The BPI had taken legal action against the cut-price CD and DVD internet retailer over its on-line sales of CDs that had been bought cheaply in Hong Kong, allowing the company to undercut rivals in the UK and Ireland.
The BPI argued that while the discs were genuine, and had been released in Hong Kong with the appropriate licences for sale in Hong Kong from the copyright owners, the CDs had not been licensed for sale in the UK.
The complaint of the BPI was that its members and its fellow claimants are the owners or the exclusive licensees of the UK copyright in titles being sold at the site; that the discs were being imported without their consent; and that this amounted to parallel importing. Such parallel imports are prohibited under UK copyright law.
The case settled two weeks before it was due in court, with CD WOW! agreeing not to sell CDs that have been first placed on the market outside Europe to UK and Irish customers. It now only sells CDs that have first been placed on the European market to UK and Irish customers.
However, on the day that the settlement was announced, CD WOW! e-mailed customers to announce:
"The UK Major record companies through their mouth piece the BPI have unfortunately restricted the UK and Irish consumers' right to enjoy the freedom of the World Wide Web.
"As from this weekend, any CD ordered for delivery to the UK and Ireland will incur a surcharge as we are only able to deliver CDs manufactured within the EU (more expensive)."
The cost of CDs accordingly rose by £2.
The BPI took exception to the implication that it was responsible for the price rises, and has now won a temporary injunction at the High Court preventing the internet retailer from claiming that the BPI had forced the price rise.
In a statement the BPI revealed that the barrister for CD WOW! had
"agreed with the Judge that CD WOW! had not had to increase prices and that whether or not CD WOW! charged more for CDs was a matter for the internet retailer alone."
Speaking to silicon.com, a BPI spokesman commented
"Naturally we were disappointed that CD WOW! sought to mislead its customers in this way."
He added
"Consumers should be aware that cases like these are not about pricing; retailers are free to set whatever price they like. We just want them to source legally. Amazon and the supermarkets have proven that you can sell CDs for under £10 and still make a profit."
The good news for consumers is that CD WOW! has reduced prices again to where they were before the action began. This week it sent another e-mail to customers:
"We've been working our little cotton socks off to source our Chart Albums within the EU at the lowest possible price and cutting our margins even more.
"In simple terms, from today the additional charges are no longer applicable. Chart CDs remain at £8.99* [*Price applies to the majority of single albums] including deliveries to the UK - yippeee!
"There have been a few cutbacks in the office, I'm working out of the YMCA and using an etch-a-sketch as my PC was sold.
"But fear not - you get our great CD price - and I'm loving the YMCA tomato soup!"