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Record companies and High Street retailers will be watching next month's court battle between the BPI and online retailer CDWow! with trepidation, as the trade body fights its first test case against a parallel importer.
The BPI is poised to mount its highest-profile assault against web-based parallel importers with two legal actions ranged against CDWow! and Play.com. The results of the legal action could have significant implications for retailers, whose CD chart prices of around 10 [pounds sterling] and above compare with the prices of just 8 [pounds sterling] often charged by CDWow!.
Paul Forrest, partner at BDO Stoy Hayward, says that if CDWow! is successful in the legal case it will mean that retailers will have to "refresh their own strategies" in order to successfully compete on price. He adds, "They can use their buying power to be cheaper than existing services. There could be a big material cost reduction."
The BPI and CDWow! are due to meet in the High ...