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October 18, 2006 11:35 AM PDT

Visa halts its service for allofmp3.com

Credit card company Visa International said Wednesday that it has suspended service to music download site allofmp3.com, the latest setback for the Russian company accused in the U.S. of pirating music.

"It's 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."

The news comes as allofmp3.com launches a public relations campaign to counter claims by the U.S. government that the site is an outlaw operation. On Tuesday, allofmp3.com announced plans to give away hundreds of thousands of albums for free, according to a story in the International Herald Tribune.

U.S. trade representatives say allofmp3.com is profiting from unauthorized music sales. Executives of allofmp3.com say that the company carefully adheres to copyright law in Russia. That doesn't satisfy U.S. music labels' concerns about copyright infringement, however.

Like music download sites that came before it, such as Napster and Kazaa, allofmp3.com offers unlicensed music for deeply discounted prices.

After years of court battles, Napster and Kazaa now cooperate with record companies. Other sites around the globe, such as Spain-based Weblisten.com, have succumbed to legal pressure and shut their doors.

The U.S. has indicated that by allowing allofmp3.com to continue operating, Russia could be jeopardizing its bid to join the World Trade Organization.

See more CNET content tagged:
Visa International, Russia, music download, copyright law, Kazaa

Add a Comment (Log in or register) 38 comments (Showing first 20 comments)
Napster and Kazaa?
by airwalkery2k October 18, 2006 12:44 PM PDT
Napster and Kazaa were free, I was lead to believe. Not at a deeply discounted price.
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Unlicensed? Maybe here...Not there,,,
by LarryLo October 18, 2006 12:45 PM PDT
" Like music download sites that came before it, such as Napster and Kazaa, allofmp3.com offers unlicensed music for deeply discounted prices."

I don't know if I agree with this. allofmp3 states they are absolutely licensed "in Russia" and that they regularly make payments to the RIAA equal in thier country. I have no way of verifying this but its their argument.

I don't think its fair to compare them to Kazaa and Napster which were free for all peer2peer networks. Without even the scent of legitmacy as per music files.

AllofMp3 is more accurately described as a really cheap iTunes for Russians. (not that I am defending them).
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*shrugs* I just canceled my citibank Visa
by Jonathan October 18, 2006 12:46 PM PDT
Fine by me. The only reason I kept my Visa around was because of allofmp3. I just canceled my CitiBank card and signed up for MC. No skin off my back.
The RIAA and its lackies can all burn for all I care.
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How much did the RIAA pay Visa?
by StinkyMcButt October 18, 2006 12:52 PM PDT
When did Visa become an artist rights organization? They can simply decide that they feel a business is doing something wrong and suspend the privileges without any legal recourse?

What if Visa decided that they didn't want to handle donations to Deomcrats? Or to certain non-profits that oppose big business? Or to adult video stores? Where does it end? Does Visa have the right to decide where, when, and how I spend my money?
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How much did the RIAA pay Visa?
by StinkyMcButt October 18, 2006 12:57 PM PDT
When did Visa get to decide where, when, and how I spend my own money?
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Watch then get reinstated
by Flytrap October 18, 2006 1:22 PM PDT
I'm sure Visa do not want to lose their entire business in Russia just because of RIAA
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They ARE crooks
by JonathanB October 18, 2006 1:27 PM PDT
I dunno about this business with the Russian law, but the people who run allofmp3 are crooks. They lie about the source and quality of their downloads, and the sell your e-mail address to anybody who asks for it. (I have proof, as I use a unique e-mail address for each online company I gave my e-mail to.)
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The fact of the matter is....
by naterandrews October 18, 2006 1:33 PM PDT
Sure, AllOfMP3 may possibly be legal, or it may not. But the fact of the matter is, it gives people what they want, when they want it, and how they want it.

It's a simple fact that if the Big 5 actually listened to their customers and fans, people would buy more "legal" music.

1- DRM, unfortunately, is here to stay. Why not make it as unobtrusive as possible? I don't want to be locked into having to use the song on my iPod only. What if I get a new device that uses WMA? Make the media and DRM interoperable.

2- Better value. When I purchase a CD at $15, which has an average song count of 15 songs.... suddenly, iTunes doesn't look like a good deal. Sure, I can go subscription, but I actually want to have a copy of the song "of my own" (and yes, I know I'm just buying the "rights" to use the song). One of the key factors to AllOfMP3's success, is it's pricing. Tiered pricing, if launched properly launched and accepted, can give customers a good deal. That, however, is NOT an excuse to charge more than a dollar per song.
The "Wal Mart Effect" will win if you allow it. Sell lots of songs for little money (say, as low as $.30/song) and you WILL sell more than you would at a much higher price. Stop ripping us off, and we will show you loyalty. Screw with us like you have, and now you see where we go.....

3- Stop assuming everyone is out to steal your content. By integrating root kits and other nasty tech into digital media files and CDs, you are basically saying that you don't trust any of your customers. If I love a song that I just listened to, and I want a friend to hear it and give them a copy- you should feel HONORED. Honored that you may have a new fan/customer that may want to buy your content. Let us share, stop locking everything down, and again, we will reward you with loyalty.

AllOfMP3 would not last very long if the Big 5 accepted their fate and evolved. Using some tips from above and giving customers more incentive would go a long way to ensuring we all have a better digital media experience. Until then, AllOfMP3 is on my bookmarks list.
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Mastercard...
by eric.l October 18, 2006 2:03 PM PDT
Thank you for not telling me how I can spend my money.
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AllofMP3's "Strangest Press Conference Ever"
by akovacevich October 18, 2006 2:07 PM PDT
The behind the scenes tale of AllofMP3's press conference yesterday:

http://www.potomacflacks.com/pf/2006/10/firm_arranges_s.html
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That's ok, they accept Paypal
by Ordeith October 18, 2006 2:24 PM PDT
and paypal accepts visa so the site can still accept visa by proxy.
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There's only one thing wrong . . .
by SandFarmer October 19, 2006 5:51 AM PDT
which is their pricing structure and that the record companies are not getting their billions. That's the gist of this whole thing.

This is one of the best looking and operational sites I have ever seen. As a member you can preview the whole cut/album instead of just 30 seconds. The site is very pleasant on the eye (clean and professional). Navigation is European logical and not American expected. Tough, once you understand, you'll do just fine. The ability to choose your format and quality level and the way the product is delivered, is shear genius. We won't being seeing this in the states.

I agree that the Artists and the Record Companies should get their "FAIR" share. But enough is enough. I use to work for several record companies and the gluttony and monetary waste was/is appalling. But their over zealous money grubbing is coming to an end and anything that promotes that scares them and the purveyors of this become fair game in their eyes. Get over yourselves and be thankful we want your over priced music. I was told by a Peaches/Sound Warehouse Regional Manager when the CD was coming out that I would love the new format and that it allow them to "Lower" the price since they were cheaper to make. I haven't seen CD's any cheaper than vinyl and vinyl is still better sounding. It's obvious that we're over their antics. Look at the demise of Tower Records.

All this threatening and cutting off services is only going to push those "buyers" to peer-to-peer DL services and no one will get any cash.
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They have a way around this already...
by gernblan October 20, 2006 5:45 PM PDT
...by using another service to handle their credit cards (I do NOT buy from them, ok?? I just was curious and looked at how they are handling things due to this. I was curious how they would respond and I had a lot of popcorn made and needed something to do while I munched on it (extra butter too! Yum!)).

So no big deal, they didn't miss a beat. Miss a beat, get it? That's a funny. A music download site, not missing a beat? Music? Beat?

Oh, nevermind.
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AllofMP3 is a fantastic service
by audiotruth October 20, 2006 7:55 PM PDT
I won't candy-coat this... thankfully there are several ways to pay for the AllofMP3 service so Visa and Mastercard be damned. The selection of music available at the brilliantly designed site simly blows the doors off iTunes, Rhapsody, eMusic, etc. They offer a longer preview than the typical (and utterly useless) 30 seconds per song that every other site offers, which for some types of music (ambient for instance) is a god-send. Furthermore, unlike the infuriating iTunes, you can preview an entire album at once. Also importantly, you can choose the quality of the download in terms of bitrate, all the while purchasing music at prices that make me buy more music and expose myself to many more bands and albums than I would at a buck a track.

The fact that the record labels have elected to not sign on with the Russian version of performance rights organizations BMI, ASCAP, and SESAC is not AllofMP3's fault. And the truth is that I buy more discs now from Amazon et al BECAUSE I have been exposed to so much more incredible music at great prices from AllofMP3. The RIAA and the U.S. gov't have absolutely got to end the Gestapo-like policing of this issue. Enough said.
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What are CC companies thinking these days?
by VikingByNature October 26, 2006 6:02 PM PDT
Ok, now, credit card companies working to fight online purchases of child porn is one thing but, music sites...come on!

I use AllOfMP3 all the time and, in all honesty, I think AllOfMP3 is an awesome site! So far, the best part about AllOfMP3 is that, due to the fact that AllOfMP3 contains far more artists and albums than most other music sites, AllOfMP3 has introduced me to some of the most interesting artists and music (from around the world) I?ve ever heard--much of which I?ve NEVER heard of before!

Although I do feel sorry for the artists losing some money due to the cheap downloads, I think it?s time for all of today?s musicians to realize that music is ripped and shared for *free* a few billion times per month worldwide! I think it?s also time that, with all-due respect to the musicians, if musicians care about making lots of money--especially those who are greedy, they should consider at least finding other jobs as well *in addition* to their music career. Look at some of the acting careers many musicians have, for example!

After all, this IS a changing world and, as for most other non-musicians these days, people are changing careers more and more often. Considering that, if I was a musician and/or someone that produced material that can easily be freely distributed and copied all over the world, I would consider holding at least one second profession in addition to music.

Bottom line is this. Is it better to have a site like AllOfMP3.com continue running so that there is *some* money being made, OR take the site down and risk all of it?s former users getting into the habit of file sharing--thus increasing the amount of file sharing worldwide substantially?

Lee
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All russian alternatives to allofmp3
by velichk July 23, 2007 4:06 PM PDT
mp3sparks is analog of allofmp3, it has the same owner.
if for you allofmp3 is great than you can use it! But i know more russian mp3 stores than cheaper allofmp3 - check my hub http://hubpages.com/hub/russianmp3site...
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