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23 Oct 2006
Controversial Russian MP3 site, AllofMP3.com, along with its hosting firm, Mediaservices, has hit back at the credit card companies that banned it from making sales last week.
Visa International and MasterCard International suspended payment functions for MP3 sales via the site over concerns about the legality of the operation. AllofMP3.com typically charges around 15 cents for a three-minute song and $2 or less for a whole CD and was claiming legality under Russian law.
But the MP3 seller has hit back at the accusations, claiming that “the action taken by the world's largest payment processors is arbitrary, capricious and discriminatory because Visa and MasterCard lack the authority to adjudicate the legality of AllofMP3's activities and its determination that the company's activities were illegal is patently erroneous and without legal merit.
“AllofMP3 has not been found by any court in the world to be in violation of any law,” the company said.
The AllofMP3 operation is becoming a major bone of contention between the US and Russia in negotiations to secure Russia a place in the World Trade Organisation.
“Visa and MasterCard should immediately re-qualify AllofMP3," said Vadim Mamotin, director general at the company. "There is no valid reason and absolutely no legal basis for the action."
Mamotin claims that Visa and MasterCard made the decision on factors other than legal grounds “since the decision was not based on an adjudicated verdict by any court in the Russian Federation or, for that matter, anywhere in the world.”
AllofMP3 said it will pursue every course of action, including legal options, to reverse Visa's and MasterCard's decision.
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Comment: AllOfMP3 Hits Back
Dear VNUNet, What Visa and MC has done has gone a little too far! I use allofmp3.com all the time and, in all honesty, I think it?s an awesome site! So far, the best part about AllOfMP3 is that, due to the fact it contains far more artists and albums than most other music sites, it has introduced me to some of the most interesting artists and music (from around the world) I?ve ever heard of--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
Posted by: Lee 27 Oct 2006