BPI Heralds Victory Against CD Wow

by Robin Pilgrim, LawAndTax-News.com, London

30 May 2007

The British music industry trade association, the BPI, announced on Tuesday that the UK record industry has been awarded a substantial sum in damages against internet retailer CD Wow.

The BPI has, for several years, been involved in a dispute with Hong Kong-based CD Wow, which admitted in the High Court 33 breaches of copyright law, in contravention of a previous undertaking to the UK courts, but claimed earlier this year that the offences in question were merely the result of 'human error'.

The Hong Kong based business had been illegally importing CDs and music DVDs into the UK from outside the EEA.

Commenting this week on the granting of the largest damages award ever made in favour of the BPI, Chief Executive Geoff Taylor explained that:

"CD Wow has been undermining the legitimate businesses of UK retailers and record companies by continuing to import CDs and music DVDs illegally from Asia, despite having given court undertakings that it would stop doing so."

He continued:

"Illegal imports of this kind undermine the huge investments made by businesses here in homegrown musical talent. This ruling illustrates the lengths that the rogue retailer went to flout the law and maximise its profits at the expense of British musicians and record companies supporting them."

"CD Wow is no consumer champion; it is a rogue trader that now has to face the consequences of its actions."

The scale of the damages awarded, at over GBP41 million, is expected to serve as a major deterrent to any would-be illegal importers.

The BPI has already begun taking steps to enforce the damages award, having obtained a freezing order on the retailer's Hong Kong bank accounts and assets. It is recognised that enforcement of the award will be time-consuming and complex, given that the company's assets are located in a number of jurisdictions.

BPI General Counsel Roz Groome, who spearheaded the industry's six-year case, concluded:

"CD Wow have consistently broken the law, ignored High Court rulings, and have continued to trade illegally throughout."

"Clearly the courts have lost patience with this rogue retailer and the message is clear; any company seeking to engage in this type of illegal trade will face the toughest sanctions."

"The BPI will use this landmark ruling to take firm action against any other retailers that import illegally."

Recommended