MI2N
Music Industry News Network
TUESDAY, JUNE 28TH
Advanced Search
MusicDish Advertising Network
Subscribe to Mi2N's Free Newsletters B2N (business) i2N (indie)
HOME | FREE NEWS SUBMISSION | PREMIUM PR DISTRIBUTION | PR COPYWRITING | RSS FEEDS | TESTIMONIALS | CONTACT

Sections: Band | Business | Career | Events | Label | Music Releases | Radio | Tech | Video | Web Events
Genres: Country/Folk | Dance/Electronica | Jazz/Blues | Latin | Rock | Urban | World
International: Asia | Canada | Europe

Advertise | Artist Development | Submit Video | MusicDish*China | MusicDish e-Journal | MusicDish Network | Urban Music News Network
Label News (more headlines) 08-25-2003

Penalties More Than Doubled To Over $2 Million As Full Court Upholds Part Of CDs Decision

Bookmark and Share

The Full Federal Court has today upheld that Warner Music and Universal Music had breached section 47 of the Trade Practices Act 1974 dealing with exclusive dealing when responding to the parallel importation of music by small business.

The court did not affirm a breach of section 46, based on the earlier High Court Boral judgment.

The court increased the total penalties payable by Warner, Universal and company senior executives to a total of more than $2 million.

"This decision is important as it sends a strong message to those who would attempt to influence retailers against stocking the often cheaper parallel-imported CDs in competition with Australian-made CDs", ACCC Chairman, Mr Graeme Samuel, said.

"Consumers can benefit also from the lower prices and greater choice.

"Justices Wilcox, French and Gyles further clarified the law regarding misuse of market power by following the High Court judgment in the recent Boral case", Mr Samuel said. "Both Warner and Universal were unsuccessful in appealing the original decision of Justice Hill that they had contravened the exclusive dealing provision of the Act".

In their judgment, the Full Court stated: "Although short-lived the purpose of that conduct was to snuff out the emergence of a form of competition opened up in the interests of consumers by the amendments to the Copyright Act. On any view these factors would indicate the need for a substantial penalty to be assessed bearing in mind the maximum of $10 million".

They also said: "As we have said, the contravening conduct was plainly and deliberately anti-competitive in its intent".

At trial, Justice Hill held that Warner and Universal had breached the Act by threatening to refuse to supply Australian retailers who stocked parallel-imported CDs, and later refusing to supply retailers who stocked such imports. Those findings made by Justice Hill preventing Warner and Universal from refusing, or threatening to refuse supply to retailers for the reason that they source or propose to source non-infringing copies of music within their catalogue from an alternate source, were upheld by the Full Federal Court.

The ACCC, while successful in establishing a breach of the Trade Practices Act at trial, appealed the pecuniary penalty awarded by Justice Hill (totalling more than $1 million) as being inadequate given the circumstances of the case.

The Full Court held that penalties need to be set to adequately reflect the need for deterrence and ordered the following penalties:

- Warner and Universal $1,000,000 each

- Paul Dickson (formerly PolyGram Group Managing Director of Music Operations) decreased from $50,000 to $45,000

- Craig Handley (formerly PolyGram General Manager of Sales) - $45,000

- Gary Smerdon (Director of Warner, formerly Finance and Business Affairs Director) - $45,000; and

- Greg Maksimovic (Warner NSW State Manager) - $45,000.

Mr Samuel welcomed the decision of the court to substantially increase the penalties imposed on Warner and Universal.

"Penalties of $1 million each for Warner and Universal and $45,000 each for the senior executives of those companies show that the court, when faced with serious breaches of trade practices law, will impose penalties to match".

Injunctions have been made preventing Warner and Universal from engaging in exclusive dealing with the purpose of substantially lessening competition in the Australian market for recorded music.

The court ordered that the companies pay the half of the ACCC's appeal costs and 50 per cent of the ACCC's trial costs.

Bookmark and Share

back | top



MusicDish Advertising Network

Mi2N Music PR

The PondHawks Might Be The Next Breakout Band With Their New Album That Is Gaining Worldwide Radio Attention

Zaena Morisho Releases Smash Singles 'BS' & 'What Do U Want' In Anticipation Of The Highly Anticipated EP 'Zaena Now' To Be Release Worldwide July 29

Iconic Platinum-Selling Vocalist Anita Ward Returns To Celebrate Pride 2016 With Empowering Dance Anthem "Another Bad Mistake"

Double Impact DJ Chills The Summer With Their Hit Single "Looking For A Kiss"

Alicia G Hot New Video "Ca$h & Nap" Released Worldwide June 9, 2016

Alicia G Hot New Single Ca$h & Nap Released WorldWide June 9, 2016 Through LRT Music Group

Acclaimed Songwriter Andreas Carlsson Becomes Advisor And Investor In Online Music Recording Studio Soundtrap



MusicDish*China Song Blast
Promote Your Music Single In China

News Headlines
Mi2N EDITOR'S PICKS
» MEPs Call For A Level Playing Field On Copyright For Online Platforms
» Eleven Engineering, Inc. Updates & Re-Launches SKAA.com
» Alisa Apps Files Lawsuit Against Universal Music Group And John Newman
» The Infinite MC Releases New Video 'Never Hurt Me Soul'
» Pandora Delivers Transparency For Music Makers With Music Reports Agreement
» Matt Young Named EVP, Warner Music Artist Services
» Successful Seed Round For Soundcharts, The Essential Monitoring Platform For Music Professionals
» DPA Microphones, Lectrosonics, Sound Devices, And K-Tek To Host The Sound Summit Toronto
» Jefferson Thomas Releases Election-Themed Single, "Next One"
» Jon Mullane Joins The Campaign To Change Direction


Get your music news covered...
Have your press release written
by the pros at Mi2N

Articles
MUSICDISH E-JOURNAL
» Morbid Goats Farewell Tour And Digital Album Release
» Alisa Apps Files Lawsuit Against Universal Music Group And John Newman
» MusicDish*China Music Releases, Charts, MV Premiere And Radio Feature
» Andreas Carlsson Becomes Advisor And Investor In Soundtrap
» Adva Mobile Fan Engagement Score (ES)
» MusicDish*China Presents Ji, Yui And Nagi Trio For A Night At The Museums
» South Korea's YG Entertainment Attracts Chinese Investment
» Cpop Goes Global With KKBOX And Twitter
» Syndney Singer Rainbow Chan Guest DJ On China's Kanjian FM
» Brownswood Launches Second "Future Bubblers" Music Discovery Program
» MusicDish Yaogun Adds Chinese Rock On Colectivo Bunka USB Vol. 6th Asia Music Compilation
» Kobalt Offers Creators Real-Time Earnings & Data Reporting

Mi2N's Music PR distribution service guarantees online exposure for your press release. Choose from seven (7) different packages.


HOME | FREE NEWS SUBMISSION | PREMIUM PR DISTRIBUTION | PR COPYWRITING | RSS FEEDS | TESTIMONIALS | CONTACT

Sections: Band | Business | Career | Events | Label | Music Releases | Radio | Tech | Video | Web Events
Genres: Country/Folk | Dance/Electronica | Jazz/Blues | Latin | Rock | Urban | World
International: Asia | Canada | Europe

Advertise | Artist Development | Submit Video | MusicDish*China | MusicDish e-Journal | MusicDish Network | Urban Music News Network
Copyright © 1997-2015 MusicDish LLC, all rights reserved. Text, graphics, and HTML code are protected by US and International Copyright Laws, and may not be copied, reprinted, published, translated, hosted, or otherwise distributed by any means without explicit permission.