CD Wow and BPI settle legal battle

UK music bosses have agreed to settle out of court with internet retailer CD Wow. The record industry - through its UK trade body, the British Phonographic Industry - had claimed that CD Wow was illegally importing CDs to the UK and Ireland. According to the BPI, CD Wow - which sells CDs from big-name artists including Dido and REM from as little as £6.99 - was obtaining sound recordings from outside Europe and selling them to UK and Irish consumers. Earlier this month, a spokesman for the BPI told Web User: "CD Wow is parallel trading because it doesn't have the licence to sell CDs manufactured in Asia. Record shops in the UK can't compete with the low prices offered by CD Wow as they are not allowed to import CDs from outside the EU." In a settlement, two weeks before the case was due to be heard at the High Court, CD Wow has agreed that it will not sell CDs that have been first placed on the market outside Europe to UK and Irish customers. It will only sell CDs that have first been placed on the European market to UK and Irish customers. BPI chairman Peter Jamieson said: “I am delighted that we have been able to resolve this case on agreed terms without the need for a trial.” Philip Robinson, director at CD Wow, said: "This has been a long drawn out affair which we are pleased to have resolved." But the UK Consumers' Association has described the settlement as "truly awful news" for British shoppers. Prices at CD Wow are expected to rise by around £2. Phil Evans, principal policy advisor at Consumers' Association, told Web User: "It seems the music industry just wants to kill the internet off as a useful tool for consumers. The music industry makes it difficult to download music by using encryption technology and now they want to put the prices of CDs up as well, it's a clear attempt to rip us off." "It's truly awful news that the case has been settled as we would have loved to see this go to court," added Mr Evans. "Every consumer has an £18 personal import duty and CD Wow recognised this and was a perfectly legitimate website."