The world’s most notorious virtual black market makes its home on an Internet server in Russia. Or so says the Office of the U.S. Trade Representative, which places the Russian music download Web site allofmp3.com atop its new list of the worst violators of intellectual property rights. Allofmp3 sells music below market rate—a little too far below market rate—at about 10 cents a song. And, according to the recording industry, it isn’t paying royalties, despite being one of the Internet’s largest music download sites. The site is considered so dangerous that it threatens to jeopardize Russia’s bid for membership in the World Trade Organization (WTO). “It’s the first time we’ve made a particular Web site a focus in our bilateral negotiations” for WTO membership, says Victoria Espinel, an assistant U.S. trade representative. Which means the folks at Allofmp3 may soon be singing a different tune.

Sally McGrane is a journalist based in Germany....