updated 01:00 pm EDT, Wed August 15, 2007
AllofMP3 case thrown out
Denis Kvasov, former head of the Russian download site AllofMP3.com (now MP3Sparks), has escaped damages sought against him by the international music industry. The Associated Press writes that a Moscow judge threw the case out on Wednesday, observing that while the Russian government passed laws aimed at the site last September, Kvasov ended his association with the company in December of 2005.
The case was filed by EMI, the Warner Music Group and the Universal Music Group, who together asked for $587,000 from Kvasov. The labels accused the executive of selling their artists' music without permission, as well as reproducing it, the latter act indeed being illegal while Kvasov was in charge. Both arguments were rejected.
Two more cases involving AllofMP3 are waiting to proceed; one of these is against Vadim Mamotin, the current head of the site's parent company, Mediaservices. Mamotin defends AllofMP3, saying that since it paid royalties to a Russian licensing group, its operations were completely legitimate within the country. Record labels, however, claim that the group did not have their permission to collect or share any revenue.