CDWow future in doubt after €61million fine

The UK High Court found CD WOW guilty in March of Contempt of Court, by breaching an undertaking it gave to the court in 2004 to stop illegally importing and selling CDs and music DVDs.
The inquiry on the amount of damages to be paid was not due to be heard until July, however because CD WOW failed to co-operate with orders, the judge brought the assessment forward, ordering them to pay stg£41m in damages.
This is the largest award ever made in favour of the BPI (British Phonographic Industry) and IRMA (the Irish Recorded Music Association).

Dick Doyle, director general of IRMA said: "This is a significant legal victory for the Irish and UK record companies. Not only has CD WOW been undermining the legitimate business of both the record companies and retailers, flouting the law by continuing to import CDs and music DVDs from Asia at the expense of the musicians and the music industry that supports them, they have also avoided paying VAT."
Stephen Fitzgerald, managing director of Golden Discs added: "Any judgement which levels the playing field for all physical and online retailers is a welcome one. The practices of parallel importing and exporting under the low value consignment relief scheme do not serve the industry, artist or consumer."
Steps have now been taken to enforce the stg £41 million damages award, and the company’s Hong Kong bank accounts and assets have been frozen.