will eventually, although it'll take a while and require alot of kicking and screaming, they will fail. Had they created a site like allofmp3.com in 1996 when I began using electronic copies of music...they could have saved themselves. iTunes sucks. Plain and simple. iTunes doesn't carry much of anything I listen to, its DRM is a pain in the balls, and $0.99 is too much to pay for a track with the fraction of the overhead of a record (conventional)store. That is all I have to say.

  12. Re:XROST? by NetDanzr · · Score: 4, Informative
    XROST is simply an on-line gift card shop. You purchase a gift card, and get a card number and pin code in return. You input this information into Allofmp3, and your account is recharged.

    Not so long ago, XROST still worked with PayPal. Currently, it works primarily with prepaid cash cards - the type you mention - but also with Click&Buy, which is available in the US. I've got family in Europe, so for me it's easiest to Skype them and ask for one of the cash cards.

  13. Re:I'm not sure a US court would agree with the la by Pofy · · Score: 5, Insightful

    >Once you bring your purchase into the US, US law applies.

    Yes, but please tell what specific law you have in mind, there really is none.

    >The fact that you bought the item in Russia doesn't necessarily
    >mean that Russian law applies.

    The purchase is done under Russian law if done in Russia. That is allofmp3's responsability. If a person then wants to use what they buy there to break the law in another country is that persons responsability. In the case in question, there is no such law violation though since it is perfectly legal to brgin a copy of a song or music into USA from other countries.

    >I'm not a lawyer, but I believe that the AllOfMp3 site violates
    >the spirit, if not the letter, of international copyright law.

    What spirit? Are you claiming that there is a spirit that says any product with a work protected by copyright can not be moved from one country to another? I suppose someone should tell that to all the stores on international airports selling music CDs. For the record, no, there is no such restriction or anything at all about such restrictions in copyright laws, treaties or that like.

    >That being the case, you're correct that the user isn't breaking the law. It's just a
    >convenient way for AllOfMp3 to shift the blame:

    So allofmp3 is not breaking the law and the buyer is not breaking the law, who is and what law?

    >We can't be responsible if US or EU users are downloading content that they shouldn't.

    What do you mean "shouldn't"? Either there is some law making it illegal or there is not. It happens to exist no such law.

  14. Re:great timing ;( by Catbeller · · Score: 4, Insightful

    "As far as I know, allofmp3 does not have license to distribute its songs in the US. Therefore, selling songs in the US is an act of copyright infringement in the US."

    They aren't in the U.S. There are no treaties involved, no trade agreements either. U.S. law does not apply outside of the U.S., with the exception of us kidnapping people around the world and torturing them to death, which apparently is legal whether anyone else in the world objects or not.

    And, to clarify the issue, think of it as people *phoning* a Russian server and listening to recorded music on the phone for a fee. Imagine them recording the sound with an old-fashioned tape recorder. This would break no law in the U.S. or Russia. It's not even a metaphor, it's what we're doing.

  15. Re:great timing ;( by TheGratefulNet · · Score: 4, Insightful

    mod me a troll?

    this isnt' a troll post people, get a clue.

    it IS true that the mpaa is not the same as law enforcement. and visa is also not law enforcement.

    if I wanted to buy playboy mags, will visa 'use their morals' and stop me? no? oh really!

    how is this any different. they claim some law is being broken but they can't ennunciate what, exactly that is.

    again, I say - if a law is being broken, call the cops. visa is NOT my police force and I object to them even thinking they are allowed to wear that hat.

    you KNOW that pressure is put on visa from the record industry. in that light, I see the mpaa/riaa as no worse or better than the 'russian mob'. you can't claim you are following what's good and right and yet be pressured by NON LAW ENFORCEMENT LOBBY GROUPS.

    either you are a money brokering business OR you are in the morality and law enforcement business. you cannot be in both. and shouldn't be.

    (just because you (mods) may disagree with me - that does NOT make this a troll post. sheesh!)

    --

    --
    "It is now safe to switch off your computer."