Russia Agrees To Shut Down AllOfMP3.com

Pro-SEO writes, "An official document (PDF), dated November 19, summarizes an agreement between the U.S. and Russia in which Russia has agreed to close down AllofMP3.com, and any sites that 'permit illegal distribution of music and other copyright works.' The agreement is posted to the Web site for the Office of the U.S. Trade Representative. It summarizes the joint efforts of the two countries to fight content piracy, an issue in which Russia and Eastern Europe figure prominently." From the document: "This agreement sets the stage for further progress on IPR issues in Russia through the next phase of multilateral negotiations, during which the United States and other WTO members will examine Russia's IPR regime."

Comments

The real PlaysForSure

[linuxci]

Although I've never used it I would have to say this site was the real Plays for Sure of the music world. It's a shame the record companies did not embrace this model as a lot of people would be willing to pay iTunes prices for DRM-free audio in a choice of formats. Instead the only site that offered consumers choice is being closed down which would be fair enough if a viable legal alternative would spring up, but until the RIAA start embracing technology that won't happen.

Re:The real PlaysForSure

[Dhalka226]

As I understood it, the artists never earned a penny from sales through this site, so it might be great for the consumers, but why on earth would you expect the music industry to embrace this?

Well if that is true, that's a shame. But he doesn't expect the RIAA to embrace the website; he expects them to embrace what the website offered: Choice of formats without DRM restrictions. Allofmp3, even at 320kbps MP3, was only like 20-30 cents per song and the grandparent rightly supposes that people would pay more for those same choices, even the $0.99 an iTunes track costs. I can vouch for this myself. I do not purchase from iTunes because of the DRM issues (the lack of choice too, but to a lesser extent) but would be happy to pay $0.99 for that 320 kbps MP3 if that is what I want a particular song in.

I doubt Allofmp3 was a charity operation, so they were making money even with the low prices. That means that if the RIAA were to set up an identical system, and increase the prices such that the highest bitrate MP3* was $0.99, they would have roughly 60 cents per download of guaranteed profit on top of whatever the production/distribution costs of the files are that they can split amongst the artists. Does the artist get 60% right now? Heck, even if the RIAA pocketed half I think the artists would still end up making more under this scheme than they do for the current incarnation of iTunes.

I think cinema tickets are too expensive, so I dont go, but you can bet that the number of people who *do* go outweigh the small loses by losing me as a customer.

That is a different issue. Cinema tickets are a limited resource. Once all the tickets for a show are sold out, they can't sell more. In that sense, losing you as a customer only matters if demand is less than the number of seats available. Otherwise, they simply won't even notice you did not come. If supply is great, they either need to add more show dates (which is not always feasible) or expand the theater size and hope that the next show that comes through has similar demand. If not, they're losing money.

Online music distribution is different. The costs to distribute another copy of a given song are miniscule, nearly negligible. The fact that you only produce that extra cost when somebody purchases the song means you ALWAYS make a profit on expansion. It would be like if every time somebody new wanted a ticket to that cinema show, a new seat--equally as good as every other seat in the place--would spring magically into existence. In this case, if you refused to buy a song because of the cost it would be a direct impact to them. Even if there are five buyers for every non-buyer, they'll still feel it because it's essentially free money to them. They had five sales where they could have had six, instead of having a sell-out where they could have had... a sell-out.

Allofmp3 obviously made this system work at less than $0.99 a song, so it's doable. The only explanation I can think of as to why the RIAA doesn't give it a shot is because they're control freaks who are desperately trying to prove to the world that they were somehow still needed when they really are not.

I'm sure piracy is a problem for them, although I'm also sure it's not nearly as big a problem monetarily as they would have us believe. The don't seem to realize that they can eliminate a large segment of that piracy by offering low-cost products. Pirating a $17 CD might be worth it. Pirating a $0.99 song becomes significantly less so. If I care enough about the song that I would want it at a high bitrate, such as this hypothetical new RIAA service would offer me, it would be even harder to find and less worth pirating.

But meh. Logic doesn't seem to be high atop the RIAA's list of traits.

* I keep mentioning 320kbps MP3 because that's what I got when I wanted a high-quality version. I could do OGG I suppose, but I don't; and honestly, I could personally hear no difference between the 320 MP3 and the FLAC when I compared once.

So much for the new enlightened Russia...

[Anonymous Coward]

Where else would you be able to make a deal with the government to shut down a private company that follows local laws? Of course it's not bribery if all you are giving in exchange is favorable trading regulations and a chance at WTO membership.

Western civ, we hardly knew ye...

[pla]

Russia has agreed to close down AllofMP3.com, and any sites that 'permit illegal distribution of music and other copyright works.'

One of the most significant contributions to human rights in all of human history came from Hammurabi - The concept of a written code of laws, which everyone could know and which applied equally to all people, thus making "justice" less subject to the biases of the king / emperor / caliph / whatever. He may not have quite lived up to that ideal, but as a basis for all modern reasonably-fair legal systems, it forms a cornerstone on which we've built everything since.

AllOfMP3, whether the RIAA like it or not, operated within Russian law (or at least, they did so until this past September). Whether or not the new law closes the "loophole" (if you can call strong fair-use rights and lax copyright enforcement by-design a "loophole") will have to wait for the Russian authorities to make a case against someone.

Either way, to announce the closing of AllOfMP3 as practically the basis of an international trade agreement strikes me as the most capricious undermining of the concept of modern jurisprudence imagineable. This announcement effectively says "The rule of law does not apply to the king's friends, and its protections do not extend to the king's friends' enemies".

Buildings do not remain standing very long if you undermine their foundations. This should chill us all for a much, MUCH deeper reason than merely the loss of a way to get cheap music. I personally never even used AllOfMP3, and this scares the hell out of me. Imagine the same precedent applied, 20 years or so from now, to the US trying to get some economic favor from China...

Re:Asshats

[estarriol]

and by now everyone except the UK is pissed of with how the US brings immense problems to the world, without having the slightest idea how to solve them.Speaking from and as part of the UK, I can assure you that the majority of the UK is extremely pissed off with US foreign policy, and the weakness of our own administrators who go along with it. This is most certainly not our finest hour.

Re:Asshats

[xtracto]

First off, at the end of the day AllofMP3 was not giving artists and production / media companies their required due, so what they were doing was immoral, if technically legal at the time.
Allof MP3 offered to pay royalties. All anyone had to do was fill out a form. The **AAs refused to deal with them,

The Russian Organization on Collective Management of Rights of Authors and Other Rightholders in Multimedia, Digital Networks & Visual Arts (ROMS) is the Russian equivalent to RIAA. Until September 1st 2006 the fact that Allofmp3 site payed the requird fees for the distribution of the intellectual property to this organization made the AllOfMp3 distribution legal. It did not made the "reception" of such intellectual property legal on your country but what they were doing was completely legal and moral in their country.

It is as simple as selling mariguana in the Netherlands. It is legal and moral to do it there, and in contrast it is illegal and immoral to sell it on the USA. It is legal to publish DIY methods for mariguana production while in other countries might not be the case.

Now, I do not know if *after* the amendment (see the link) the allofmp3 current practices became illegal, that would need to be tested in A RUSSIAN COURT. I hope it is tried there, and I hope Allofmp3 win. However, we will have to see that int he following months.

Hope this helps.

Re:Asshats

[1u3hr]

The *AAs have the right to refuse to deal with them, or any vendor they like. That doesn't give vendors the right to go ahead and sell their music anyway.

Under Russian law there is a compulsory licensing; i.e., a fixed rate mediated by a copyright bureau that collects from broadcasters and publishers and disburses payments. Something similar operates in many countries for radio broadcast rights, it's not a "communist" idea, just in case you were thinking that. Of course, if a rights owner and a publisher make their own contract, that will take precedence.

Re:Asshats

[jez9999]

No, England didn't.

And the rest of the UK certainly hardly gave them a 'resounding' victory. Our electoral system did.

Re:Nothing unusual is happening here.

[Dunbal]

You can't just pass a law that says that any intellectual property that happens to come within your borders (no matter how it got there) is fair game to be bought, sold, and copied by anyone who likes without any compensation to the owners of the rights to those properties.

      Yes you can. It's called sovereignty. If you don't like it your options are a) destroy that country's government by beating their army with your army or b) convince that government through incentives and international agreements to modify or eliminate that law.