Russian Judge Throws Out Allofmp3.com Case

A Russian judge has dismissed a royalty case by Western music companies against the discount download service Allofmp3.com.

Denis Kvasov, a former owner of the Russian music download site Allofmp3.com, has been acquitted of copyright charges.   A Moscow court ruled that Kvasov and the site operated within Russianlaw.   Allofmp3.com sold cheap-price downloads of Western music until it was closed in June, under pressure from Western music firms, and it’s been a persistent problem in US-Russia talksat the World Trade Organization.   Allofmp3.com is owned by Kvasov’s Mediaservices. Until the site closed, it sold tracks and albums for a fraction ofWestern services (tracks as low as 10 cents, albums for $1), but  Kvasov insisted that the company paid royalties to the Russian Multimedia and Internet Society (Roms). The prosecution came about, in part, because many Westerncompanies don’t recognize Roms and refused to accept its payment terms.   The company was even specifically named in WTO trade talks with Russia, which resulted in legislation regardingweb site regulation in Russia in 2006.   Universal, EMI and the Warner Music Group had pressed for the prosecution of Allofmp3.com, but the case was thrown out yesterday by District JudgeYekaterina Sharapova “The prosecution did not succeed in presenting persuasive evidence of his involvement in infringing copyright law,” she said.   The head of Russia’s anti-piracyorganization, Konstantin Zemchenkov, said the court’s verdict set a “very bad precedent.”   Although Allofmp3.com closed its doors in June, another discount download site immediatelysprang up in its place.