*NEWS*HP: SETTLEMENT IN GRAY MARKET CASE

[Anonymous]

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.

[Author]

March 16, 2006 at 11:30 AM