The company responsible for CD-Wow, Music Trading Online, has been ordered to pay £41 million to the British Phonographic Industry.
The online retailer, which sells CDs, DVDs, games and books, is said to have breached an agreement which prevented it from importing cheap CDs from Hong Kong to sell in the UK.
The Hong Kong-based company has been in legal trouble before. It was accused of breaking copyright laws in 2004 by selling CDs to UK customers which were meant for sale outside of the EU. An out-of-court settlement was reached and the company said it would stop importing, even if it meant its customers would have to pay a greater price.
The High Court in London has now found that CD-Wow has not been keeping to this and demanded it pay £37 million plus interest to the BPI, which represents the major UK record labels. The company is also accused of undercutting prices.
CD-Wow is requesting for a full review of the copyright law and will continue to sell its cheap CDs. The retailer has also said it may appeal against the ruling.