Wednesday, May 30, 2007

CD Wow to pay labels $81 million news:-CD Wow has been ordered to pay a Big 4 music cartel 'trade' company some £41 million (today about $80,994,655) for breaking UK import rules.

And downloading wasn't an issue.

"The High Court in London ruled in March that the site's owners, Music Trading Online, were 'in substantial breach' of a 2004 agreement to stop importing CDs," ordering the company to pay "£37m plus interest to the British Phonographic Industry (BPI)," says the BBC.

The story has ceo Henrik Wesslen declaring, "We are the little guys selling CDs to the UK market and they (the BPI) have picked on us for that reason. Other bigger sites doing the same thing have been left alone."

According to The Times Online, CD Wow imported cheap CDs from Hong Kong, "but promised as long ago as 2004 to stop the practice." But earlier in the year it was found guilty of continuing the trade.

"Yesterday CD Wow - a privately held company with little-known British and European founders - said that the BPI was able to cite only 39 instances of the rules being breached, a fraction of the 10,000 CDs it ships a day," says the story.

But, "CD-Wow is no consumer champion," stated the BPI's Geoff Taylor, says the BBC.

Full story

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