INDIA:SAMSUNG IN FIGHT OVER TONER IMPORTS

  • 536716a_green_sweep_web_banner_902x17712
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • Print
  • futor_902x177v7-tonernew
  • 161213_banner_futorag_902x177px
  • banner-01-26-17b
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • 2toner1-2
  • 4toner4
  • ink-direct-banner-902-x-177-v-1-2-big-banner-03-23-2017
Share

INDIA:SAMSUNG IN FIGHT OVER TONER IMPORTS

 user 2006-10-10 at 11:25:00 am Views: 52
  • #16770

    Channel ready to fight Samsung’s initiative on parallel imports
    Resellers
    feel they have the right to import products on which they pay
    appropriate duties to the government, on the other hand Samsung is
    engaging itself into a campaign in order to put a blemish on parallel
    import marketsAs the Korean electronics major Samsung Electronics moves
    ahead with its initiative to put tabs on parallel imports of toners,
    LCDs, HDDs and printers, the channel community is bracing up to fight
    for their right to import.With an aim to counter the growing menace of
    “grey market goods” also known as “parallel imports” in the Indian
    market, Samsung India Electronics Pvt. Ltd. along with its parent
    company Samsung Electronics Company Ltd. has initiated legal action
    under the trade mark law against distributors and sellers of “grey
    market” versions of its toner ink cartridges before the Delhi High
    Court in August 2006.As part of this initiative, the company has
    identified and taken legal action against certain dealers in India, who
    were found engaged in the business of pushing grey market
    goods.According to official spokesperson from Samsung, Justice
    Vikramjit Sen of the Delhi High Court, inter alia, granted ex-parte
    interim injunctions against 7 dealers across Delhi, Indore, Kolkata and
    Bangalore which includes Metro Technologies from Bangalore and Saboo
    Computers from Kolkata – restraining them importing, exporting,
    distributing, selling, advertising, directly or indirectly dealing in
    grey market ink cartridges/toners or any other products of the
    plaintiffs under the trademark “Samsung” or under any other mark as may
    be deceptively similar to the Plaintiffs’ amounting to infringement of
    the Plaintiffs’ registered trademarks.“The Judge was presented with the
    evidence that the Samsung toner ink cartridges were being illegally
    imported into India and that they were not authorized to be marketed
    and sold in the Indian market; that the said grey market toners did not
    conform to Indian labeling laws and regulations (which is an offence
    under Standard of Weights & Measures Act, 1976); and that the grey
    market toners were not supported by company warranties and replacement
    policies, thus creating deception and huge losses to the unsuspecting
    consumers,” the spokesperson from Samsung added.It is interesting to
    note that Samsung had moved to Court in the month of August in the face
    of customer complaints with faulty toner cartridges, that were clearly
    grey market imports.“This judgment is historic in the fact that it is
    the first judgment acknowledging the menace of parallel imports. For
    us, this judgement gives us a tool to ensure that the toners our
    customers get from dealers carry the appropriate warranties, being
    issued by SIEL. We will continue with our system of checks to ensure
    that this menace of grey market imports is countered as far as possible
    ” states Sanjay Sharma, VP-IT Business, Samsung India. Moving forward,
    the Company is planning to carry out similar initiatives for its
    checking parallel import for its Printers, LCD, OMS and HDD categories
    as well.

    What channel feel!
    While Samsung has gone ahead with
    its drive for putting an end to parallel imports, the channel community
    is not particularly amused by this move. Resellers engaged in import
    business feel that it is perfectly legal to import goods and global
    companies like Samsung should understand the market dynamics well
    before going all out against it.“We know that Samsung has named us but,
    we have nothing to do with imports. We are resellers in the Kolkata
    region. More so, when Samsung’s team came up to our office, they didn’t
    find anything. Even the high court commissioner came for checking and
    gave us his certificate after finding absolutely nothing. Samsung is
    just trying to mislead everyone here. They want to create panic in the
    market so that it becomes a difficult situation for importers,”
    informs, Rajesh Saboo, CEO at Kolkata based Saboo Computers. “We will
    certainly not sit idle on this issue. We will be taking this up with
    our association here. See, Samsung as a company will need to understand
    that anyone can import anything in India, its all legal and you pay
    duties to the government for importing products. So the whole issue is
    baseless as far as legalities are concerned,” he added.Speaking about
    the market of products being imported from other countries, Manoj
    Gupta, CEO at Delhi based Fortune Marketing said that there are a lot
    of companies who work towards diminishing the parallel imports market.
    “Some companies do tend to work towards reducing the parallel imports
    market, but this does not mean that importing goods is illegal. Since
    importing a genuine product is absolutely legal, I don’t think that
    there is any issue about this,” he added.Expressing his concern for the
    channel community, KVR Menon, CEO at Hyderabad based Orient Business
    Services said that it is absolutely legal to import products and goods
    and big MNCs will never be able to abolish the parallel channel.“If I
    am importing products and goods, I am doing it by paying duty at the
    customs. It is legal. But yes the products should be genuine and not
    counterfeit ones. So even if a big vendor like Samsung decides to do
    something about this situation, they should block the service of any
    imported products. They just cannot stand against the reselling of
    imported or gray market products,” he added.India has witnessed
    an increasing influx of grey-market goods, which pose serious threat to
    brand owners, such as Samsung. Grey-market goods usually enter the
    Indian market from China, Thailand, Singapore and the Middle East. This
    form of unauthorized parallel trading not only undermines the
    legitimate differential pricing structures of companies, but also
    compromises their established distribution standards with vendors and,
    of course, their reputation among customers.