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In a statement the administrators of the Russian website said that it operated in full compliance with the country's laws

'The site Allofmp3.com belongs to a Russian company and for six years it has operated within the country. Throughout this period the various government offices have scrutinized site's legality and have not found any breach of the law,' the statement says. 'So far there has been no decision by any Russian court contesting the site's legality.'

They claim that they regularly transfer 'substantial amounts' of royalties to the Russian organisations that have granted the site licences to sell music over the

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Internet.

'Since January 2006 the site has been making direct agreements with rightholders [sic] and authors at the same time increasing the price of the music compositions and transferring the royalties directly to the artists and record companies, the statement reads. 'The aim of Allofmp3.com is to agree with all rightholders on the prices and royalties amounts by September 1, 2006.

'We believe in the long term and civilized business based on respecting the law, considering the customers' demands as well as the interests of both national and international rightholders,' it says.

The IFPI, an international music industry organisation, insists that none of the royalties from the site reach artists and that downloading from Allofmp3.com is illegal in most countries.

Allofmp3 says that it is not operating or advertising its business on the territory of other countries. The website warns that users are 'not able to download audio and video...if is in conflict with the laws of your country of residence', although it takes no steps to prevent this.

The BPI, which represent UK record companies, announced yesterday that it is to take legal action against Allofmp3.com.