Dell sues Tiger for selling used PCs as new
Dell is suing one of its former resellers, Tiger Direct, for "repeated and blatant violations" of its resale contract, including trademark infringement and selling used products from the computer manufacturer as new. Dell terminated its reseller agreement with Tiger in May 2007.
Neither Round Rock, Texas-headquartered Dell, nor Miami-based Tiger Direct, a fully-owned subsidiary of computer retailer Systemax, were willing to comment on the lawsuit.
In the suit (available here — caution, large file), filed April 17th in the U.S. District Court for the Southern District of New York, the computer giant is seeking three-times the profits from Tiger on products sold "as a result of defendant's wrongful actions" or three-times Dell's damages, whichever is greater, as well as asking for punitive damages and court costs and "other relief."
The suit details a number of alleged violations, including Tiger selling old or used Dell equipment as new, improper use of various Dell logos and branding apparatus, as well as selling products as covered by long-expired Dell warranties. Dell further alleges that Tiger used unclear marketing practices on its Web site, making it hard for consumers to distinguish if products were from Dell or Tiger.
Dell, according to the complaint, was rebuffed — partially or completely — in attempts to rectify the various issues with Tiger. "Dell has taken every step possible over the course of several years to avoid the need for court intervention," according to the suit. "Nevertheless, [Tiger] has ignored Dell's notices and demands and has refused to cease its blatant false representations and infringement of Dell's intellectual property rights."
Article Originally Printed in E-Scrap News.