Legal challenge to online CD retailers
BPI targets two sites over parallel imports
January 8 2004
Online discount music retailers CD Wow and Play.com are facing a legal challenge from the British Phonographic Industry (BPI).
The BPI, which represents copyright owners, claims the online discounters are breaching the law by parallel importing CDs.
By importing from the Far East and elsewhere, the retailers are routinely undercutting other retailers on chart CDs by several pounds.
The BPI claims the grey market CDs, coming from outside the EU, cannot be legally sold in the UK on copyright grounds. CD Wow, which is one of the most high profile of the new generation of online music discounters, is likely to be first to court, with a High Court hearing expected next month.
CD Wow is registered in Hong Kong, but operates a UK call centre and sells two-thirds of its products in the UK. Play.com is based in Jersey.
Philip Robinson, director of UK-based CD Wow, said: “We have got consent and change of ownership takes place outside the UK.” The company buys CDS legitimately through the Asian arms of record companies and argues that its customers make their purchase in Hong Kong and then arrange a personal import.
Robinson said: “It is just the same as someone buying a CD while on holiday and bringing it back themselves.”
The Consumers’ Association, which has campaigned against what it claims are excessively high CD prices in the UK, criticised the BPI. Spokesman Phil Evans said: “It should not be up to arrogant industry fat cats to decide whether we are allowed to import cheap CDs.
“This legal action has nothing to do with protecting consumers but everything to do with giving record labels the green light to start pushing up prices.”
The BPI has denied a report that it is also considering action against online retail giant Amazon.com. The trade body said it regularly checks all online retailers, and a recent test purchase from Amazon was just routine.
