Reacting to the blow that came as two major credit card companies halted payment processing for its controversial music download store, Russia-based AllofMP3.com called the actions “arbitrary, capricious and discriminatory,” adding that it may seek legal recourse to reverse the decisions. The site sells albums for about $2 each, and claims to be legal under Russian law and hold a valid license from a Russian copyrights society. This week, both Visa and MasterCard ceased processing payments for the site. “Visa and MasterCard should immediately re-qualify AllofMP3,” said AllofMP3 director general Vadim Mamotin. “There is no valid reason and absolutely no legal basis for the action.” Record labels tried last year to compel Russian authorities to shut the site down, but prosecutors in Moscow declined to pursue the case. Recently, U.S. Trade Representative Susan Schwab said the site is a sign that Russia doesn’t respect intellectual property, and could affect the country’s accession to the World Trade Organization. “It is evident that Visa and MasterCard made the decision on factors other than legal grounds since the decision was not based on an adjudicated verdict by any court in the Russian Federation or, for that matter, anywhere in the world,” AllofMP3 said.

Links: http://www.prnewswire.co.uk/cgi/news/release?id=182003 http://www.ifpi.org/site-content/press/20061018.html http://www.allofmp3.com