Resellers have started boycotting Intel, HP products

Following last week raids and arrest of resellers in Chennai, Intel and HP are having a taste of their own acts as resellers have united together to boycott the products of the vendors. Last week, Intel and HP instigated a series of raids in Chennai, Hyderabad, Pune and Mumbai markets to put a check on re-packed, re-marked, gray and fake products. The raids had been carried out by a Mumbai-based private agency--Enforcers of Intellectual Property Rights (EIPR) along with local police in the respective markets. More than the raids, the arrest and remand of resellers had irked the channel community in the city who decided to boycott HP and Intel products saying the vendors are targeting the innocents while real culprits go scot-free. "We never argue that only genuine products are sold in the market. But, the vendors should have the guts to pinpoint and crack down the real culprits (who have political nexus also) instead of taking innocents for a ride. It is not that Intel or HP does not know who is involved in this kind of activities, but, they want to target innocents to create a fear in the market," alleged a key reseller in the Ritchie Street market who is also an active member in the local
association-ITTA.

Meanwhile, another reseller in the market questioned the genuineness of such raids and asked why Intel could not stop the gray market at the origin itself or at least in the custom level when products were being imported here. "We really wonder how products come straight to the market and why it is allowed up to this stage when they can put a check on the entry-gate itself," questioned a reseller.

According to market news, the resellers have stopped taking stock (of HP and Intel) from May 31, 2003 and only few resellers are allowed to take products since they had placed orders much before this incident. When asked about the support from resellers for such a move, the key resellers said they extend their full support until the problem has been solved amicably.

Meanwhile, the association which is driving this initiative said its first priority is to secure the release of the resellers moving the bail and they would take a final decision on boycotting the products by the end of this week.

"However, it is very tough to bring everyone together and make them accept some common solution," said a key association member. Meanwhile, the association is believed to be circulating some written communication to all the resellers requesting not to support Intel and HP in business until a solution is found out.

"There are many genuine resellers in the Ritchie Street market and these kind of raids affect the entire image of Ritchie Street," said a leading reseller in the market.

Meanwhile, in Hyderabad, the market is not responding to such a call for boycotting the products. According to a source very close to the association (Twin Cities Computer Dealers Association), the raids were carried out only on the insistence of the association to clean up the market. "We do not want to support gray and illegal business here and we are not interested to talk on boycotting. If somebody is proven culprit he has to bear the brunt," he said.

However, the four resellers who had been arrested and remanded in Hyderabad moved bail and were released already.

Commenting on the raids, an official release from Intel stated, the company has not seen a formal report of the action and evaluation of the products is still taking place. It also declined to comment on the final decision as investigation is going on. The release further stated, Intel has a very good relationship with local associations across the country. However, the raids are carried out by the law enforcement agencies and it is up to them to inform the local associations before such action is being taken out.

John Thomas, President, Computer Media Dealers Association-Pune said, "There is no boycott happening in Pune. It's all hyped up by media reports. Actually, the problem was solved the same day with the dealers when the raid was conducted.

There was not even a FIR filed. The CPU was genuine therefore the dealers were released immediately from the police custody." 

"Vendors should work with local associations in future while conducting such raids and the local association will also provide full support to catch the culprits, if found guilty. There is a code of conduct made by the association, which must be abided by the dealers," he added.

According to a Mumbai-based GID who wished anonymity, "Intel has done this with all good intentions, as this will be a warning to dealers dealing in fake CPUs. However, the way they carried out the raids created disgust among the channel community." He also stressed on the need of Intel working out on the price factor. There is a good price difference between imported and distributor product which Intel has to work out. 

However, most of the resellers in Mumbai are unaware of the raids.

S Gopikrishna and `Nancy Sudheer