Russian music site Allofmp3.com has hit back at two music trade bodies saying the organisations were trying to discredit it.

It said the International Federation of the Phonographic Industry (IFPI) and the British Phonographic Industry (BPI) had made up “sensational news to attract public attention to their activity which becomes less and less valid every day".

A statement from Allofmp3 denied that a man who had been arrested for allegedly selling vouchers that allowed people to purchase music from Allofmp3.com was working for it.

It said: “During a night raid to a private apartment the British police had arrested an unidentified 25-year-old British man who, as the IFPI and BPI claim was selling vouchers for buying music from the Allofmp3 online store.

“The arrested Londoner was hastily declared an employee of the European office of Allofmp3."

“Allofmp3 administration reiterates that the store has never had any activities outside Russia. Thus we do not have any offices or employees abroad. Allofmp3 operates in full compliance with Russian legislation and pays the necessary royalties to the right holders and authors.”

The company has been under scrutiny from the BPI and police since 2006, after it was found that despite the site claiming to pay record companies and artists, no permission from record companies to sell downloads in the UK had been sought.

The company is also claimed to illegally undercut legitimate services such a s iTunes, Napster 2.0 and HMV Digital by not compensating the artists and record companies concerned.