Consumers will have to pay an extra €3 for each CD that they purchase from the online retailer CDWow.ie from next Sunday.
The popular online retailer,which sells cheap CDs, DVDs and video games to tens of thousands of Irish customers, will increase its prices to comply with a legal settlement that it reached yesterday with the Irish Recording Music Association.
The association had alleged that CDWow.ie was in breach of import regulations by sourcing CDs from outside the EU at low cost and selling them on to Irish and British consumers cheaply.
The trade body, which represents the music industry, sued CDWow for damages in the High Court last year.
This followed legal proceedings taken by the British Phonographic Industry against CD Wow's British arm.
In a joint press release yesterday, the parties to the dispute said CDWow had agreed that it would not sell CDs that had been first placed on the market outside Europe to Irish and British customers. It will only sell CDs that have first been placed on the European market to UK and Irish customers, the statement said.
The terms of the legal settlement were not disclosed and it remains unclear if CDWow paid damages to the trade bodies.
CDWow's founder, Mr Philip Robinson, told The Irish Times yesterday that CDWow.ie would have to add a €3 surcharge to the price of each CD because of the legal settlement. This surcharge will take effect from next Sunday on all purchases of CDs.
However, it will not affect the price of DVDs or video games.
It is likely to increase the price of CDs on the CDWow website to almost €17, up from the current price of about €14.
"I am sad for the Irish and British consumer," Mr Robinson said.
The Irish Recording Music Association estimates that CDWow is generating annual sales worth between € 6-10 million from Irish consumers.
CDWow, which is based in Britain, is estimated to have an annual turnover of about £100 million sterling.