CD Wow in court over 'grey CD imports'

Music industry trade body the BPI (British Phonographic Industry) is seeking a contempt of court order against e-tailer CD Wow, after the company was accused by the BPI of continuing 'grey imports' of CDs from abroad.

Philip Robinson, a former director of CD Wow, agreed to pay £50,000 towards court costs but didn't accept he was in breach of an earlier undertaking to the court, where it agreed to stop importing CDs from Asia not intended for resale in the UK.

However, the entertainment e-tailer is rejecting calls from the BPI for it to pay a fine, damages or costs.

The BPI is now 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; and an order that CD Wow pay the UK record industry's costs.

BPI general counsel Roz Groome said in a statement: "We believe CD Wow is guilty of flagrant and systematic breaches of a High Court order... 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."

CD Wow denied it had intentionally used grey imports of CDs not intended for this country and any breaches were a result of human error.

CD Wow co-founder Henrik Wesslen said: "The current copyright laws are mad but that doesn't mean we don't stick to them. We have always acted transparently and where we have been pulled up on a small number of unintentional instances we are big enough to hold our hands up."

The etailer added it may face closure if it loses the battle with the BPI.

The legal wrangling between the two was initially concluded in 2004 when they reached an out-of-court settlement which saw pounds added to the price of CDs after CD Wow switched from sourcing its goods from Asia to Europe.

CD Wow suggested in emails to customers that the price rises were imposed on it, a claim the BPI refuted leading to an injunction preventing the CD seller from repeating the claims.