AllofMP3.com, already facing intense pressure from US trade negotiators and international credit card processors, is now the target of a US federal lawsuit. The major music labels filed suit Wednesday against AllofMP3 parent company Mediaservices, Inc. in a New York court.

A copy of the lawsuit seen by Ars Technica claims that AllofMP3's business "amounts to nothing more than a massive infringement of Plaintiffs' exclusive rights under the Copyright Act and New York law." The complaint also notes that "not surprisingly, that business model has proven to be a roaring success."

Ars Technica