According to The Financial Times, Web giant Amazon.com is being investigated by the British Phonographic Industry (BPI), which suspects it may be breaking copyright law by shipping CDs from America to British customers.
Two other e-tailers, Play.com and CD Wow, have also been investigated by the BPI. Next month, the BPI will tell the High Court that Hong Kong-based CD Wow is breaking the law by buying CDs in Asia, importing them into Britain, and selling them cheaper than UK-based retailers without the permission of the copyright owners.
Sites such as Play.com and CD Wow are popular with some Web users, as their wares are often significantly cheaper than those of UK-based rivals. Unlike Amazon.com, both sites offer free delivery on top of prices that are typically much lower than the recommended retail price.
But the BPI is expected to argue in court that this action constitutes "parallel importing", where a supplier buys items in one country and ships them into a second country where the items are more expensive, because the brand owner charges a much higher price.
After a high-profile court battle between Tesco and Levis over the sale of cut-price jeans, the European Court of Justice ruled in 2002 that the importation of trademarked goods into European countries for resale was only allowed if the trademark owner has given 'unequivocal, positive consent' to such importation.
According to Amazon.co.uk, there's no suggestion that it is being investigated by the BPI, but a company spokeswoman wasn't able to speak on behalf of Amazon.com -- which is expected to give its view on the issue later on Wednesday. The e-tailer has already insisted that it respects the copyright laws of every country it operates in.
The BPI had also failed to respond to a request for comment at the time of writing.
Talkback
This sounds like The music industry just wants to rip off the british pulic again. If companies like amazon, play.com and cd-wow.com can afford sell the CDs and such good prices and have free delivery and still make money, then doesn't that suggest CDs in this country is just over priced!! Companies like CD-wow have to buy the original CDs, pay the import tax and delivery costs and still make money on selling the CD so cheap. Shops and British based web sites should be able to do the same! Sounds like RIP OFF BRITAIN to me!
Reduce your prices for CDs and increase the penalty for piracy and the problem will reduce as no-one wants a prison sentence for pirating a CD thats cost a few pounds.
In the new global economy, I can't really see the BPI's point... The album gets sold all around the world, if I can buy it cheaper from another country, what is the problem?
As long as I don't buy a pirated copy, the artist and studio will still get a cut. If the local distribution channel is taking such a large cut or is so poorly optimised that it is cheaper to source it abroad and pay the import duty, then they need to rethink their methods and become competitive, not look to stop the flow of cheaper "legitimate" product.
If they equalized the price and release dates across the world, there wouldn't be any problems. With Import Duty, it would be uneconomical to source it from another region.
If I want to listen to a CD or see a film, I can download it off the internet pretty much as soon as it has been released. I don't because I like to have the original CD/DVD. But I won't pay exortionate prices for it either... I'll look for the best deal.
The industry has a choice..allow consumers to buy genuine CD's and DVD's from wherever they want, or encourage the growth of piracy by actions such as this.
I'm sure they'll make the most stupid choice. Regard it as another self-hammered nail in the coffin of these monopolistic rip-off merchants who have no excuse at all other than greed for this action.
Who looks after the customers best interests? Why can't we take the BPI to court for blatantly being biased against us?
The BPI need to realise that the reason piracy is sucxh a huge problem is that because for years we have been ripped off paying far higher prices for exactly the same items. At least the customers of these firms are buying CD's and not pirating them.
Stop being greedy and adress the real issues BPI. If we could buy these CDs here for the same amount of money we probably would!
Regarding the trub amazon is in well at christmas i wanted a dvd for my hubby and went into a proper shop down the town and found the dvd it was £18.99 , so naturally didnt buy it , came home went on amazon and got the same film but directors cut for a tenner so obvioulsy got it from amazon.
To be honest as a having to watch the pennies wife and mum AMAZON IS MY LIFESAVER and seems to be one of the only market places that actually cares about its customers and dont rip em off
It's the age old thing. If products are cheap enough, people buy them - otherwise they don't. If they still want it they copy it so the manufacturer loses out.
The music industry sobs all the time about how hard done by they are - check their cars and homes - not much poverty in evidence.
They may win in the courts, but are hated by the very people they need to buy their products (known as the customer - probably an unknown to the industry).
Just a few sticky points for the BPI to consider...
1. Isn't price fixing illegal ??? If shops here are having their minimum sell price controlled by a cartel then the law is being broken.
2. Am I breaking the law if I pick up a copy whilst in a different country and bring it back with me (irrespective of import duties) ??
I know plenty of people regularly buy pirated copies of CDs and DVDs, I don't because I know that the artist and studio will get their cut if I buy my copy legit from a cheap source.
What price does observing the law come at ?? If I can stay legal for just £1 or £2 then I will, If it's going to cost me £5 or £10 then I'll think twice about purchasing at all !!
People in glass houses shouldn't throw stones !!!
Companies in this country do not complain when they sell their products abroad - so why should they complain when other countries do the same here?
When all's said and done in this 'free enterprise' system that we supposedly have, the consumer deserves to get the cheapest product he can get - if this means importing the goods from abroad, then so be it - the consumed has been 'ripped-off' for long enough!
But - and its a big BUT - this should not detract from the service supplied when a purchase is made resulting in the goods being imported.
Delivery times should be clearly stated and adhered to, with the option to cancel if this is not met.
Prime examples are DVDPlus and CD-WOW:
DVDPlus state delivery dates, and have kept to them with EVERY order I have placed with them;
CD-WOW on the other hand did not advertise that they were sourced from outside the UK, but do state delivery dates when orders are placed - so far NONE of mine have ever arrived by the stated date.
So, basically, it is the cost and service to the customer that matter, and these are of paramount importance.
I buy all my CD's via CD WOW and am grateful for the savings I am able to make. It is about time the BPI and the industry in general got it's act together and lowered prices in the UK.
If prices reflect sales and these prices were constant worldwide, then I am sure we would all buy our products from our home market, thus increasing sales. We all have an eye for a bargain.
If the recording companies brought the cost of the Cds down, then people like us wouldnt need to use the internet to buy them. I would rather buy from these two firms Cd-Wow and Play.com than, your Jo bloggs illegal copiers who download and make a bloody big profit, at least you get what you pay for!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
A disgruntled subscriber to both of these companies, and keep up the good work.....
If an artist sells a million albums worldwide does it matter which country the cds were sold in? Not really, Apart from the fact that record labels may miss the oportunity rip the Great British public off once again.
If the record labels can't manage to appropriately divide their global profits between their various international divisions then thats their problem.
If a label pays an artist a stupidly large sum of cash ( eg Robbie Williams) why should every other artists cd's be bumped up in price to compensate? I can't stand Robbie Williams so why should i have to subsidise the cost of his music for his fans?
If the label can't cover its costs for a particular artist then they are paying them too much!
Well CD-Wow and the BPI have settled out of court, which I guess means that the BPI have more money and lawyers and the British Public have lost out as usual. I'm not sure Amazon will be walked over quite so easily though.
I went to the BPI website, they actually have the cheek to popup a banner asking you to sign a petition to reduce VAT on sound recordings and this is the amazingly funny bit, "If you love music and want to pay a fair price for it sign the petition"! The heading is also quite amusing, "Music lovers are the victims of Discrimination".
If you love music, don't want to be the victim of discrimination, and want to pay a fair price for it, I'd say move out of Britain away from the reach of the BPI.
i too buy all my cds from cd wow if i have to pay double the price i just wont buy them at all .everyone should stick together
Disgraceful. The UK recording industry is operating an illegal cartel with the big retail chains, Virgin, HMV, etc. Neither can understand the principle of free trade, and are simply running scared as they see their ridiculous profit margins, and market shares, eroded. Rip-off Britain is alive and kicking...