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PolyGram Announces Dismissal of Antitrust Lawsuit.

NEW YORK--(BUSINESS WIRE)--Aug. 28, 1996--PolyGram Group Distribution (PGD) announced today the dismissal of several antitrust lawsuits filed by Target Stores, Checkpoint Systems, Inc. and others in exchange for PGD's voluntary agreement to temporarily suspend the company's source tagging effort. The duration of the suspension will be determined solely by PGD, which paid no monies to any of the plaintiffs in connection with the dismissals. This announcement was made today by PGD's President, Jim Caparro.

In an effort to help its retail customer base sustain financial health and combat the problem of shoplifting, in July 1996, PGD became the first distributor of recorded music products to implement EAS (electronic article surveillance) source tagging on compact discs. PGD adopted the EAS antitheft technology used by more of PGD's customers and recommended by the NARM (National Association of Recording Merchandisers) guidelines.

On making this announcement, Mr. Caparro said, "We are confident our method of analyzing and choosing the available technology was well- executed and clearly within the law. However, any innovation which disrupts the smooth flow of business is counterproductive." He added, "While we are still convinced about the merits of source tagging and committed to EAS implementation as well as all other measures necessary to respond to our customers' needs, we are adopting this temporary suspension in light of the confusion and friction which followed our announcement. Once source tagging issues are more fully presented and developed, we will then determine the best way to proceed."

Mr. Caparro noted that PGD had retained the ability to adopt any type of source tagging program it deemed in the best interest of PGD and its customers, at any time it chooses to do so.

PolyGram Group Distribution (PGD) is the full service home entertainment distribution company in the U.S. for PolyGram, the global music and entertainment group. Headquartered in New York, PGD has four regional offices and six sales centers located across the country and a main distribution center located in Indianapolis.

CONTACT: Dawn Bridges

Senior Vice President, Corporate Communications

212/333-8357
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Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Aug 28, 1996
Words:341
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