Feeds

BPI seeks damages from CD WOW!

'Flagrant and systematic breach'

Choosing a cloud hosting partner with confidence

The British recording industry has taken online retailer CD WOW! to court, claiming that the company is breaking a previous court-ordered undertaking not to sell cheap CDs imported from Asia.

CD WOW! agreed in 2004 to stop selling CDs in the UK which were imported from south east Asia. Though the CDs were genuine, their sale in a market for which they were not intended broke trade mark laws. The practice is known as 'parallel importing'.

CD WOW! shareholder Philip Robinson's lawyers admitted in court that the company had breached the undertakings it made to the High Court in 2004 and said that it would pay £50,000 in costs to BPI but believed that it was not liable for fines or damages.

The BPI said in court that it had made test purchases of albums from CD WOW! and found that discs such as Robbie Williams' Greatest Hits and the Live Aid DVD were being despatched from Hong Kong.

"We believe CD WOW! is guilty of flagrant and systematic breaches of a High Court order," said Roz Groome, BPI's general counsel. "The penalties for such breaches can be significant."

Richard Spearman QC, representing the record companies, said in court that the company had long worried the record companies.

"The CD WOW! business has at all material times been a very substantial concern," he said. "As at 2002 it was supplying some 10,000 units per day to the UK market."

The BPI says that CD WOW! sold £21.7m worth of music in the UK in 2005, and that it is the third biggest online music retailer with 23 per cent market share.

The BPI sought a court order that CD WOW! is in contempt of court and a fine, as well as damages for breach of copyright to record labels and the full cost of the BPI case.

The case rests on the licences involved in the Hong Kong-sourced CDs and DVDs. The licences permit the sale of those discs only in the Hong Kong market. The UK arms of the record labels hold exclusive licences for sale of the material in the UK and claim that the Asian discs breach their copyright.

The judge in the case has reserved judgment to a later date.

Copyright © 2007, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?