Music Trading Online, the company behind online retailer CD-Wow! has been ordered to pay £37 million to the BPI (British Phonographic Industry) for being in "substantial breach" of a previous agreement to stop them from importing cheap CDs from Hong Kong.
In 2004 CD-Wow! found itself in legal hot water after being accused of grossly violating UK copyright laws by selling CDs to UK consumers that had been manufactured for sale outside of the EU.
The Hong Kong-based company reached an out of court settlement with the BPI and allegedly agreed to stop importing CDs, something that they warned would result in higher prices to their customers.
It appears that CD-Wow! did not keep to the agreement and the High Court in London found them in contempt of court and subsequently ordered them to pay £37 million, plus interest, to the BPI.
As well as the CDs sold by CD-Wow! not having the correct region's copyright, they are also said to have an unfair advantage over other UK retailers as they undercut prices with their imports.
CD-Wow! is calling for a full review of the copyright law and has apparently said it will continue to sell cheap CDs.