AllofMP3 unfazed by RIAA lawsuit

— 1:22 PM on January 2, 2007

A few days before Christmas last month, AllofMP3 was hit with a lawsuit by none other than the Recording Industry Association of America. The RIAA alleged that record labels weren't seeing a dime from the Russian music download service, and that AllofMP3's operations amounted to nothing more than mass copyright infringement. AllofMP3 has now responded to the lawsuit with a statement, and the company apparently plans to continue business as usual:

"AllofMP3 understands that several U.S. record label companies filed a lawsuit against Media Services in New York," an unnamed "senior company official" stated. "This suit is unjustified as AllofMP3 does not operate in New York. Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3 operates legally in Russia. In the mean time, AllofMP3 plans to continue to operate legally and comply with all Russian laws."
AllofMP3's stance is interesting considering the extent of the threat: the RIAA is demanding $150,000 in damages for each one of the 11 million songs it says AllofMP3 has sold. That adds up to $1.65 trillion—more than twice the GDP of Russia.
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