Dell vs reseller lawsuit
May 2, 2009 4:14:24 GMT
Post by CharlieChomper on May 2, 2009 4:14:24 GMT
Most of you outside the US and possibly Canada would not have reason to have heard of this company, most likely. Even within the US or Canada, unless you purchase components or computers via mail order catalogs or online you may not have heard of them (it should be noted that this company's customer base actually mostly consists of end users/consumers rather than actual self-professed "geeks" (techies and techs) or people within the industry who often tend to favor other sites and resources for various reasons)
However, the gist of this is that Dell had allowed (via a licensing agreement) the online site, TigerDirect, to resell some of their systems--the catch was that these same systems were old, often outdated, and no longer supported by the company.
However, Tiger Direct marketed them as "new" and even began to call themselves a "Dell Superstore"/"Dell Monitor shop"/"Dell Representative" even though it wasn't true. They even went so far as to make a claim with these systems that Dell would somehow provide the customer with free support for three months (which was impossible as, again, these same systems were no longer supported by Dell even before they were offered to Tiger)--that, along with calls from potential customers demanding that Dell price match the new systems that the themselves were selling against these old systems (and inquiring how it was possible for Tiger Direct to sell Dell computers for such a low price), was a big part of what triggered this lawsuit.
The company had apparently sent a cease and desist letter as early as December of last year (it should be noted that Tiger Direct was only licensed to sell these computers until May 2007) and received no reply. They sent five more letters since that time, with the last one receiving a reply back to the effect of Tiger's reviewing the situation and supposedly getting back to Dell about it (this was back in January). Since that time, there had been no response back and Dell filed the lawsuit.
They're currently seeking an injunction against Tiger Direct in using any of their materials and hopes in destroying the remaining Dell computers, parts, and accessories (especially anything which may have Dell's logo on it), etc. along with suing for unspecified damages and three times the profits that TigerDirect may have made on the sales of these systems.
However, the gist of this is that Dell had allowed (via a licensing agreement) the online site, TigerDirect, to resell some of their systems--the catch was that these same systems were old, often outdated, and no longer supported by the company.
However, Tiger Direct marketed them as "new" and even began to call themselves a "Dell Superstore"/"Dell Monitor shop"/"Dell Representative" even though it wasn't true. They even went so far as to make a claim with these systems that Dell would somehow provide the customer with free support for three months (which was impossible as, again, these same systems were no longer supported by Dell even before they were offered to Tiger)--that, along with calls from potential customers demanding that Dell price match the new systems that the themselves were selling against these old systems (and inquiring how it was possible for Tiger Direct to sell Dell computers for such a low price), was a big part of what triggered this lawsuit.
The company had apparently sent a cease and desist letter as early as December of last year (it should be noted that Tiger Direct was only licensed to sell these computers until May 2007) and received no reply. They sent five more letters since that time, with the last one receiving a reply back to the effect of Tiger's reviewing the situation and supposedly getting back to Dell about it (this was back in January). Since that time, there had been no response back and Dell filed the lawsuit.
They're currently seeking an injunction against Tiger Direct in using any of their materials and hopes in destroying the remaining Dell computers, parts, and accessories (especially anything which may have Dell's logo on it), etc. along with suing for unspecified damages and three times the profits that TigerDirect may have made on the sales of these systems.
