Russian Intellectual Property: MP3 site as a first test?

A few weeks ago, we commented on the Russian Parliament's approval of new intellectual property laws. Our comment was somewhat sceptical, given the lack of legal tradition of IP enforcement in Russia. As the scepticism seemed quite widely shared, it was only a matter of time before those who lobbied for better IP protection would test the new framework.

Sure enough, the US authorities, who have been intensively lobbying Russian on the issue, decided to press their case anew. They took the opportunity of on-going discussions about Russia's joining the WTO to raise the matter and remind the Russians that proper IP enforcement is a key WTO requirement.

What is interesting is the specific topic raised.  US Trade Representative Susan Schweb did not raise the issue of patent violations in pharmaceutical industry or other industries and only mentioned in passing the widespread illegal counterfeiting of US products. She zeroed in on a MP3 site, allofmp3.com, which was identified as a poster child for pirated music over the Internet. This focus is interesting for two reasons:

- It highlights the political weigh of the recording music/motion picture lobby, which managed to put the issue of pirated music and videos on the top of the policy agenda. This reflects not only the political skill of Hollywood lobbyists but also the economic importance of the sector, which constitute an essential source of export earnings.

- Allofmp3 and similar sites are not your typical pirated music sites. They are not peer-to-peer (no exchange of files between members) and they are not free. They accept credit card payments. But the cost of downloading from the site is very low (few cents per song or even per album). And, according to the US organisation, the main reason is that they do not pay record companies and artists proper licensing rights. Yet, allofmp3 posts a legal notice on its site, claiming that it is in full compliance with the Russian copyright legislation. It also adds a disclaimer that: "The Administration of AllOFMP3.com does not possess information on the laws of each particular country and is not responsible for the actions of foreign users."

So far, despite public flogging by the US administration, allofmp3.com remains open, and operational, suggesting that the new IP law leaves Russian authorities wide latitude of interpretation.