AllofMP3 may offer something similar to iTunes-iPod -- but free and ad-supported, their U.S. spokesman told us. The controversial Russian download store, accused by labels of not paying royalties to any recognized body, snatched the idea from Universal's deal with nascent ad-supported download service SpiralFrog (WID Aug 30 p7), he said. AllofMP3 would keep its cut-rate download service, creating a parallel service with "severe restrictions" on downloaded music -- compatibility with a single portable player to be developed, no transfer to other PCs or portable players and no burning. The spokesman didn't know if AllofMP3 was floating the idea to pacify labels and smooth the way for direct royalty talks.

Now in the midst of an international PR blitz (WID Oct 18 p1), AllofMP3 recently was cut off by Visa when a new Russian copyright law took effect, a Visa spokesman told us: "They're not in line with legislation passed in Russia and with basic international copyright law." Visa "can't act as a law enforcement agency" but requires acquiring banks to police merchant compliance with applicable laws. First passed in 1993, Russia's Law on Copyright & Neighboring Rights was amended in 2004 with Internet-specific changes that took effect Sept. 1, the spokesman said. Visa proactively denies acceptance rights for certain commercial activities, such as trade in child porn, which it's pledged with other payment providers to cut off by 2008 (WID March 16 p2). If legally questionable sites come to Visa's notice, it will investigate, but "this is the only one that I've heard about" for copyright infringement allegations, the spokesman said: "This is viewed as a pretty high-profile one."