The Russian authorities have finally closed the AllofMP3.com, a site that was selling DRM-free MP3s for 20 to 30 cents. The site was considered controversial and it was sued by United States and UK music industry because it had no licensees, nor paying royalties to the artists.

In fact, AllofMP3.com was mentioned even by the US government as a barrier to Russia entering the World Trade Organization.

In response, MediaServices, the parent company of AllOfMP3.com, claimed they paid royalties to ROMS, the copyright holder service sanctioned by the Russian Parliament, and to FAIR (Rights holders Federation for Collective Copyright Management of Works Used Interactively).

But the music companies said the site had no rights to sell music and the RIAA and major music labels filed a lawsuit against the site in December 2006 and Visa International and MasterCard Inc. stopped accepting credit card transactions for purchases made at MediaServices' sites.  

"Allofmp3.com violated copyright law in Russia and internationally by ripping off artists and creators, taking music that it had no right to reproduce and selling it worldwide," said John Kennedy, president of the International Federation of the Phonographic Industries (IFPI). "If this is the end of allofmp3.com, this is good news."

Shortly after the Russian authorities closed AllOfMP3.com, Mediaservices launched a brand new site, called MP3sparks.com.

The MP3Sparks includes the same information, songs for sale, and explanations for why it is legal.

"The availability over the Internet of the ALLOFMP3.com materials is authorized by the license # LS-3?-05-03 of the Russian Multimedia and Internet Society (ROMS). In accordance to the licenses' terms Mediaservices pays license fees for all materials downloaded from the site," a notice reads. Still at the time of writing the new website is non-accessible.