CMDA takes Samsung to court

Amrita Tejasvi

New Delhi: In a bid to seek a solution for the issue of parallel import
raised by Samsung few months back Computer Media Dealer's Association has
taken the matter to Monopolistic and Restrictive Trade Practices (MRTP)
Commission. The association and Samsung along with MAIT appeared before the
court on December 4th for the hearing of the case. CMDA had recently filed the
petition against the company.

The Monopolistic and Restrictive Trade Practices (MRTP) commission is an
important organ of the department of company Affairs and its main function is to
enquire into and take action in respect of unfair trade practices and
restrictive trade practices.

During the first hearing, CMDA put forward the case before the court
demanding Samsung to withdraw its 'educational alert' on parallel import on
the ground that such activities implies to monopolistic trade practice by the
vendor. CMDA also said that parallel import does not involve illegal activities
like counterfeit and the trade is done within the legal fence of the country,
thereby any law of the land is not violated.

“We have been saying for long that parallel import is not an illegal
activity and our only demand is that Samsung should withdraw its alert so that
one could practice free trade. This indicates the intention of the company to
rule the market through monopoly. Today was the first hearing and we have put
the matter before the court. We are hoping that whatever judgment comes, it
favors the channel partners and customers. We will accept whatever is directed
by jurisdiction,” said Puneet Singhal, President of New Delhi based CMDA.

The court has issued a notice to Samsung to file their reply before the next
date of hearing that has been fixed in the end of January 2008. The association
is hoping that the court would direct Samsung to withdraw its alert.

Singhal also said that the association had initially tried to pacify the
issue through mutual dialogue but since the vendor was rigid on its terms, it
had to take the matter to the court so that they could not breach the free trade
practice in the country. Samsung, however, preferred to remain silent at this
stage but clarified that it still supports its stand over the issue of gray
market.

In May this year Samsung had mentioned in its educational alert circulated to
channel partners about the illegality involved with gray-market products and had
clarified that it might give rise to cause of action against the dealer or its
company under the laws of the land.

CMDA had also sent a legal notice to Samsung in July this year asking the
company to withdraw the alert within two weeks or else it would take proceedings
against the company in court. In reply, Samsung had confirmed that had no
intention of withdrawing the educational letter as it was in the larger interest
of the consumers and the dealers and indicated that it would continue its
efforts to educate the channel community.