Coimbatore resellers call for unity to fight HP

IT resellers operating in the Coimbatore market are calling for channels
unity to fight HP and other MNCs, following recent raids in the local IT market
searching for fake consumables. The reseller community is questioning the
genuineness of such raids saying it is just an arm-twisting act to instill fear
in the minds of the resellers.

About a month back, HP, through its agency–Enforcers of Intellectual
Property Rights (EIPR)–along with CB CID, had conducted raids in Coimbatore
market and took a couple of resellers–Shyam Electronics and Computer Shopee–into
custody for alleged dealing of fake products. While Computer Shopee had managed
to get anticipatory bail, Shyam Ele-ctronics had to serve the remand period.
Presently, the case is pending before the Judicial Magistrate II (Court) for
further hearing.

This is the second case in Coimbatore in the last eight months where earlier
Canon, along with the local police, took three resellers–Vijex, Galaxy and
Ashish Electro-nics–to the police station for dealing with fake products.
However, all the three resellers were released immediately as none of the seized
products was found fake at the police station. It may be recalled that HP and
Intel had conducted a series of similar raids during May 2003 in cities such as
Chennai, Hyderabad, Pune and Mumbai and some of the rese-llers were arrested and
reman-ded to police custody too.

According to market sour-ces, many such cases, even two years old, are
pending before the court of law for further hea-ring and justice and materials
worth several lakh seized dur-ing the operation are stuck. "We really
wonder whether HP and other MNC companies have a lab to test the seized products
and prove we are gui-lty. Moreover, as the case is pending before the court for
further direction, which takes several months and years, the seized products
would expire and get damaged, while what is there to prove by the compa-nies.
Normally, ink in the cartri-dges gets dry after a certain period which also
damages the complete cartridge," said a lea-ding reseller based out of
Coimbatore.

"I am sure HP and other MNC companies would not be able to prove us
guilty and this is just an arm-twisting act to create fear in the resellers’
mind. We really wonder why MNCs and other authorities target us while they
cannot stop it at the source itself. If government departments and enforcement
wings are strict, how would a grey product flow into the country or how would
fake products be manufactured and circulated here. Have they ever identified and
plugged it at the source?," questioned another reseller from the same
market who said innocents like him are being targeted.

With most of the resellers opining that a company/agency should testify and
prove the product to be fake at the place of seizure itself, are questioning the
genuineness of such raids. "How could we believe that a company or an
agency or the enforcement wing would not manipulate with our seized stocks? What
is the guarantee as cartridges do not have any serial number or other
identification details to follow up?," remarked a leading reseller based
out of Ritchie Street in Chennai.

Even at the various stages of trading between a distributor to authorized
reseller to other channels, it is very tough to identify the product as it does
not have any batch or serial number, say resellers.

"They give no chance for us to explain or prove that our products are
not fake. They come, they seize and they go," said another reseller in
Coim-batore. "Then we are summo-ned at the CB CID office or police station
where they file a FIR and take us into the custody under the clause–Under
reas-onable suspicion the investiga-ting officer can remand." However, many
resellers feel the arrest happens under the influence of companies with the
department officials. "We know how it works," he added.

During the recent raid, the officials have ‘seized’ over one lakh rupees
worth of material from both the resellers in Coimbatore. "Normally, in any
raids, we don’t get our stocks back and it can be treated as a loss for
us," said a reseller. "We can file a damage suit and defamation case
to make up our loses, but only when the present case is won, which will take
ages." Confirming the raids, Edward Rodrick, Director (Operations), EIPR,
said, "All I can say is 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."

S Gopikrishna

Chennai