Russia has acquitted Allofmp3.com operator Denis Kvasov from all copyright offenses, stating the site operated within the bounds of Russian law, reports BBC News.

The site sold mp3s at cut-rate prices. Albums went for around $1 while individual tracks were sold for $.10.

The trial began after US record labels pressed for Kvasov's prosecution, yet concluded the site followed Russian law since Allofmp3.com paid royalties to the Russian Multimedia and Internet Society.

Online piracy has been a major sticking point especially between the US and Russia, particularly as Russia seeks to join the World Trade Organization. While Russia promptly gave in to demands and shut down Allofmp3.com at outset, another eerily similar site went up shortly afterwards.

The head of Russia's anti-piracy organization, Konstantin Zemchenkov, said the court's verdict set a "very bad precedent."