One of RIAA's most hated, AllofMP3 has just had its credit card service with Visa International cut off over concerns with copyright issues. This is despite their continuous claim to operate legally under the Russian copyright law. According to a US trade representative, Susan Schwab, the continued operation of AllofMp3 not only shows a lack of respect for intellectual property law but also could run Russia into problems entering into the World Trade Organisation.

Generally, while AllofMP3 refuses to comment and has no telephone contacts, its director of the company's parent, Mediaservices, had a telephone interview with the International Herald Tribune through a translator and also chatted with 59 journalists. He maintained that the company runs 100% legally under Russian law and has been operating for 6 years without either a single conviction by any Russian court or being declared illegal. AllofMp3 claims to have 5 million users, increasing by around 5,000 a day and pays 15% of its revenue to a ROMS collecting agency, which claims to compensate the artists. However, despite this, large organisations representing artists and record companies still want the site shut down saying that both ROMS and AllofMP3 are illegally operated, since they claim it is illegal to distribute recordings without permission from the artists.

AllofMP3 recently announced that they are launching an ad-supported service to allow the free distribution of content, via a new software tool titled "Music for the Masses". However, unlike its existing pay-per-download service, its freely distributed music can only be played back on the PC the software is installed on and only through the software. This freely downloaded music cannot be transferred to a portable device without purchase. According to the company, they lose money through the current pay per download service and aim to make up for this by the funding they get from advertising revenues.