MP3 site's voucher system closes

The site allofmp3.com claims it is licensed to sell music

An online voucher system which allowed customers to buy music from the Russian website allofmp3.com has been closed following a police raid in London.

Earlier this month police swooped on an address in Bow and arrested a 25-year-old man on suspicion of fraud.

He was later released pending further inquiries. It is not known if he is linked to the owners of allofmp3.com.

The worldwide music industry says the site, which offers downloads for around $1 (50p), is operating illegally.

Before it closed, allofmp3vouchers.co.uk contained a code that allowed UK and European consumers to access and download music from allofmp3.com.

Online payment companies and major credit card companies such as Visa and MasterCard have withdrawn their payment facilities from allofmp3.com following complaints from the music industry.

Allofmp3.com's parent company, Mediaservices, has said it is licensed to sell music. It says it pays royalties to a Russian licensing body, but the BPI (British Phonographic Industry), which represents UK record firms, says it is not authorised to accept payments.

BPI chief executive Geoff Taylor said: "British music fans should be aware of voucher schemes like this one that seek to prop up an illegal service that rips off artists."

John Kennedy, chairman of the global record industry's IFPI group, said: "The action announced today is the latest to highlight allofmp3.com's long and undistinguished history of stealing music from artists, composers and record producers and selling it at a profit."

Mediaservices was not available for comment.