The idea to begin the project came after the freeware music compilation OpenMusic was released, which was an Ogg Vorbis-encoded compilation under a liberal license, distributed in a box with the ALT Linux Master 2.0. software. The compilation included compositions of such well-known Russian acts as Umka and Bronevik, Rada i Ternovnik, Maleriya, Jah Division, and others. Although the founders of the OpenMusic project parted, OpenMusic continued its existence with the support of Henry Sheppard and Alyona Lazareva. In 2004 after an internet discussion, Roman Smirnov and Valery Mifodovsky (members of EXIT project), Mikhail Bykov, and Alexander Prokudin decided to start the FREE!MUSIC project. In the beginning of December 2005, in cooperation with the ALT Linux and 1C companies, the first compilation of freeware music under the FREE!MUSIC declaration was released. Currently, the project is expanding to include bands mainly from the Commonwealth of Independent States giving their music to the project. Famous bands giving material to the project include EXIT project, Black Obelisk, Umka and Bronevik and Olive Mess.
The FREE!MUSIC declaration is a declaration under which the artists agree that the music they give to the website could be used by anybody for any purpose.