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Category: WTO Sub-category: Intellectual Property
Document type: news
Dell Inc.'s (DELL) Indian unit confirmed on 10th April 2012 that it received an order from the customs department, telling the company to pay damages to three parallel importers of the U.S. major's computers, suggests the report.
Dell didn't exactly say what the order was about. However, the Press Trust of India on the previous day said the department has ordered Dell's Indian unit to pay warehousing and other charges to the importers.
The reason behind it being Dell's invoking intellectual copyright issues that lead the customs department to hold the consignments.
The department found that around 500 Dell laptops imported by Venktron Digital Systems, Sapphire Micro Systems and Momentum Technologies from China were "genuine and not prohibited" by law.
Dell said in its statement that it is studying the department's order.
Moreover, it also stated that importing Dell's products through unauthorized distributors is an infringement of the company's trademark registered in India and may endanger its brand reputation.
The company further claimed that such "unauthorized" imports are not adequately supported by warranties and cause serious losses to its customers in India.
Dell assembles most of its computer units locally by importing raw materials from global markets.
The company, with a market share of 15.5% in the October-December quarter, is the number one PC maker in India, according to the research firm Gartner Inc.
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Parallel imports is a non-counterfeit product imported from another country without the permission of the intellectual property owner. Parallel imports are often referred to as grey product, and are implicated in issues of international trade, and intellectual property.
Dell, Inc. is an American multinational computer technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services.
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