Several recording companies have sued Russian site AllofMP3.com for copyright infringement. The site is not precisely a P2P sharing network, it is more analogous to “legal” download sites where users purchase individual songs and albums at amazingly low prizes. The problem is that the site does not pay royalties to the music industry.
I think that the copyright legal issues in this case are quite straightforward, even if one considers the quirks of Russian copyright law. It seems to me like AllofMP3 are engaged in direct commercial infringement of protected works. However, what may prove to be a very relevant piece of litigation is the fact that this case may prove to be one of jurisdiction and long-arm enforcement of IPR. This is because Mediaservices, the Russian company that owns AllofMP3, has been sued in New York. This is definitely a case worth following.
I never though I would say this, but I hope the music industry win this one. I must be growing soft in my old age.