Jazzeast

The association of American label companies, including Warner Brothers, Sony BMG, UMG and Capitol, claimed that allofmp3.com sold albums and songs without permissions. This move, which needs legal actions, was then followed by the British music industry.

Operating outside of Russia, allofmp3.com was owned by MediaServices. The site claimed that they are paying a Russian licencing group, which in turn places it within the scope of the Russian law. However, the label groups said that the mentioned licencing group has no rights to distribute and collect payment.

On the other hand, allofmp3.com is well-known around the world for offering albums not more than £2 and songs for a few pennies.

According to a lawsuit that was filed at the Federal Court of New York, the site has approximately 5.5 million subscribers worldwide. It is also thought to account about 14% of the overall downloads in Britain. The site also offers albums including those that are unavailable on other sites, such as albums from the Beatles and Led Zeppelin.

Matt Phillips of the British Phonographic Industry (BPI) also said that: “This service is illegal. The prices are so low because the service does not pay the artist or the record company concerned”.

However, speakers from the site itself said that it "regularly transfers substantial amounts of royalties" to the Russian copyright associations, and it does not advertise of operating outside of Russia. The website stated: "The administration of allofmp3.com is not responsible for the actions of foreign users".