ALLOFMP3.com Legal?

Catagory: music
ALLOFMP3.com is a very affordable music download site run out of Russia. They charge only $0.01 per megabyte downloaded and accept credit card or paypal. They have a massive catalog and some of the coolest features you'll find anywhere. My favorite feature (besides the price) is their Online Encoding (OE).

When selecting a song available through OE (which most of their catalog is), you'll be prompted to choose your desired format and quality level. Formats include MP3, OGG, WMA, and MPC. Recently they've added AAC (Apple's shite - .m4a) and one or more of the lossless formats (lossless is currently only available on a limited number of tracks). Personally, I like downloading in the MP3 format at 256Kbps using the LAME codec for standard listening. If I'm going to burn a CD from the downloaded music, I download in MP3 format using the 'insane' LAME codec quality setting.

Now, as great as I think this service is, I've always questioned the legality of it. They clearly state that they are legal, but I always wanted a better explaination as to why they're legal and how the Russian system works. I've done some research into their legality and found a little info, but today I came across something that cleared it up quite nicely. Reading this has firmly convinced me they are legal and should be for some time to come.



I pulled this comment from a thread at www.ipodlounge.com. This is perhaps the best description of how and why ALLOFMP3.com is legal. The thread has a few other good comments (including the thread opener) if you're interested.

[Source: http://www.ipodlounge.com/forums/archive/topic/20646-1.html]

Posted by: ronross

OK, here's the scoop on allofmp3.com. I have been a customer for over a year (before emusic went to a limited downloads model, I used them more.) I have never had a problem with credit card abuse: cyberplat, who handles the transactions, is a major player, along the lines of Verisign in the States, who have relationships with all the major credit card companies. Although you can use Pay Pal if you are really paranoid, there's no reason to, because Cyberplat does the same thing: allofmp3.com never sees your card info, just as when you buy something through Yahoo shopping or Amazon's outside vendors. You pay Cyberplat; they pay allofmp3.com. Payments are credited instantaneously, even if in the midst of downloading, and the site is remarkably stable and fast. Downloads average 1.5Mbs on a cable modem.

Regarding their encoding technology: they rip commercial CDs they claim to have purchased to 384Kbs vbr mp3. This is an unusual standard not supported by most players but it is as close to lossless as any lossless format can achieve, technically closer to a .wav file than even 320Kbs alt-preset-insane.

When you order your tracks, they are transcoded on the fly. While transcoding is normally a big no-no, the source files are so close to the original CD (iow, very few bits are thrown away) that their alt-preset-standard transcoded files sound just as good to me as those I rip from my own CDs using EAC and Dibrom's compile of LAME 3.90. Allofmp3.com has without a doubt the best sounding files of any online service.

Regarding legality: allofmp3.com has a license from the Russian performing arts society. It is the Russian counterpart of ASCAP or BMI in the US. ASCAP and BMI do *not* pay record companies or recording artists, per se. They pay songwriters and music publishing companies registered to them. Businesses that use recorded music for commercial purposes must pay for a license from either ASCAP or BMI (usually both) to broadcast on radio or tv, or to use a song in a commercial, or to play background music in an elevator or supermarket. When you hear the theme from the "Pink Panther" in an elevator, Muzak is paying Henry Mancini the songwriter and his publisher out of a pool that is then divided up among the "members" according to how many uses have been monitored. A top ten radio hit in the US will thus generate tens of thousands of dollars in income for the songwriter and publisher. However, the record company will not see a penny of that money.

In terms of income, CD royalties are the smallest revenue stream after song publishing, concerts, and merchandising. Lately, rights to use a recording in a movie or a commercial have also become significant sources of income. So when you think of allofmp3.com forget about recording companies. If Michael Jackson's publishing rep in Russia has given administration rights for public performances to the Russian society, then they have no say about whether or not the Beatles can be offered on allofmp3.com. Whomever distributes Beatles' CDs in Russia doesn't ever enter into it.

Allofmp3.com pays a fixed amount per year (for example) for the rights to music registered with the performing rights society. To keep the math simple, lets say allofmp3.com pays $1000 (or ruples) for its annual license. Further, Beatles downloads account for 10% of total downloads. Hence the Beatles and their publisher (in this case Michael Jackson), will be paid $100 from the pool of $1000. Depending on the terms on which the Beatles' catalog was sold to Michael Jackson, the Lennon estate and Paul McCartney would normally get $50 and Michael Jackson's company would also get $50.

What is unusual about allofmp3.com is that they have taken the basic performing rights business model that ASCAP and BMI have used uncontroversially for 60 years and applied the "broadcast" concept to downloaded recordings. This, of course, would never fly in the US and ASCAP and BMI wouldn't think of it. OTOH, I suspect that in Russia, the performing arts society has much more legal and political clout than do the local divisions/licensees of Universal, EMI, BMG, etc. They have seen a business opportunity for their members and apparently have the power to overrule the objections of the record companies.

So I am convinced that allofmp3.com is not only legal, legitimate and safe, but it is also the most cutting edge online service technologically. That said, re-distribution of the files obtained from allofmp3.com is definitely against US law (whether you burn a CD for your sister or offer them on Kazaa) and the site acknowledges this clearly.

Congress could also pass a law making it illegal to possess allofmp3.com files, as they have banning the import or possession of Cuban cigars, but they haven't yet and I doubt they will.

Now regarding the anti-Russian biases that always raise their ugly head in any discussion of allofmp3.com, it is true that a Wild West attitude prevails among their newly minted capitalists. But it is also true that Russia has many, many fine younger computer programmers who are often under-employed and would welcome turning their talents to a business that appeals to their love of music.

And finally, since Michael Jackson seems to be living off of the income from the Beatles' publishing catalog, rather than his CD royalties, if you find him to be morally despicable, you would do just as well to avoid buying "Let It Be Naked" to stake out your ethical position, as to avoid downloading Beatles' bootlegs from allofmp3.com where Paul McCartney also gets a few pennies from your purchase. Note, while it is illegal almost everywhere to distribute and sell an unauthorized recording, it is not illegal to own or broadcast one.

Allofmp3.com operates on a broadcast model not a CD sales model.

More info: http://3cx.org/item/24
posted Sun 07 Mar 14:04:50 PST 2004 by mikeg - permalink

Comments

icarus47 wrote:

I just started using allofmp3.com the other day. I too had the same doubts as to just how legal they really are. But, like you, reading this guy's comments has pretty much solidified it for me.

BTW, you have an interesting site here. I've been here a few times. You don't update very often, but when you do, it's normally worth reading. You should post more stuff. Ever think about having a few more people post stuff here?

Mon 08 Mar 10:27:50 PST 2004

mikeg wrote:

> You should post more stuff.

Yes. I should.

>Ever think about having a few more people post stuff here?

Actually, I have, but no one is really interested. I've given a few people accounts in past, but not one has ever posted anything (or should I say, anything acceptable).

I recently gave posting rights to a friend. He said he had some ideas and wanted to give it shot. As you can see, he's not yet posted anything. (Are you reading this Gaijinzilla?)

Mon 08 Mar 10:35:35 PST 2004

Gaijinzilla wrote:

Yeah Yeah I'm reading it. There will a post coming very shortly.

Tue 09 Mar 16:29:03 PST 2004

mikeg wrote:

It better be good. ;-)

Tue 09 Mar 17:14:42 PST 2004

jDaX wrote:

That's okay, I take only moderate offense to the "anything acceptable" comment. It was so long ago that I don't even remember what the post was referring to.

Wed 17 Mar 01:41:24 PST 2004

AC wrote:

your note about Yahoo shopping is wrong. If you purchase from a Yahoo Store, the store owners have access to your Credit card number and expiration date for a period of 3 months after the date of purchase.

Tue 08 Jun 02:58:02 PDT 2004

mikeg wrote:

> store owners have access to your Credit card number
> and expiration date for a period of 3 months after the
> date of purchase.

Thanks for the info. I've never used Yahoo Shopping. Perhaps ronross (the author from ipodlounge) is mistaken. I tried to find out if the Yahoo Shopping store owners do have the access you suggest, but google and yahoo turned up nothing and Yahoo Shopping's FAQ was worthless.

Mon 21 Jun 09:09:29 PDT 2004

ALLOFMP3 Legal wrote:

There is a good description of why ALLFOMP3 is legal--and even condoned by the RIAA at:
http://www.fadmine.com/allo...

Wed 13 Oct 22:29:45 PDT 2004

ME wrote:

It is NOT legal unless they have the rights for the music. I doubt if RIAA wants them to do this yet they have no jurisdiction of it. Do the artists EARN off of this? Do their publishers/companies EARN? Or are we all just ripping people off again? There are current laws being passed against these people. It is NOT legal to download music from an foreign source just because they don't follow the same copyright laws. They are stealing from the artists and from the rest of us.

Sat 11 Mar 08:22:45 PST 2006

Butcherjuj wrote:

C'mon, you think that at .01/meg, they're giving ANYTHING to the artists? Don't kid yourselves. It's like Napster and they're taking your money.
This is an opinion

Tue 14 Mar 23:00:58 PST 2006

J1nkst3r wrote:

Roll on AllOfMP3.com!

This pricing has prompted me to spend over $300 that I would not have otherwise spent! Music industry - TAKE NOTE! I'm not the only one saying this. It's not about legal or illegal, it's simpoly about pricing. Get your pricing right and we'll be buying. I had not bought for a long time before AllOfMP3 because I felt that I was being ripped off.

In the UK it's around £1 a track! Please, move with the times..

Fri 07 Jul 05:24:26 PDT 2006

johua wrote:

i use allofmp3 more than 2 years and spent with them $200. also i found http://www.lavamus.com they are cheap and accept paypal.

Sun 24 Sep 11:44:53 PDT 2006

gigahead wrote:

J1nkst3r says it best. I say the same -
I also bought about $300 worth of Allofmp3, and that’s money I would have never spent otherwise.
Buck a song! Get real. Those days are over. When music is reasonable, I will stop buying allofmp3 and support our starving artists.

Tue 12 Dec 10:49:00 PST 2006

tomo wrote:

I haven't spent $300 on music in 15 years until allofmp3. A CD is the same price as a movie? Give me a freaking break! How many songs on a movie!?! I'm tired as anyone of getting ripped off by the music industry and their "holier-than-thou" attitude.

Fri 29 Dec 16:17:13 PST 2006

luce wrote:

One thing I’d like to say to all of you folk submitting your comments here. When you go to work, do you expect your employer to pay you after your days work? Yes or No? How many of you give your services for free to your employers?

So why do think it any different for all the Musicians, Producers, Engineers who are involved in making music. Take the Record Companies out of the equation here, because the people who are really suffering are the individuals who are making music.

I find it incredible that people who claim to love music so despise the people who actually make it. The people at the sharp end of this are the new or smaller artists and the small people - not the big corporates because they just find other ways to get their pound of flesh. No the ONLY people actually suffering from the illegal music trade are the very people who you claim to love - the smaller indie labels and artists and the new acts/labels who don’t have much money. The cost of making an album is extortionate if you use real live musicians and top equipment/studios - which you all then appreciate when you listen to quality music. Do any of you realise the real cost of making an album? Have you even thought about it? The cost of buying a track legally is only about 79 pence (or 1 dollar). Compare this to a pint of lager or beer (approx 3 GBP in a London bar) or the price of a good meal out (say anywhere betweeen GBP20 and 50 per head). You can only drink it or eat it once and it’s easily made (sometimes for food just in a couple of hours that day by a couple of staff and the raw materials i.e. the food doesn’t even cost that much). Compare that to a song that can take months to write, record and produce and you get to keep it forever! That sounds like a pretty good deal to me! Believe me, regardless of what you think, it is the musicians who are getting really worn down by people who think that they should give their time and their talent for nothing. I personally don’t think any of you would give your services for free. I also don’t think that anyone who buys music illegally can actually truly be a fan of music. It’s rather like saying you appreciate art and then walking into the Louvre and nicking the Mona Lisa off the wall. It’s a purely selfish act and that’s it. As for people who are complete mugs, who do you think all your money is going to when you pay Allofmp3? I very much doubt the musicians see much - how can they since some are probably not even aware their tracks are even on it? I suspect the corporate guys that run it (cos they certainly aren't doing it for free are they now???!!!) are making more money than half the music industry people you so despise! The best way things can go is for artists/musicians to sell their music directly ONLY through their own websites - then you'd be truly be supporting the musicians. Then if you don't like it don't buy it. Write your own music if you think you can do better. After all no one's forcing it down your throats.

Tue 10 Jul 13:43:02 PDT 2007

velichk wrote:

The saga of Allofmp3 is quite well known at this point. The company that was apparently following the laws of Russia for licensing music made a name for itself selling DRM-free music at very reasonable points. But AllOfMp3 is not lost forever. They have setup at least half-a-dozen other sites all utilizing the same music catalog, accounting system and website, albeit with a different design in each case. i write wides articles http://hubpages.com/hub/rus... about 18 sites like allofmp3.

Sun 05 Aug 16:58:51 PDT 2007

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