Court Enjoins Colorado Ecommerce Reporting Law

Last year Colorado passed a law requiring retailers who do not collect Colorado sales and use taxes to–

  1. “notify Colorado customers that the customer is required to pay use tax on the purchase;
  2. send an annual statement to each Colorado customer, summarizing the customer’s total annual purchases from the e-tailer; and
  3. file an annual information report with the Colorado Department of Revenue showing the total amount of sales made to each customer in Colorado.”

Colorado could then use this information to monitor residents’ compliance with state laws requiring reporting and payment of use taxes. ¬†E-Commerce Times reports that the Direct Marketing Association challenged the sale on the grounds that it discriminates against out-of-state retailers and burdens interstate commerce. ¬†Last month a federal court in Denver issued a preliminary injunction preventing the state from enforcing the law until its validity can be determined at trial.

AllofMP3.com Lives Yet

Despite a US-Russian trade agreement in which Russia agreed to close legal-in-its-own mind AllofMP3.com (see prior post), the pesky Russian site continues to operate, bearing an enthusiastic “Merry Christmas and Happy New Year!” and running a Christmas sale. Apparently tired by the trade agreement’s failure to eliminate the site, the New York Times reported today that various recording companies filed a federal court lawsuit in Manhattan seeking an injunction to force AllofMP3.com’s closure. The lawsuit argues that the site’s “claims of legitimacy” make it more problematic than unabashedly illicit sites. AllofMP3.com states it sells music pursuant to legitimate Russian licenses, but ROMS, the Russian licensing site on which AllofMP3.com pins its copyright virtue, was expelled from an international royalty-collection association “for issuing licenses without authorization from copyright holders.”