They pay a pittance to some collection agency and in return operate legally, not in violation of russian copyright law.

My brother has a small record label in Germany, he distributes some albums with exclusive DJ tracks. These albums are available on allofmp3 and he isn't happy about it. He knows that the artists receive nothing from that fictional russian collection agency.

If any download site ever was piracy, allofmp3 is. Their story sounds compelling, but it's a lie, plain and simple.