Back in 2005, following a criminal investigation of the site Allofmp3.com in Russia, officials
declined to press charges, noting that the site did appear to be operating legally under existing Russian laws. That, of course, set off a string of events, including having the US
pressure Russia to change its laws or risk
being kept out of the WTO. Eventually, Russia
did change some laws and
forced Allofmp3.com to shut down, though it quickly popped up again under another name. It didn't take long for the big record labels to then
push for the criminal prosecution of the site's owner, when all he had really done was help demonstrate a business model for selling music that seemed to be working well (i.e., price it reasonably and don't restrict it with DRM). Also, he
tried to pay royalties to the RIAA, but they wouldn't accept them. Luckily for Allofmp3, it didn't take long for a court to see through the recording industry's arguments and
throw out the case, pointing out (once again), that the site didn't break any Russian laws, while also noting that the record labels did an awful job presenting any real evidence of copyright infringement on the part of Allofmp3.