The accusations follow the news that the IFPI and British law enforcement raided the home of a 25-yr old London citizen who was selling vouchers to use on ALLofMP3 as payment. The IFPI claims the man then transferred that money to the Russian company's off shore bank accounts.
The parent company of AllofMP3, Mediaservices was forced to use voucher payments for North American and European customers, after the major credit card companies and Paypal refused to continue servicing the site. AllofMP3 is currently facing a $1.65 trillion USD lawsuit from US music publishers.
Mediaservices, in a statement, said the arrested man was not an employee of the company, and that he was merely "reselling gift certificates."
"The Allofmp3 administration reiterates that the store has never had any activities outside Russia. Thus we do not have any offices or employees abroad. Allofmp3 operates in full compliance with Russian legislation and pays the necessary royalties to the rightholders and authors," the statement reads.
"The members of the IFPI are unable to do anything about the natural crisis the music industry faces in the digital era. Instead they engage in unfair competition practices and political lobbying. They make up 'sensational' news to attract public attention to their activity which becomes less and less valid every day."
Mediaservices continued: "The IFPI and BPI turned a person reselling gift certificates into a 'European office of Allofmp3' in London. After that they initiated the loud 'closure' of this 'office' and an arrest of its mythical 'employee'. The young Londoner is a victim of music majors fighting the irreversible technological progress."
This latest statement can also be seen as a publicity stunt by Mediaservices, and its a wonder how the IFPI will respond.
Source:
BetaNews
Written by: Andre Yoskowitz @ 24 May 2007 13:52
