Russian based music downloading service AllofMP3 has defended it itself against allegations it is a pirate website.

Vadim Mamotin, director general of Mediaservices, which owns AllofMP3, said: "The company has been unfairly characterised as a pirate website. Nothing could be further from the truth."

The site offers chart music at prices far cheaper than rivals such as Apple's iTunes service.

They assert full royalties are paid to Russian music organisations.

Mr Mamotin claimed the major record companies had done this to "gain additional leverage before negotiating with us or ROMS".

However he did indicate Mediaservices was prepared to "deal directly with artists and record labels".

But the International Federation of the Phonographic Industry rejected this, saying neither Mediaservices nor ROMS had the authority to sell music or collect and distribute royalties.

Spokesman Adrian Strain said: "They haven't respected the rights of the rights holders and have exploited their works without asking permission."