Music
Internet CD retailer CD-Wow has been ordered to pay £41 million to the British Phonographic Industry for selling illegally imported cheap albums.
The High Court ruled in March that Music Trading Online, which runs the site, was "in substantial breach" of an agreement it made in 2004 not to import the CDs. This week it decided the firm must pay £37m, plus interest, to the group of record companies.
Matt Phillips, from the BPI, said it would send a message to others considering making money by importing the knock-down records.
"I think this is huge," he commented. "I mean if you look over the past ten years, an increasing number of CD sales have moved to online retailers, so if anyone thought this was a legitimate loophole that could be exploited I think they are mistaken."
However, CD-Wow said it would continue selling cheap CDs and could appeal.
The High Court ruled in March that Music Trading Online, which runs the site, was "in substantial breach" of an agreement it made in 2004 not to import the CDs. This week it decided the firm must pay £37m, plus interest, to the group of record companies.
Matt Phillips, from the BPI, said it would send a message to others considering making money by importing the knock-down records.
"I think this is huge," he commented. "I mean if you look over the past ten years, an increasing number of CD sales have moved to online retailers, so if anyone thought this was a legitimate loophole that could be exploited I think they are mistaken."
However, CD-Wow said it would continue selling cheap CDs and could appeal.
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