A new cold war of sorts is brewing in the online music industry. The Russian music store AllofMP3.com is planning to continue business as usual even as US lawsuits are pending.

The US music industry is claiming that AllofMP3.com is operating illegally. AllofMP3 claims that it is following all Russian laws.

AllofMP3 offers MP3 downloads that are free of DRM (Digital Rights Management) schemes that most US music download sites use. The company also charges much lower rates sometimes by as much as half or lower. For instance, we found Gwen Stefani’s “Wind It Up” for 42 cents on AllofMP3 versus 99 cents on iTunes (www.applie.com/itunes).

In a recent post on its blog AllofMP3 claimed that the court case against AllofMP3 was “imprudent.”

They continued:

“AllofMP3 understands that several US record label companies filed a lawsuit against Mediaservices in New York. This suit is unjustified as AllofMP3.com does not operate in New York. Certainly the labels are free to file any suit they wish, despite knowing full well that AllofMP3.com operates legally in Russia.”

It seems the RIAA is not taking this lying down. Russia has been attempting to joining the WTO (World Trade Organization) for over a decade. Supposedly, there is a deal in the works to shut down music sites that don’t comply with copyright laws. AllofMP3 is one of the sites in this category.