As part of their claim, the labels are seeking $150,000 USD for each of the 11 million songs that were downloaded from June to October 2006 from the AllofMP3.com website.
Of course AllofMP3 does operate legally under Russian law:
As I previously reported, technically AllOfMP3 does obey the law-Russian law. It pays the standard 15% Russian licensing fee that applies to online music to ROM, the Russian Organization for Multimedia & digital systems. ROM is the Russian equivalent of the RIAA, and according to their website they are "...the national Russian organization providing professional collective management of authors property rights and protection of interests of rights holders in cases of use of their works in digital interactive networks, including the Internet." But, unfortunately for AllOfMP3 the RIAA doesn't recognize ROM's legitimacy, perhaps out of fear that it would help legitimize AllOfMP3 and erode their position against it.
All of MP3 replied:
An attempt by the major record labels to use a U.S. court to as part of its campaign against AllofMP3.com is imprudent.
AllofMP3 understands that several US record label companies filed a lawsuit against Mediaservices in New York. This suit is unjustified as AllofMP3.com does not operate in New York. Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3.com operates legally in Russia.
In the mean time, AllofMP3.com plans to continue to operate legally and comply with all Russian laws.
Some other Numbers:
GDP for Russia in 2005: $1.576 trillion
~ http://www.azoz.com/music/features/0008.htmlThe overall approximate retail value of the industry, when combining shipments of physical products to various outlets with the estimated value of various digital revenue streams, was $12.27 billion in 2005, compared to $12.34 billion in 2004 (note: the 2005 figures include some categories not collected in 2004, such as mobile, digital subscription, digital music video, and kiosks). The wholesale value equivalent of the music industry in 2005, when combining both digital and physical revenues, is $7.0 billion.
So, they are looking for more then the GDP of Russia, and more then 20x the wholesale value of the music industry annually. This is of course only June - October, a 5 month period.