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AllOfMP3

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File:Allofmp3.png
The AllOfMp3.com catalog user interface. "VIP" users are those who have paid for downloading a certain amount of data. This is referred to as a "traffic subscription", even though it is not a recurring charge.

AllOfMP3.com is an online music store based in Moscow, Russia which was founded in 2000 by [1] Mediaservices, Inc. It has a licensing agreement with the [2] Russian Organization for Multimedia and Digital Systems, similar to the agreements Russian radio stations have. AllofMP3 states that this agreement allows it to legally distribute music from all artists and all labels.

How the service works

Unlike some US-based music stores such as Apple's iTunes Music Store, AllOfMP3 charges for the volume of data downloaded, not for individual songs. As of August 13, 2006, the basic price for one gigabyte of music downloaded is $30.00 or 3 cents per megabyte, increased from the previous 2 cents per megabyte set on January 15, 2005. As a basis of comparison, a typical four-minute, 128 kbit/s song downloaded from the iTunes Music Store would cost 99 cents, whereas this same song at the same bitrate would cost 12 cents to download at AllofMP3.com. (This price is often reduced by a complicated system of discounts based on cumulative usage, promotions, and type of payment. These discounts can reduce the effective price of downloads by up to one third of the original cost.) AllofMP3.com has built a solid reputation for high-quality files and responsive customer service. If you do have a problem with any file downloaded, they immediately credit your account without question. The AllofMP3 website offers Russian and English user interfaces. All functions, except for the buying of songs and full length song previews, are available to unregistered users (and full length preview of songs is restricted to individuals who have spent a total of $50 or more on the website). Registration is free. The store maintains an account balance for each user (and starts off each user with a balance of 20 cents, which will let you buy up to 7 MB of songs). While a user's account has a positive balance, he or she can continue downloading music. To do so, the user selects the files for download from the store's catalog.

Currently, one typically funds a user account via Chronopay, a company in the Netherlands and vetted by Mastercard and Visa. After an outage in early 2006, the account can once again be funded by Xrost prepaid iCards which, although no longer purchasable through PayPal, can be bought with Ukash, a credit system within Europe whereby one purchases 'e-money' over the counter at PayPoint outlets or similar. In these two cases, no credit information is revealed to AllofMP3. In early 2006, the Xrost system went offline, with a message on its website stating that it was moving to a new server. At first, no alternate third party payment processor was available, requiring users to pay AllofMP3 directly. Now, however, it is possible for users to top up their accounts again via Xrost.

As of mid-2006, AllofMP3 has offered a UK-exclusive service where users can order albums via SMS.

File:AllTunes.JPG
The allTunes application.

A user can choose from a variety of audio codecs for audio files, including MP3, Ogg Vorbis and Musepack (MPC). Lossless audio codecs, such as FLAC, are also available for some albums. AllofMP3 encodes most music now straight from source with its Online Encoding Exclusive service, so gapless albums will provide gapless playback, unlike most other music services. There is no extra charge for using the Online Encoding Exclusive service. The user can set the codec parameters, including the desired bitrate, ensuring superior quality over other music download services such as iTunes and Napster. The audio files then added to the user's download list. In some cases, a user will have to wait until the files are encoded before they are available for retrieval. Once ready, they can then be downloaded using a web browser, the Microsoft Windows application allTunes (the look and feel of which is heavily based on iTunes), the older application AllofMP3 Explorer (which is available in a Mac version), a download manager, or command-line utilities like wget (the "My Downloads" list offers a "list of links" which can be written to a file and used as input for such tools). Simple download managers for other operating systems (Linux, BSD, etc.) are also available (see external links section at the bottom of this page). Download speeds vary but typically hover around 40-120 kilobytes per second on broadband connections.

The files are unrestricted, i.e. they do not contain digital rights management information, allowing unrestricted use between multiple computers and digital audio players, unlike most other music download services, which limit the use of the music you purchase and the platforms on which you may play it. The website also offers free, full album previews, streamed at a bitrate of 24 kilobits per second (roughly equivalent to analog telephone audio quality). These full song previews (only available to registered users who have paid a total of at least US$50) can double as a free online jukebox, albeit it at a low quality. Registered users who have spent less than $50 have access to 90 second samples, and unregistered users have access to 30 second samples.

Audio quality issues

AllOfMP3 has been criticized for its use of transcoding to deliver custom encoded files. Transcoding in audio involves the re-encoding of an already compressed file, and is known to diminish audio quality and introduce compression artifacts; files ordered under AllOfMP3.com's "Online Encoding" service are transcoded from 384 kbit/s MP3 to the format of the user's choice. Most listeners cannot hear the encoding artifacts, however some believe that the recompression artifacts can make the audio "grating."

For the last three years, nearly all new tracks to the service have been provided using an "Online Encoding Exclusive" service, which encodes from lossless or uncompressed formats, and whilst in the main this provides better quality audio, it has been found by some customers who have downloaded uncompressed files that some of the (supposedly) uncompressed files they have purchased have in fact been encoded from lossy sources. In some cases, comparisons to the original CDs have shown that the CDs themselves were recorded from lossy sources.

Legality

Legality in Russia

AllOfMp3 claims that it is completely legal in Russia and that it is licensed to sell the music found on its website. However, the legality of AllOfMp3 in Russia continues to be debated.

The following claim is made in the AllOfMp3 FAQ: The availability over the Internet of the ALLOFMP3.com materials is authorized by the license # LS-3М-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." However, the referenced law of the Russian Federation clearly states that organizations such as ROMS need the permission of the rights holders to manage their rights, though ROMS maintains that this is not the case.

Paragraph 2 of Article 45 (Organizations for the Collective Administration of Economic Rights) of that law reads as follows, in pertinent part: "The mandate for the collective administration of economic rights shall be entrusted either direct, by the owners of copyright or neighboring rights in written contracts, or under appropriate contracts with foreign organizations that administer equivalent rights." Paragraph 3 of the same article reads as follows, in pertinent part: "By virtue of the mandate received under paragraph 2 of this Article, the organization for the collective administration of economic rights shall grant users licenses for the use of the relevant works and subject matter of neighboring rights by appropriate means." And, according to Paragraph 2 of Article 47 (Obligations of Organizations for the Collective Administration of Economic Rights), "Owners of copyright or neighboring rights who have not mandated the organization to collect the remuneration provided for in Article 46(4) [...] shall be entitled to demand [...] that it exclude their works or subject matter of neighboring rights from the licenses that it grants users." However ROMS interprets Paragraph 2 of Article 45 as follows: Licenses given by ROMS "are given on behalf of all owners of copyright and related rights, including those who have not given their authority to the organization."

In an interview for Museekster.com, representatives of AllOfMp3.com addressed questions regarding the legality of the service. However some of the claims made in the interview seem to conflict with a plain reading of Article 45 of the applicable Russian law which makes it clear that the permission of the rights holders is required to distribute their works.

According to a report in The Register, a preliminary Moscow City Police investigation resulted in a February 8, 2005 recommendation that AllOfMp3 be prosecuted. The IFPI (International Federation of the Phonographic Industry) also filed a formal complaint on February 8, 2005. Confusion resulted when IFPI's Russian legal advisor, Vladimir Dragunov, opined in an interview with The Register that successful litigation against AllOfMp3 appeared unlikely and, in March 2005, the Moscow City Prosecutor's office decided that Russian copyright laws do not cover online distribution of creative works and refused to bring a criminal suit against AllOfMp3 because of the lack of corpus delicti, ruling that the copyright holders should file a civil suit instead. (The argument that Russian copyright laws do not cover online distribution of creative works will become moot on September 1, 2006 when amendments to the Russian law that explicitly refer to the online distribution of creative works go into effect and ROM has acknowledged this in a statement on its website. AllOfMp3 too has taken cognizance of these amendments in a statement posted on its website on June 6, 2006 which says that "The aim of AllofMP3.com is to agree with all rightholders on the prices and royalties amounts by September 1, 2006.") On May 3, 2006, the Moscow City Prosecutor's office reversed course and launched a criminal copyright case [3][4] against AllOfMP3 owner Denis Kvasov, opening with statements from IFPI, Universal, Warner Music and EMI.

Whether international visitors may purchase materials from AllOfMp3 is obviously dependent upon the laws of their own country. While AllOfMp3 does not prevent international visitors from purchasing materials, it does ask them to check their own laws before doing so.

Legality in the US

In the United States, at least some supporters of AllOfMP3 have pointed to exceptions in US copyright law, most notably 17 U.S.C. § 602(a)(2), which provides a personal use exception to the rule that importation of copyrighted items constitutes infringement. This exception allows only one copy at any one time. Id. A corresponding exception does not exist in § 602(b), however, which governs whether "importation" is prohibited. Under § 603, where importation is prohibited, the federal government may seize or forfeit prohibited items "in the same manner as property imported in violation of the customs revenue laws."

Whether downloading can be construed as importation may be an issue. Importation is defined as a form of distribution of copies and phonorecords (17 U.S.C. § 602(a)). It is questionable whether AllOfMP3.com falls into any of the 602(a) exceptions. See 17 U.S.C. § 602(a)(1)-(3). However, § 602(b), first sentence, makes clear that importation is prohibited where a copy or phonorecord was unlawfully made. In this case, unlawfully made may be seen as violating the right of reproduction (17 U.S.C. § 106(1)) or the right of distribution (17 U.S.C. § 106(3)) by creating a copy in a machine on an AllOfMP3.com network or in the downloader's computer. Whether it was unlawfully made under 602(b) may depend on the enforcability of the AllOfMP3.com contract which serves as a basis for alleging that rights are obtained from artists for uploaded works at the time of upload. Such contract could fail in light of strong U.S. policy to protect artists from contributory infringers. See MGM Studios, Inc. v. Grokster, Ltd. (04-0480), 545 U.S., 125 S. Ct. 2764 (2005) (noting the significance of underlying unpaid downloads which were infringing). Proponents argue that a statutory construction approach reveals that copies and phonorecords are merely tangible objects, and since downloads are not tangible they are not within 602. However, opponents may counter that this ignores the central rights of the copyright holder under 17 U.S.C. § 106, providing statutory rights to the copyright holder to reproduce and distribute the work.

Thus, even if not "importation" under 602, it will likely still infringe a right set forth in 17 U.S.C. § 106.

Note that the composition itself, which is embodied in the copy or phonorecord, is distinguishable from the copy or phonorecord, defined in part as "material objects." See 17 U.S.C. § 101 (defining phonorecords and copies). This "duality" between composition and sound recording of the composition is recognized in typical music business practice, where a licensee often needs to "clear" a popular song by not only clearing the composition, but the sound recording as well. Often, a compulsory mechanical license is drawn for the sound recording which embodies the composition. See 17 U.S.C. § 115. If this basis is recognized, a court may reject proponents' argument that 602(a) shields downloaders from infringement because importation is defined on the basis of copies or phonorecords, but not their respective underlying works, such as compositions.

Accordingly, viewing 17 U.S.C. § 602 in light of 17 U.S.C. § 106, if a digital file embodying copyrighted work is downloaded from AllOfMP3.com without authorization from the copyright holder, it would constitute infringement by the downloader of the exclusive rights of reproduction and/or distribution. Proponents of AllofMP3.com point out that there have been no rulings in U.S. courts to date regarding the specific legality of "purchasing" music from AllofMP3.com. However, in light of the above, opponents will likely point out that the lack of specific ruling as to whether AllOfMP3.com is safe, is unavailing as a basis to claim non-infringement.

Further, if infringement is found, certain statutory remedies may be appropriate. 17 U.S.C. § 501(a) provides, "Anyone who violates any of the exclusive rights of the copyright owner as provided by sections 106 through 122 or of the author as provided in section 106A (a), or who imports copies or phonorecords into the United States in violation of section 602, is an infringer of the copyright or right of the author, as the case may be." The DMCA also provides notice and takedown provisions, which may be applicable to service providers. 17 U.S.C. § 512. Possible monetary damages may invoked: anyone found to have infringed a copyrighted work may be liable for statutory damages up to $30,000 for each infringement. 17 U.S.C. § 504(c)(1). If willful infringement is found, up to $150,000. 17 U.S.C. § 504(c)(2). An injunction may be another appropriate remedy. See 17 U.S.C. § 502.

Legality in Canada

Section 45 of the Canadian Copyright Act [5] permits importation of up to two copies of a copyrighted work, for personal use, provided that the copyrighted work was made with the consent of the owner of the copyright in the country where it was made. Before the fall of the Liberal government on January 23, 2006, Bill C-60 [6], was before the House to amend the Canadian Copyright Act.

Legality in the UK

In June 2006, the British Phonographic Industry (BPI) announced they believed that British users of the site broke UK copyright laws, as revealed by the BBC.

However, upon further investigation by UK readers of the social news website digg.com, according to the Copyright, Designs and Patents Act 1988 (c. 48) - section 22:

"The copyright in a work is infringed by a person who, without the licence of the copyright owner, imports into the United Kingdom, otherwise than for his private and domestic use, an article which is, and which he knows or has reason to believe is, an infringing copy of the work."

The use of the phrase "otherwise than for his private and domestic use" implicitly appears to absolve consumers from copyright infringement if they are buying from allofmp3.com for their own use as opposed to reselling copies. However, this specific legal point pertaining to the allofmp3 service has yet to be tested in UK courts.

To further confuse the issue, Roz Groome, General Counsel for the BPI, stated to the Commons Select Committee that they do not intend to seek to prosecute UK consumers of the allofmp3 service. Despite media speculation that the BPI would move to take action against users of the website, Groome said, "We are going to seek a judgment not against the users of the site, but against the site itself."

On July 3, 2006, it was announced by the British Phonographic Industry that they had gained permission from the High Court to sue ALLOFMP3 for illegal distribution.[7]

Legality in Norway

According to authorities, the use of AllOfMP3.com is legal as long as the service does not break Russian law [8].

Legality in Denmark

There has been much discussion about whether or not it is legal for a Danish resident to buy copyrighted material from AllOfMp3.com. The music industry associated Antipiratgruppen (anti piracy group) claims that it is illegal on the grounds that Danish artists are not getting paid when their songs are bought from the service, but have not pointed to specific legislation demonstrating that it is illegal. This has caused citizens to ask authorities for an opinion. The Danish Ministry of Culture has stated that the legal status is unclear but that in any case a citizen can not be punished for buying songs from the service as long as he or she is in good faith. It further states that the fact that Antipiratgruppen claims that using the site to be illegal doesn't imply that one isn't in good faith since the matter is complex and has not been tested by the courts. For a period of time the ministry removed its link to Antipiratgruppens website due it making unproven claims about AllOfMp3.com on its website. The link has since been re-established. In July 2006 Antipiratgruppen took an unusual step in an attempt to stop the use of the service. It asked all Danish Internet Service Providers to shut down access to AllOfMp3.com and threatened to sue the ISPs that didn't comply with this request. All ISPs refused to comply and on July 13 Antipiratgruppen announced that it would file legislation against Tele2, one of the major providers of internet access in Denmark, to get an injuction forcing the company to block access to AllOfMp3.com.

On June 1, 2006, the New York Times reported[9] that US trade negotiators have warned Russia that the continued existence of AllOfMP3 could jeopardize Russia's entry into the World Trade Organization.

References

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