*NEWS*HP: SETTLEMENT IN GRAY MARKET CASE

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*NEWS*HP: SETTLEMENT IN GRAY MARKET CASE

 user 2006-03-16 at 11:30:00 am Views: 64
  • #14836

    HP Reaches Settlement in Gray Market Case with P & E Distribution
    March
    PALO ALTO, Calif.–March  2006–HP  today announced it has settled with
    P & E Distributing and its president, David Welker, two defendants
    in gray market litigation that HP filed in August 2004 in a Tennessee
    federal court.
    HP sought to recover more than $8.6 million in
    pricing discounts for computer equipment that a former Tennessee
    reseller, Capital City Micro, Inc., purchased based on
    misrepresentations that the equipment would be resold to P & E
    Distributing of Kentucky.
    HP continues to pursue its claims against Capital City Micro and its president, Martin Meeks.
    Capital
    City Micro was an authorized reseller of HP and Compaq products and
    made unauthorized sales in 2001 and 2002. HP discovered the abuse and
    terminated its relationship with Capital City Micro. Shortly
    thereafter, Capital City Micro became a reseller with Compaq Computer
    Corp. and continued to make unauthorized sales of Compaq products.
    After HP and Compaq merged in May 2002, HP stopped all dealings with
    Capital City Micro.
    “HP is committed to supporting our authorized
    business partners and protecting our mutual customers,” said John
    Thompson, vice president and general manager, Solution Partners
    Organization — Americas, HP. “And we’re committed to prosecuting those
    parties selling HP product through unauthorized channels.”
    To better
    protect legitimate channel partners and joint customers, HP is focusing
    on three key initiatives: education and training; tightening business
    practices and controls; and taking appropriate action in relation to
    resellers who violate terms of their authorized reseller agreements.
    HP
    is a founding member of the Alliance for Gray Market and Counterfeit
    Abatement, a global association formed in September 2001 composed of
    leading technology companies committed to addressing the global impact
    of the gray marketing and counterfeiting of technology products.