The British Phonographic Industry (BPI) said today (Jan. 21) that it has resolved its legal dispute with Internet retailer CD Wow, avoiding a planned Feb. 2 hearing at the High Court.

The British Phonographic Industry (BPI) said today (Jan. 21) that it has resolved its legal dispute with Internet retailer CD Wow, avoiding a planned Feb. 2 hearing at the High Court. The trade body launched proceedings on the E-tailer earlier this month, alleging that it was selling discounted CDs in the form of illegal parallel imports.

According to the BPI, CDWow was violating copyright law by sourcing low-priced product from outside the European Economic Area.

Launched in February 2000, CD Wow has established itself as a successful e-tailer, generating annual revenues of about £100 million ($180 million). Its physical product is generally shipped from Hong Kong.

As a result of the settlement, the online company has agreed to sell only European-originated product. CDWow.com will raise CD prices by £2 ($3.67) as of Sunday night for all deliveries to the U.K. and Ireland.

Insiders at the BPI say they are delighted with the result. "We definitely won this case," one insider comments.

"I am delighted that we have been able to resolve this case on agreed terms without the need for a trial," says BPI chairman Peter Jamieson in a joint statement. "This has been a long, drawn-out affair which we are pleased to have resolved," adds CD Wow director Philip Robinson.

A BPI spokesman was unable to comment further on the agreement due to a confidentiality clause.

The BPI has also issued legal proceedings against Jersey-based company Play.com over parallel imports, and has tested product from Amazon.com.