Before the shutdown, AllOfMP3 had around 6 million users who were able to download songs and albums for a tiny fraction of the price of authorized alternatives such as iTunes. The RIAA said it could not live with this situation.

In December 2006, the RIAA filed a complaint against the site, stating that AllofMP3 sold millions of tracks to the public yet gave no money back to their artists.

According to a report, on May 20th 2008 the RIAA filed papers in federal court, Manhattan, dropping its copyright infringement lawsuit against AllofMP3.

“The site is now defunct and out of business, the result of a successful anti-piracy initiative,” Jonathan Lamy, an RIAA spokesman told Bloomberg.

Notably, Lamy did not mention a fully operational site set up by the same people as AllofMP3, called Mp3Sparks. Different name, same tunes, no lawsuit.

AllofMP3 was blocked by a Swedish ISP back in 2006 when it got caught up in the anti-AllofMP3 hysteria but later retracted its stance.

In August 2007, AllofMP3 was acquitted in Russia of all charges that had been put forward by IFPI and on October 24th 2007, a district court in Moscow confirmed the innocent verdict.

“They [RIAA] never correctly commenced the proceeding in the first place,” said John Crossman, who represented the site’s owner, MediaServices LLC.

“Maybe it was a rare triumph of good sense.”

In the meantime, dozens of similar sites operate in Russia, delivering super-cheap music to the masses in much the same way as AllofMP3 did.

Victory for the RIAA? Not quite.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.