EMI, NBC Universal and Time Warner took Denis Kvasov to court claiming that AllofMP3’s cheap prices breached copyright laws. AllofMP3 went offline July 2 following continued pressure from the US Government on Russia to shut the site, including an escalation of the dispute to the World Trade Organization. AllofMP3 was also the subject of a lawsuit filed in New York last December that attempted to claim damages of $1.65 trillion.
The judge found that the service was legal as it paid royalties to rights holders via ROMS, a Russian organization which collects and distributes fees for copyright holders.
AllofMP3’s holding company MediaServices continues to operate mp3sparks.com, a nearly identical service to AllofMP3 that offers downloads at significantly cheaper prices to mainstream Western online music retailers.
Previous TechCrunch coverage here.
(in part via CNN)