By Jo Best, 21 February 2007 15:25
NEWS
Music industry trade body the BPI (British Phonographic Industry) is seeking a contempt of court order against e-tailer CD Wow, after the company was accused by the BPI of continuing 'grey imports' of CDs from abroad.
Philip Robinson, a former director of CD Wow, agreed to pay £50,000 towards court costs but didn't accept he was in breach of an earlier undertaking to the court, where it agreed to stop importing CDs from Asia not intended for resale in the UK.
However, the entertainment e-tailer is rejecting calls from the BPI for it to pay a fine, damages or costs.
The BPI is now seeking a finding that CD Wow is in contempt of Court; a fine payable to the crown by CD Wow; an order that CD Wow pay damages for breach of copyright; and an order that CD Wow pay the UK record industry's costs.
BPI general counsel Roz Groome said in a statement: "We believe CD Wow is guilty of flagrant and systematic breaches of a High Court order... Contrary to some reports this case is nothing to do with price. Plenty of retailers manage to sell CDs at competitive prices without breaking the law."
CD Wow denied it had intentionally used grey imports of CDs not intended for this country and any breaches were a result of human error.
CD Wow co-founder Henrik Wesslen said: "The current copyright laws are mad but that doesn't mean we don't stick to them. We have always acted transparently and where we have been pulled up on a small number of unintentional instances we are big enough to hold our hands up."
The etailer added it may face closure if it loses the battle with the BPI.
The legal wrangling between the two was initially concluded in 2004 when they reached an out-of-court settlement which saw pounds added to the price of CDs after CD Wow switched from sourcing its goods from Asia to Europe.
CD Wow suggested in emails to customers that the price rises were imposed on it, a claim the BPI refuted leading to an injunction preventing the CD seller from repeating the claims.
Comments
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1. Charles Wood
This really a disgusting ruling and the judge should be ashamed of themselves. What world trade and the EEC are suppossed to stand for is FREE TRADE. This brings down consumer prices and stops these large multi-national companies taking the piss the way they do by marking out borders in this way.
If you can buy it somewhere as a commercial item, it should be able to be sold ANYWHERE as such. that is the whole essence of free trade. The pruchaser has already paid for the copyright in the opriginal purchase...and that too should be subject to free trade consensus...how else does the consumer get a good deal?
This judgement is really bad news for people like me...and you!
2. anonymous
The BPI is showing off it's nicely toned muscles again
3. Sarah
Assuming the the CDs that are being imported by CD Wow are genuine except that they are produced for sale in another country, why should they not be allowed to import them?
Or are we not in a capitalist society with a free market?
This is just an attempt by the record companies to control the market in each country (and extort the public) rather than charge the same price across the world based upon exchange rates and their costs.
4. Simon
Crazy isn't it - a CD is a CD !
So you can take two CDs made in teh same factory but sold to two different continents. It's the same CD so what's the difference ?
Licencing & royalties ? Well if the one sold in Asia gets less royalties than the one sold in Europe, then what does that tell you about the honesty and integrity of the music industry ? If the artists/copyright holders get less money on the Asia version, then someone is being ripped off - and the guilty parties are the record companies.
5. Joe Whitehead
"CD Wow suggested in emails to customers that the price rises were imposed on it, a claim the BPI refuted leading to an injunction preventing the CD seller from repeating the claims."
It seems like that was a pretty accurate comment - BPI just didn't like to hear it said that way. It's not what they said, but how they said it, eh?
6. Enrico Suarve
Does anyone know of any ongoing campaigns or petitions to overturn the BPI's unconstitutional stanglehold over free trade?
I can see no fair reason at all why one particular industry should be allowed such exceptional laws in order to maintain themselves at the UK consumers expense
For instance in Australia they apparently have an exact opposite law to this which states that companies can NOT force consumers to pay more for imports in this manner
If anyone has details of a petition or similar could they post them here?