Independiente Ltd & ots v Music Trading On-line (HK) Ltd & ots* (Evans-Lombe J; [2007] EWHC 533 (Ch); 20.03.07) – Reported at [2007] FSR 525 (no. 21) and therefore only a short summary is provided

The claimants were manufacturers and suppliers of music records. The first defendant operated a website from which CDs and DVDs could be purchased. The parties had compromised an earlier dispute under which the defendants undertook not to supply any non-EEA CDs or DVDs from anywhere in the world to any customer in the UK. The first defendant sent non-EEA CDs and DVDs to customers in the UK from HK, but claimed that since, under its standard terms and conditions, property passed to the customer when it handed the CD or DVD to the HK postal authority, the customer was the one who put the product into circulation the UK. It was held that this proposition was incorrect; delivery took place when the CD or DVD was delivered to the customer in the UK under Section 32(4) of the Sale of Goods Act 1979. Consequently, the first defendant was found to be in breach of the undertaking, in contempt of court and an order for an enquiry as to damages was made.