Partners resent raids on consumables dealers

IT resellers operating in the Coimbatore market are calling for partners to unite to fight HP and other MNCs, following recent raids for fake consumables. The reseller community is questioning the authenticity of these raids saying it is just an arm-twisting strategy to instill fear in the channel's minds. "Until the channels and associations unite together, raids of this nature will continue to take place. It is time we gathered together and protested it," says a reseller from
Chennai.

HP, through Enforcers of Intellectual Property Rights (EIPR) and CB CID, had conducted raids in the Coimbatore market a month ago. Two resellers - Shyam Electronics and Computer Shoppe - were taken into custody for allegedly dealing in fake products. While Computer Shoppe managed to get an anticipatory bail, Shyam Electronics was remanded to custody. Presently, the case is pending before the Judicial Magistrate II (Court) for further hearing. 

Confirming the raids, EIPR Director-Operations, Edward Rodrick says, "We conducted the raid and seized some stocks from them. Now, the case is pending before the court and I would not be able to comment anything." When contacted, HP declined to comment about this raid and said that its APAC region anti-fraud cell had carried the raid.

Less than eight months ago, Canon, along with the local police, took three resellers - Vijex, Galaxy and Ashish Electronics - to the police station for dealing with fake products. However, all the three resellers were released immediately as the seized products were found to be genuine. It may be recalled that HP and Intel had conducted a series of similar raids in May 2003 in Chennai, Hyderabad, Pune and Mumbai, where some resellers were arrested and remanded to police custody.

According to market sources, even two-year old cases of this nature are pending before the court of law for further hearing. And goods worth several lakh seized during the operation are blocked in the judicial pipeline. 

During the recent Coimbatore raid, the officials 'seized' over Rs 1 lakh worth of material from the two resellers. "Normally, in any raids, we don't get our stocks back and it can be treated as a loss by us," states a reseller. "We can file a damage lawsuit and defamation case to make up for the losses, but only when the present case is won, which will take ages," he adds.

Partners feel that HP does not targets its authorized resellers, from whom the channel gets the stocks. "It always takes on resellers like us just because we deal with all products such as genuine cartridges, compatible cartridges and refilling services. They are unable to digest the fact they are losing business to compatible and refilling services," points out a Chennai reseller. 

"Do these vendors have a lab to test the seized products as counterfeits. Moreover, with the case in the court for years, the seized products would expire or get damaged. Who will help us recover this loss," questions a leading Coimbatore reseller.

"Why do MNCs and other authorities target us, instead of stopping the entry of gray products into the country? Have they ever identified and plugged it at the source?," asks another reseller.

Most resellers opine that a vendor/agency should testify and prove the product to be fake at the place of seizure itself. 

"They give us no chance to explain or prove that our products are not fake. They come, they seize and they go," laments another reseller in Coimbatore. "Then we are summoned at the CB CID office or police station where they file a FIR and take us into the custody." 

S GOPIKRISHAN

CHENNAI (CyberMedia News Service)