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The New York Times reports that US trade negotiators have warned their Russian counterparts that the website could jeopardise Russia's 'long-sought' entry into the World Trade Organization.

The threat follows a concerted lobbying campaign by the music industry, which says that the site 'does not pay artists or

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copyright holders, so it is effectively stealing from those who create music'.

In February, an alliance of US copyright holders called for economic sanctions against Russia as a punishment for what it says is a 'piracy rate' in excess of 80 per cent.

Allofmp3 claims legality - at least in Russia - through a licensing deal with Russian Multimedia and Internet Society (ROMS) The major record labels' leading trade bodies insist it is illegal and has no licence to sell its cut-price and high-quality digital. ROMS has been expelled from International Confederation of Societies of Authors and Composers, the international royalty collecting societies' body, for issuing licences for music without the agreement of copyright holders.

ROMS' director general Oleg Nezus insisted that, 'Unless a court says otherwise, our actions are legal'.

The Moscow prosecutor's office is currently pursuing criminal action against Media Services, the owners of the website.