UK Record Industry Seeks Contempt Of Court Order Against CD Wow
The British recorded music industry is pursuing an order for contempt of court against one of the UK's biggest internet music retailers, CD Wow. Trade association, the BPI, is seeking fines, damages and costs in the High Court against the company.
The case relates to undertakings CD Wow made in January 2004 to the High Court that it would cease illegally importing CDs and music DVDs into the UK from south-east Asia.
Yesterday (February 19), counsel of CD Wow shareholder Philip Robinson confirmed that Mr Robinson accepted that CD WOW was in breach of its undertakings to the Court, and that Robinson bore some responsibility for failing to comply with the Court undertakings. Counsel for Robinson apologized on his behalf and confirmed that he had agreed to pay £50,000 to the music industry for costs incurred by the industry in bringing the case against him.
The CD WOW company has also now accepted that it has breached the undertakings that is gave to the Court, but argues that it should not have to pay a fine, damages or costs. The case against CD WOW therefore continues.
The BPI will produce evidence which it says shows that CD Wow has systematically broken undertakings embodied in a court order. The BPI alleges that despite previous court orders, CD Wow has continued to import CDs illegally and is 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.
* An order that CD Wow pay the UK record industry's costs.
With retail sales of £21.7m in the UK in 2005, CD Wow is Britain's third biggest online music retailer with a 23 percent share of the online CD album market.
BPI General Counsel Roz Groome said, "We believe CD Wow is guilty of flagrant and systematic breaches of a High Court order. The penalties for such breaches can be significant. 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."
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» UK Record Industry Seeks Contempt Of Court Order Against CD Wow