It begins.

I've always been fascinated with the Russian Mp3 sites. Through a combination Russian loopholes and lack of enforcement, they are able to transparently sell Mp3s at a much lower price than their American competitors. But not only do they sell Mp3s for low prices, but they also design websites and clients (especially Allofmp3.com) that rival or are perhaps superior to those that are RIAA approved. They demonstrate what can be done without restrictions, no DRM, different file types and qualities, longer (or full) previews, generous bonuses, and innovative pricing structures.

Now, a restriction free music world is frightening to artists and record companies. They lose control of what becomes of their work; they lose profit models; they lose their whole current infrastructure. An industrial revolution is fun for the consumers, but content owners aren't quite ready for radical change.

It is my understanding that the Russian Websites donate some of their profits to a pool for rights-holders, who could claim money for their works, but by doing so would legitimize the sale of their works. Thus, not much money (if any) goes to rights-holders from the Russian Sites and the music industry. The RIAA obviously isn't happy about their existence and with the new U.S. trade agreement with Russia, I find it hard to believe that these Russian Mp3 Sites will be able to continue to operate effectively, if it all, for the next couple years. The credit card companies have already made it harder to pay Allofmp3.com. You currently can only pay Allofmp3 by going through XROST, a third party. Yet, until then, it will be very interesting to follow the websites. There are at least 20 of them.