Wednesday, March 21, 2007

CD WOW! and the BPI

This has been an ongoing saga for many years now and is basic exploitation of members of the EC.

http://www.theregister.co.uk/2007/03/21/cd-wow_loses_parallel_importing_case/

"

That offence is called parallel importing and involves a breach of copyright. CD WOW! had previously promised to a court not to engage in parallel importing.

"This judgment confirms that CD WOW have not only consistently flouted the law in their business practices, but have flagrantly ignored the undertakings that they themselves gave to the Court that they would trade legally," said BPI general counsel Roz Groome.

The case, which has been running for six years, centred on CD WOW!'s sale of CDs and DVDs for significantly less than High Street prices. The company sold its CDs from a warehouse in Hong Kong, where CDs are sold for less than they are in Europe."

What happens is that a store can purchase goods from outside the EU (say the USA or in this case Hong Kong) pay for them to be shipped from wherever, and sell them at a profit in the UK at a much lower price than the producers want to sell their goods to stores in the UK.

What do the producers use to beat the retailers? Copyright law. Now these goods are not pirate goods, not stollen all they are is cheaper than are usually sold in the UK. The same thing happens with jeans imported from the US because the producers want to rip-off EEC citizens. In the US they wouldn't get away with this kind of abuse of copyright laws, so why is the EC allowing it here?

There is no wonder that people pirate their music, or designer goods when this kind of price fixing is happening. In the modern world there is no excuse for selling at different prices into markets that are protected by enhanced copyright laws. Write to your MEP and object.

Monday, March 12, 2007

Strange pricing structures

I run my own business, and I know just how hard it is to get new clients, it's much easier to keep the ones I have happy than to recruit new ones.

This brings me onto mobile phone companies' pricing structures. I've got to the end of my contract with 3 and wanted to renegotiate my contract with them. On the whole I've been happy with the service, I'm a non-demanding user really. My requirements are for a phone I can make/receive calls, send/receive SMSs and it has to be able to synchronize both ways with my email and calender.

3 have some fantastic deals going for *new* customers, but they totally neglect their current ones. None of the deals are for existing users. I needed a new phone, would have been happy with something similar to what I have now, and wanted their 18month 1/2 price contract as they offer new customers. Oh no! Go into the 3 shop and it's "brand new customers only sir!". Best they could offer was a non-smart phone and 6 months of an 18 month contract at 1/2 price. So I'm paying for their new customers out of my pocket.

No wonder 3 have one of the highest churns in the industry.

I'm off to Orange tomorrow to sign up for an SPV.