Record companies win £41m damages

 

Source - BBC News

 

 

Online retailer CD-Wow must pay £41m to British record companies after breaking a deal to stop selling illegally imported cheap albums in the UK.

The High Court in London ruled in March that the site's owners, Music Trading Online, were "in substantial breach" of a 2004 agreement to stop importing CDs.

 

It has now ordered Hong Kong-based CD-Wow to pay £37m plus interest to the British Phonographic Industry (BPI).

 

CD-Wow says it will fight the High Court judgement in the European courts.

 

"We are the little guys selling CDs to the UK market and they (the BPI) have picked on us for that reason," said chief executive Henrik Wesslen.

 

"Other bigger sites doing the same thing have been left alone."

 

"CD-Wow is no consumer champion," countered the BPI's chief executive, Geoff Taylor, who said the company had undermined "the legitimate businesses of UK retailers and record companies".

 

"The vibrancy of British music depends on a fair return on the investments that allow British talent to shine.

 

"This decision is an important step in ensuring that British music has a bright future."

 

The Entertainment Retailers' Association (Era), which represents companies like HMV, Fopp and Amazon, also welcomed the ruling.

 

"It is vital that all retailers compete on a level playing field," said director general Kim Bayley. "Illegal imports threaten that level playing field and threaten British jobs."

 

Frozen assets

 

With retail sales of £21.7m in the UK in 2005, CD-Wow was the third largest online music retailer in the UK after Amazon and Play.

 

The company denied deliberately breaking its 2004 court undertaking to stop buying CDs in places like Hong Kong and passing them on to consumers in the UK at discounted prices.

 

It put any breach of copyright down to human error, but the High Court rejected its argument.

 

The BPI, which represents the major record labels in the UK, said the ruling was a "significant legal victory" for the music industry.

 

It said it had already obtained a freezing order against CD-Wow, meaning that all of its assets and bank accounts are frozen.

 

'Brute force'

 

"The courts have lost patience," said BPI lawyer Roz Groome, who added the body would use the ruling to pursue other retailers which exploit parallel imports.

 

In a statement, CD-Wow said the British courts had set a "dangerous precedent".

 

"I fear what is happening is an attempt to use the combined brute force of the record industry to force the retailers and, in turn, our clients, to keep lining the pockets of the fat cat executives," said Mr Wesslen.

 

"It shouldn't matter whether we are buying from an official distributor in the UK, Europe or the Far East, what is important is that we are buying legitimate products from the record companies themselves."

 

The retailer has denied reports it will cease trading following the judgement, and has called for a full review of copyright law.

 

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In my view, this is pretty outrageous... The BPI has found some tame judge, put him in his pocket and basically bought them.... You'd be forgiven for thinking that CD Wow are actually selling us Pirated CDs or illegal copies... This is nonsense.. Everything I have ever bought from CD Wow is a LEGIT copy of an album... This is the reason why the BPI is dying on its arse, it fails to recognise the facts that we are living in a GLOBAL market, where people are demanding the rights to download or to buy online from wherever or whoever they choose.. The likes of CD Wow should actually be congratulated, because they force the high street chains to keep CD prices low... I have to ask just why these guys are being targeted when I can easily go onto Amazon UK and buy a CD from an online market based in the US for around a fiver....

 

Fukk this ruling and fukk the BPI, I will NEVER buy a CD from a UK record shop ever again..... They do not have the interests of the music lover or the consumer at heart and expect us to just roll over and take it when they rip us off.... <_< <_<

 

 

 

I have to ask just why these guys are being targeted when I can easily go onto Amazon UK and buy a CD from an online market based in the US for around a fiver....

 

I was thinking that too :)

It's sad as these days the record companies and producers (cough simon cowel) only give a dam about the profits they are making. -_-

In my view, this is pretty outrageous... The BPI has found some tame judge, put him in his pocket and basically bought them....You'd be forgiven for thinking that CD Wow are actually selling us Pirated CDs or illegal copies... This is nonsense..

 

I think this case might go back years and years as CD-wow was invented by Phillip Robinson who was the dude behind a budget record label called Tring International years and years ago and MW said that some $h!t went on between the BPI and Tring years ago, so maybe the BPI have been after Robinson's ass in revenge for ages??? Perhaps, i dont know about the case that went on as MW only briefly mentioned it.

 

Everything I have ever bought from CD Wow is a LEGIT copy of an album... This is the reason why the BPI is dying on its arse, it fails to recognise the facts that we are living in a GLOBAL market, where people are demanding the rights to download or to buy online from wherever or whoever they choose..

 

Think the BPI and the UK industry they rep are just being greedy. I like to buy for eg Now records from Denmark, from the USA and from Australia and if i was just limited to to UK &I reland stock would be $h!t.

 

The likes of CD Wow should actually be congratulated, because they force the high street chains to keep CD prices low...

 

also i think this is also due to the supermarkets selling cds like baked beans as a pile them high sell them cheap loss leader. if you get a mentality in your head that a Manic Street Preachers or a P!nk album is £3 your not gonna pay £10 for there stuff unless it comes with something v speacial

 

 

Fukk this ruling and fukk the BPI, I will NEVER buy a CD from a UK record shop ever again..... They do not have the interests of the music lover or the consumer at heart and expect us to just roll over and take it when they rip us off.... <_< <_<

 

well maybe NEVER buy a CD from a major chain or supermarket. there was an opinion on teletext about a dudes fave indie record shop going out of business. the dude was saying its going out of business as the major record companies wont sell the shop the record 1 copy at a good dealer price, they have to take loads of stock of that album if they want to get a deal over the dealer price that will let them compete at a price thats favable to people like hmv and virgin.

 

 

It's sad as these days the record companies and producers (cough simon cowel) only give a dam about the profits they are making. -_-

Exactly! Which is exactly why if I had a band if I was to have a record deal at all I would only say yes to Domino who just care about the music which has also resulted in high sales for their bands anyway. :lol:

 

They're also doing exactly what happened in 1997 and milking whatever they can out of brit pop by pushing all the bands that sound the same to make money thus they're basically killing it <_<

Take Pop Idol/X-Factor for example,

First single, bit hit. Second single, flop, then the producers go, alright your not making no money, we're getting rid of you.

 

Im sure any other company would work with the artist and help promote him/her more.

Take Pop Idol/X-Factor for example,

First single, bit hit. Second single, flop, then the producers go, alright your not making no money, we're getting rid of you.

 

Im sure any other company would work with the artist and help promote him/her more.

 

 

Essentially you are right

 

Yes record labels need to make a profit etc but there is so much short termism in the music industry and just ditching an artist because they don't sell as many in their 3rd single or whatever makes no sense, work with them, promote them thats what they should be doing, most artists are treated no better than cattle

Take Pop Idol/X-Factor for example,

First single, bit hit. Second single, flop, then the producers go, alright your not making no money, we're getting rid of you.

 

Im sure any other company would work with the artist and help promote him/her more.

 

this is just the mentality of the entertainment industry at large, same with film franchizes and also tv shows. esp with American tv shows if they dont get the reach dont get the auds they are cancelled there and then

Take Pop Idol/X-Factor for example,

First single, bit hit. Second single, flop, then the producers go, alright your not making no money, we're getting rid of you.

 

Im sure any other company would work with the artist and help promote him/her more.

 

 

this is just the mentality of the entertainment industry at large, same with film franchizes and also tv shows. esp with American tv shows if they dont get the reach dont get the auds they are cancelled there and then

 

Isn't our consumer driven society to blame a little as well though? we always want to upgrade and move on to the next "big thing" as quickly as possible, be it music, games, electrical goods, cars etc, even everyday products like soap powder and tioletries are forever being discarded and being changed for "the better", to sell more.

even everyday products like soap powder and tioletries are forever being discarded and being changed for "the better", to sell more.

 

so do you hhave one of those Japanese technotoilets at you place then :lol: :lol:

Isn't our consumer driven society to blame a little as well though? we always want to upgrade and move on to the next "big thing" as quickly as possible, be it music, games, electrical goods, cars etc, even everyday products like soap powder and tioletries are forever being discarded and being changed for "the better", to sell more.

 

In a way you are correct, but in relation to music and the Internet, I can only see the availability of music to download as being entirely positive tbh... The artist or band can now effectively bypass the Record company and sell direct to the audience, utilise tools such as MySpace, YouTube, etc to "spread the word".. I think the Net is potentially a very empowering thing for a young, struggling artist...

 

In a way you are correct, but in relation to music and the Internet, I can only see the availability of music to download as being entirely positive tbh... The artist or band can now effectively bypass the Record company and sell direct to the audience, utilise tools such as MySpace, YouTube, etc to "spread the word".. I think the Net is potentially a very empowering thing for a young, struggling artist...

 

Then again the case might be that there is so many struggling artists out there on these sites that they still need to jump into bed with SonyBMG as most people are just sheep who will just download what they heard 92 million times a day on 'independent' local commercial radio. maybe its only really helping old fanbase people like marillion and the alarm :lol:

CD Wow blames woes on warehouse fire

05 June 2007 - 12:43:52

Source: Music Week

 

 

CD Wow has sent an email to its customers blaming recent problems with its service on a fire in its Chinese warehouse and offering a £1 voucher to all clients.

 

However, the email makes no mention of the CD Wow’s recent legal battle with the BPI for parallel importing, in which the BPI won £41m in damages against the online retailer. Nor does it mention the fact that the BPI obtained a temporary freezing injunction against CD Wow, preventing it from fulfilling orders made after the injunction was granted.

 

This has now been lifted, after the company signed undertakings that it would trade legally.

 

“Dear Member,” the email reads. “We would like to thank you warmly for your continued support after a difficult week. Sadly there was a serious fire above our warehouse last week.”

 

“We are pleased to say everything is now back up and running as usual,” the email continues. “So with you being a loyal member person, we want to reward thee with a cheer-worthy £1.00 voucher! Spend at your leisure as you save on Chart CDs, DVDs & Games.”

 

The email includes a link to a Chinese newsite's report on the fire.