CMDA sends legal notice to Samsung

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 CMDA has informed that if the circular is not withdrawn within two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.

R Zutshi, Deputy MD, Samsung India

“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.

Amrita Tejasvi