The head of the Chamber of Commerce of Russia stated that in order to enter WTO the country had to close “pirate” e-shop AllOfMP3.com which “is robbing American sound-recording companies”. According to the representative of the American Chamber of Commerce Susan Schwab, Russia cannot become a WTO member as long as it hosts an internet-site outwardly ignoring the legislation on intellectual property.

According to a research of music market of Great Britain conducted by XTN Data in April 2006, a Russian site AllofMP3.com is second only to iTunes by volume of its sales. From January, 2006 the site has begun signing direct contracts with copyright holders and the authors of music pieces, raising costs its services and transferring emoluments directly to the authors and recording studios. Still, specialists regard the site to be legal only according to Russian legislation.

In September, 2006 the amendments into the law “On the copyright and related rights” of July, 9 1993 were adopted. The amended law rendered it possible not to sign a contract with copyright holder (i.e. with a musician or sound-recording studio) while transmitting music files via Internet, but rather merely assign part of one’s income to the organisation on collective management of copyright.

International Federation of the Phonographic Industry (IFPI), representing Western record labels (Sony BMG, Universal, Warner Music, EMI etc.) filed an availing law suit against AllodMP3.com. In April 2006 the site was mentioned among the barriers preventing Russia from entering WTO. In June Assistant U.S. Trade Representative for Intellectual Property Victoria Espinel even stated that closing down of AllofMP3.com is a key condition for Russia to enter WTO.

The articles amended were article 16 (property rights), article 37 (performer’s rights), and article 38 (rights of phonogram producers), granting the letter exclusive rights to distribute music recordings in the Internet. The fourth amendment touches upon article 39 (performing a phonogram, posted to be commercially exploited without the consent of the performer and phonogram producer), whose scope was broadened to include “informing public interactively from any place”.

The amendments into legislation have come into force. From now on it is possible to close down the sites trading in mp3 in breach of copyright. The only things which remain dim is how one can check the presence of a contract and what is procedure of closing down of those sites whose owners stay abroad or are plain figure-heads.