CMDA sends legal notice to Samsung

Amrita Tejasvi, New Delhi, July 19

In response to the circular sent by Samsung to channel partners
across the country on the issue of gray market, the Computer Media Dealer
Association (CMDA) has sent a legal notice to Samsung stating that the company
needs to withdraw the alert. CMDA has informed that if the circular is not
withdrawn within two weeks of forwarding the notice they might take action
against Samsung in court.

The issue reared its head around two months back when Samsung
had taken an initiative to sensitize partners across the country on gray market
import and had alerted them about the threats it poses to the business. The
company had mentioned in its circular the illegality involved in gray-market
products and clarified that it might give rise to cause of action against the
dealer or its company under the laws of the land.

"We have forwarded the notice to Samsung and if they
disagree to our points then they will have to prove the basis on which it terms
import of genuine products as gray market. None of our members are in favor of
unauthorized business, but one cannot blindly follow monopolistic trade
practices," said Manoj Khanna, Secretary, CMDA.

Reacting to the legal notice sent by CMDA, R Zutshi, Deputy MD,
Samsung India said,"It is wrong to think that by merely paying applicable
custom duties and complying with the import formalities, all products entering
into the Indian territory 'automatically' become compliant with all products
and IPR related laws and regulations of India."

Zutshi confirmed that there is no such plan to withdraw the
educational letter as it is in the larger interest of the consumers and the
dealers only, and Samsung will continue its efforts to educate the channel
community to protect its customers and to maintain the quality and standards of
its products.

Reacting to the notice, Saket Kapur, Secretary, Progressive
Channel Association of Information Technology (PCAIT) said, "We want to
find a feasible solution to this issue. Very soon we are going to have a meeting
with the company. We want to sit and talk to Samsung about the issue and then
reach a

conclusion."

Compass, the computer association in Kolkata, clarified that it
has held regular meetings with Samsung after the alert was circulated and the
matter was closed now.

Chetan Shah, General Secretary of Mumbai-based association Trade
Association of Information Technology (TAIT), informed that they are soon going
to hold a meeting with members and then would come forward with their stand on
the issue.