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Australian Court Doubles CD Importers' Fines

anti-fsck writes "Australia's Full Federal Court today upheld a lower court's decision that music labels Warner Music and Universal Music had engaged in anti-competitive practices in the .au CD market by threatening retailers who imported cheaper CDs. The court also doubled the labels' fine - and the fines for senior label executives - to more than $A2 million. w00, cheap CDs at last? Now if we can only get US-zoned DVDs legalised as well ..." Another reader notes that the U.S. government is busy trying to get Australia to change its laws to increase the profits of U.S. record companies.

31 of 258 comments (clear)

  1. The real story? by henbane · · Score: 5, Interesting

    I think what this really should have mentioned more prominently is the second story. Talk about imperialist running dogs of the capitalist pig regime. - "Hey there, want a trade agreement? Not unless you bow down and worship the god of copyright exactly like we do"

  2. What business is it of theirs by Trigun · · Score: 5, Interesting

    U.S. government is busy trying to get Australia to change its laws to increase the profits of U.S. record companies.

    Let the record companies deal with it, not the government of another country.

    Yeah, globalization is a bitch. Deal.

    1. Re:What business is it of theirs by Anonymous Coward · · Score: 5, Insightful

      Americans only like free markets and capitalism when it works in their favor. When it doesn't, they enjoy getting their government meddling with tolls and taxes and what not.

      They still have steel-tolls, right?

      They're not capitalist, they're as socialist as the rest of us (in Europe) -- it's just that they're either too stupid to see it, or in denial.

    2. Re:What business is it of theirs by Anonymous Coward · · Score: 5, Informative
      Ok, I RTFA, and I can't come to the same conclusion as our illustrious slashdot editor:

      the U.S. government is busy trying to get Australia to change its laws to increase the profits of U.S. record companies.

      The very first sentence in the linked article says:

      US TRADE officials have backed off from a tough line on music, movie and software piracy, admitting that shoehorning Australia into a copyright regime based on criminal law may be "a bridge too far".

      ...but this is /. and I guess it's easier to just take a comment from Michael for granted and just react to that, huh?

      Under heavy lobbying from the US entertainment and software industries, the Office of the US Trade Representative had listed the harmonisation of copyright legislation among issues to be raised with Australian negotiators for the Free Trade Agreement. But the head of the US Department of Commerce's International Trade Administration, Undersecretary Grant Aldonas, said America would not be pushing too hard on intellectual property during the current negotiations.

      Yeah, the *IAA pushed hard, the US govt doesn't seem to be doing too much though.

    3. Re:What business is it of theirs by gidds · · Score: 4, Insightful
      they're as socialist as the rest of us

      [fx: reads downthread] Oh dear... The problem here is that different people see different things when they read. When you or I read 'socialist', we see someone who wants the community as a whole owning and controlling industry, and the social and political organisation that goes along with it. Or something along those lines.

      But when many Yanks read 'socialist', they seem to see "Filthy! Subversive! Pinko! Dirty! Commie! Bastard! Atheist! Traitor! Die! Die! Die!" instead. Which kind of makes informed political debate rather difficult.

      --

      Ceterum censeo subscriptionem esse delendam.

    4. Re:What business is it of theirs by Shimbo · · Score: 4, Insightful

      Everyone seems to act like the US is the only government that tries to protect its business interests, but all governments do...Look no further than France/Russia's real motives for supporting Iraq all these years

      Of course, governments pursue thir own interests, and those of their citizens. Most of the time, that's a reasonable way to act. The annoying thing about the US government, is that it expects everyone else to act to further US interests, and seems surprised and offended when they don't.

  3. Being depressing by PurpleWizard · · Score: 4, Interesting
    but not defeatist.

    This is just a battle slowing the seemingly inevitable unless changes that are more fundamental are made. It is just part of the trend like DRM, software patents making it into Europe and the like...

    What's the real solution to the continual move of power to corporations? Or is it best we all just roll over and take it like good domestic livestock?

    1. Re:Being depressing by boogy+nightmare · · Score: 4, Informative

      Software patents have not yet made it in to Europe for fear of it being like the US, in fact all over europe at the moment there are protests to software copyright and patents.

      In fact the majority of the EU doesn't actually want it and a lot of the EMP's are fighting to have it chucked out.

      S

      --
      Kingdom of Loathing (www.kingdomofloathing.com) Addicted is me
  4. Why should US companies complain? by djeaux · · Score: 4, Insightful
    First, a $2 million fine is chump change for Warner and Universal.

    Second, although the Australian court decision is couched in the guise of "copyright law," it's no different in effect from protective tariffs or import taxes.

    This raises the question why Australia didn't just enact an import tariff on compact discs equivalent to 100% of the price of an Australian-made CD.

    --
    "Obviously, I'm not an IBM computer any more than I'm an ashtray" (Bob Dylan)
    1. Re:Why should US companies complain? by Anonymous Coward · · Score: 4, Informative

      It is the complete opposite. They want to make CDs cheaper for people by encouraging parralel imports. Import duties would be counterproductive to that aim.

  5. Re:Can they really.... by rokzy · · Score: 4, Insightful

    IANAL, but executives can be held accountable, e.g. corporate manslaughter where AFAIK bosses can be held personally accountable for unsafe working conditions.

    google'd:
    http://www.mhcinternational.com/corpo rate_manslaug hter.htm

    CORPORATE MANSLAUGHTER

    There is nothing new in the notion that industry and commerce have had hands in the deaths of customers, employees and their neighbours. Regardless of whether the reasons were driven by negligence or by incompetence, the net effect was that next to never were companies or their top managers held accountable by the courts.

    Changes may well be on the way. The UK Government (May 2000) is now in consultation about the size and shape of corporate manslaughter or corporate killing charges. Prospectively unlimited fines are in view. There may be prison sentences for culpable directors. And the field of vision will cover all enterprises, to include public sector organizations, rather than the private sector only.

    Enactment of legislation will take many months. The implications are clear even now. In addition to the moral responsibility which ought always to have been present, there are legal, cost and reputation reasons why managers should take action.

    'Turnbull' requirements are already focussing attention on internal controls within the organization. Social audit and social reporting skills are increasingly needed by top managers. Above all, organizations will do well to look again at their values and their codes of conduct, whilst making sure that the needed educational processes are in place and working.

  6. cd's are bad by Flingles · · Score: 4, Funny

    In the words of taco-man

    "I haven't bought a cd since 1999. Not because I download songs, but quite frankly RIAA, your music sucks donkey balls.

    --
    Karma: -2^0.5 . Mainly due to the imbibing of dihydrogen monoxide
  7. US-encoded DVDs? by LehiNephi · · Score: 5, Informative

    Get US-encoded DVD's? Does the submitter mean getting those DVD's in Australia, or does he mean getting them to legally play in Australia.

    If the first, well....fat chance. The guys running those publishing companies have their heads in a tight, dark place.

    If the second, just ax the region encoding on your DVD player.

    --
    Help find a cure for cancer. Join the [H]orde
    1. Re:US-encoded DVDs? by muffen · · Score: 5, Informative

      Get US-encoded DVD's? Does the submitter mean getting those DVD's in Australia ... well....fat chance.

      Is there a law in place in Australia against importing Region 1 DVDs???

      I understand that there are trade-barriers in place, so that you have to pay VAT on the DVD's. But is there a law that actually states that you cannot import region 1 DVDs?

      Last I checked, several online retailers in the US and Canada are willing to ship their DVD's worldwide. DVDBoxOffice will even package them one by one so you don't have to pay VAT (when shipping to Europe atleast). Play is based in the UK, and they sell region 1 DVDs and ship worldwide.

      In regards to the region protection in DVDplayers.. well.. it's a joke. I think I could solder a chip into one of those players in my sleep (I know some are harder etc). On top of that, some cheap players I've come across had a hidden menu where you could simply change the region. So, I don't see how it would be difficult to get Region 1 DVD's in Australia, or any other western country for that matter.

  8. court number by IFF123 · · Score: 4, Funny

    $A2 million fine?
    -- must be some computer friendly judge to pass the fine in hex notation.

    --
    Who took my tinfoil hat?
  9. U.S. only Country Not beating back the U.S. by gabrieltss · · Score: 5, Insightful

    Is it me or is the U.S. the ONLY country not "Beating Back" the abusiveness of it's own corporations and government. (This should get me tag as a terrorist by saying this, in a country were supposedly we have a 1st amendment right to freedom of speech!).

    Yes I do live in the U.S., yes I do think it is corrupt from the top levels of our goverment down to the corporations.

    It seems just about every other country in the world is smacking the U.S. corporations that are trying to screw everyone, but for some strange reason WE CAN'T!

    Look what kind of crap we are having to fight:

    1) SCO - 'nuff said!
    2) MPAA/RIAA - take away our rights to fair use, and to mayn other things to list.
    3) Our Goverment - Took away our 4th amendment with the Patiriot act and allow law enforcement agencies free reign in what they do. All in the name of "terrorism".

    What they don't want you to know is that our damn goverment KNEW about 911 on August 20th. THe Israil (sp?) Massad warned our governemt about a terrorist threat and of massive amounts of terrorists (about 200 I belive) comming into this country. There was even an article about it in the Jeruselum Post's website not long after 911. (Any of our Israli brothers want to confirm this?)
    That's right your own government let it happen, why you say??? Think about what they have been able to do with that "terrorist threat" that they are using to try and scare us with. The patriot act, now talk of the patriot act II. Patriot Act - that is a damn slap in the face to the TRUE patriots that gave their lives for this country to be what it is today! I being former military am ASHAMED of our government right now!

    --
    The Truth is a Virus!!!
  10. Another knockback for the MPAA- record UK CD sales by tagishsimon · · Score: 4, Insightful

    Who'd have thought? CDs honor the traditional price elacticity of demand for commodity goods: don't rip off your punters and they'll buy your product.

    http://news.bbc.co.uk/1/hi/entertainment/music/315 8767.stm

  11. Myth of the Free Market by vergil · · Score: 5, Insightful
    I've always found it intriguing how actions on behalf of the US Trade Representative against parallel importation (a.k.a. "the gray market") flies in the face of the current U.S. administration's professed loyalty to the merits of a global "free market."

    In my opinion, a thriving gray market -- where consumers seek out cheaper products/services in other districts/countries -- is evidence of a healthy, competitive global economy.



    Sincerely,

    Vergil

  12. Now that's a fine!! by lobsterGun · · Score: 3, Funny
    ...to more than $A2 million


    You know they're serious when they have to make up new numbers to describe the amount of the fine!

    Either that or they fined them in hex dollars (works out to $162 million).
  13. The last comment in the post is telling. by Hoplite3 · · Score: 5, Interesting

    The WTO is supposed to support free trade and globalization. All sorts of countries are behind it, yet it hasn't bestirred itself to do anything about the most blantant anti-world market move ever made: region encoding on DVDs and videogames. Why can studios divide market? Why can't I buy Japanese games and play them in the US?

    Well, I guess the answer is obvious. But it irks me that everyone bought into international trade organizations that are so clearly biased.

    By the way, does this price-fixing crap remind anyone else of a similar US case? Did members of the industry get personally fined, or were they protected behind the corporate veil? Good thing Australia's got its act together. At least someone does.

    --
    Use the Firehose to mod down Second Life stories!
  14. Free Trade by muzzmac · · Score: 5, Informative

    One of the Big Deals in Australian politics is what is called "Free Trade". John Howard (Our Prime Minister) seems prepared to sell his soul to get "free trade" with the US.

    What does free trade mean?

    Basically having the US not protect its own farmers and let Aussie produce compete on an even footing with US produce.

    Problem is. The US government will never play in the important markets. Beef. No chance. Wheat, yeah right.

    Lamb. (The US has no real lamb market or demand) OK Free trade on Lamb. Oh and by the way. To get that you need to strengthen your Intellectual Property laws.

    Well Mr Howard being Bush fanboy #2 thinks that's a great idea.

    Aussie farmers are pretty ambivalent to the whole deal. No free trade basically means we now have one of the best performing farm systems there is.

    Oh check this out:

    http://www.austa.net/pdf/chapter4.pdf

    From within:

    US Interest in Australias position:

    - Restrict parallel importing of recorded music and branded goods
    - Concern about laws concerning decompilation of software
    - Concern about the adequacy of test data for pharamcueticals.
    - Concern that civil rather than criminal remedies are favoured for abuse of copyright or music.

    And we are going to sell that to sell a few friggin' sheep that Americans don't eat anyway.

    Idiots.

  15. Conversion Rate by loserbert · · Score: 4, Informative

    2000000 Australian Dollars = 1300300 United States Dollars 1 AUD = 0.65015 USD 1 USD = 1.53811 AUD Taken from ozforex

  16. I'm sure the RIAA is thinking.. by xThinkx · · Score: 3, Funny

    "Damn, now we have to buy off ANOTHER government, time to sue more file sharers and blame it on them"

    --
    Let's get one thing perfectly clear, I did not vote for George W Bush, and I do not endorse what he does or says.
    "
  17. TCO rather TCP by segment · · Score: 3, Informative

    Forget the total cost of ownership here, anyone ever take a look at the total cost of production of cd's and dvd's and the markups on them. While cassettes can be rather costly, and often sell for like typically 7.99 - 14.99, cd's and dvd's are made for peanuts .69 - 4.99 yet they sell for anywhere from 9.99 - * What a monopoly.

    Personally I could care less what one court says since another will go back and reverse and vice versa, but some of the record companies should tone down their bitching considering they're sticking it to the consumer %99 of the times. It's about time P2P came to bite them in the ass and give them a wake up call, and now hopefully some of the courts will too

  18. I can hear... by o'reor · · Score: 3, Insightful
    ...the WTO/Free Trade/Free Market zealots moaning : "Yeah, okay, but these are only exceptions, see, the free market always corrects this kind of abuse by itself". The same lame excuses we heard about Enron.

    I say, if it weren't for Australian justice and anti-trust regulations, those two corporations would still be ripping off consumers. Yet, most of our countries are engaged in WTO negotiations which compell countries to get rid of those "embarrassing regulations" in the name of so-called "competition" and "fairness". I'm not saying we need more regulations; just that the existing ones need to be upheld.

    Do you see where "competition" stands when corporations agree on pricing to rip off their consumers? What about "fairness" if the existing regulations are cancelled ?
    (Robot slams door open:)
    IP droid: `By using the words "fairness" and "competition", you just infringed on Trademark #AE6521 by corporation SueMyAss Inc. We'll see you in court, sir.'

    --
    In Soviet Russia, our new overlords are belong to all your base.
  19. Re:Business as usual... by Talthane · · Score: 5, Informative

    So you would be referring to the man who in 1786 founded Molson's beer in Canada, having emigrated from Britain where cider is so common that the West Country (south-west) in particular is known as one of the great cider-making places in the world, and is only peripherally - not to mention frequently reluctantly - close to France, a country that is known mainly for its wines and champagne?

    I think your geography's a bit off, as is your history of liquor (hmm...perhaps the two are related)...

    Oh, and we didn't conquer France in 1786 - they were busy winding up to chop a lot of people's heads off. A suitable fate for SCO executives, perhaps.

    --
    "This is why men never share their feelings; because women always remember." -Just Shoot Me.
  20. I love a sunburnt country by donscarletti · · Score: 5, Interesting
    The thing about Australia is that we have little to be patriotic with, our flag is unrecognisable to most of the world, our national anthem is unknown to most Australians, everyone seems to think our capital is Sydney, our soccer team can never make it to the world cup, Fosters is synonomous with us everywhere outside Austalia but is undrinkable to most Australians, our new submarines are noisy, Paul Hogan seems to be mistaken sometimes for a national ambasitor, our Prime Minister has the charisma of a block of wood, and one of the most popular politicians in recent history was just locked up for three years because she was too stupid to understand our electoral funding laws.

    The only thing we have to be proud of is our judicial system, the guys who blocked the Gordon below Franklin damn even though blocking it was COMPLETELY unconstitutional it was just right, the guys who locked up Pauline Hanson, the guys who fined those record labels, the guys who don't give a DAMN about what the big guys say about what you can and can't do with your own stuff. They make me proud to be an Australian,

    Even though in Australia it is unpatriotic to be patriotic (or at least you are judged to be a weeny if you are). It is times like this when I would like to press my hand to my chest, salute our crappy, halfarsely designed flag, scull my VB (not Fosters, YUCK!) and sing "Advance Australia Fair" at the top of my voice (even though it was written by white supremists, at least it is not about a suicidal sheep duffer).

    --
    When Argumentum ad Hominem falls short, try Argumentum ad Matrem
  21. Australia, please hit them harder. by emil · · Score: 4, Interesting

    I am a U.S. Citizen, and I would like nothing more than to see all members of the RIAA and the MPAA dry up and blow away. I am certainly not alone in this view.

    I look upon the recent financial woes of many of these corporations with schadenfreude - pleasure at the woes of another.

    These organizations are making the US into a police state. They have orchistrated a coordinated attack upon our Bill of Rights, and they make a mockery of copyright law.

    That they are suffering now is no great surprise. May it continue.

  22. ACCC et al.. by jamesjw · · Score: 3, Informative

    The ACCC (Australian Competition and Consumer Comission) http://www.accc.gov.au has been lobbying for the right of DVD and Sony Playstation owners to import discs from other regions, see: ACCC Defends the Rights of Playstation Owners

    I know that in the case of Playstation discs, Sony won a case recently that basically has made modding Playstations in Australia for playing any kind of disc (pirate or import) illegal.
    But the DVD Region code issue has been in the press here alot, IANAL but I believe due to the actions of the ACCC, Multi region DVD players here are quite common in the retail market to give consumers choice, I guess its up to the DVD Player manifacturer weather they include the feature or not.

    Personally my PHILIPS DVD-707 is modded All region from the remote and I own a number of Region 1 titles that just arent available locally here.
    I'm all for import CD's too, alot of Japanese releases come with extra tracks and collectors packaging that if imports were banned, we'd never get to see (legally).


    To a point as a consumer, I dont mind if the disc costs me the same as here or even a bit extra, but we should get the choice to buy the product we want, expecially if the product offers features not included on the domestic release.

    Jim.

    --
    -- If at first you don't succeed, lie!
  23. CDs are CHEAP (to manufacture) in Australia by ahacop@wmuc.umd.edu · · Score: 3, Interesting

    I find it rather odd that imported CDs are cheaper in Australia.

    I run an independent record label and I get my CDs manufactured in Australia precisely because it is CHEAPER for me to do so!

  24. Free trade and parallel importation by Hamster+Lover · · Score: 3, Interesting

    "Mr Aldonis' comments came despite the US raising concerns about parallel importation legislation in its 2003 Foreign Trade Barriers report. Parallel importation permits the importation of a product by a person other than the local authorised distributor.

    The US Trade Representative warned parallel importation had led to increasing piracy of DVDs and VCDs."

    The US maintains that importing identical commerical copies of music or video from another country is equivalent to piracy? What balderdash.

    To put this is perspective, if a company in China found a better deal on wheat in the Ukraine than what their "authorised distrubutor" of American wheat in China could offer them, then that company engaged in wheat piracy?

    I am of the mistaken belief that free trade was meant to foster GLOBAL trade, not regional cartels.

    Authorised Distributor is now another term for MONOPOLY. What a hypocrital nation the US has become.