Nearly three years after Microsoft took downManchester-based reseller ITAC for unlawful grey trading in its software(MicroScope 30 January 2006), Redmondhas reported more details of the February 2006 case, revealing ITAC continuedto trade illegally, flouting the terms of its settlement with Microsoft.
At the time, ITAC attempted to take Microsoft to courtitself for libel after being accused of grey trading, which for a timethreatened to blow the concept of a ‘name and shame’ policy out of the water.
Non-disclosure agreements have prevented either party fromrevealing the full extent of the settlement, which ended with ITAC and itsmanaging director, Barry Omesuh, agreeing to pay Microsoft £1m in damages.
Microsoft said ITAC not only continued to trade illegallydespite having promised not to, breaching the terms of the settlement, but alsodid not pay the £1m owed. As a result, Microsoft has announced, it has nowforced the sale of Omesuh’s assets to recover the funds.
Microsoft UKhead of anti-piracy Michala Wardell said: “Some people will be aware of theITAC case but won’t know the real story behind it. As long as the likes ofOmesuh and resellers such as ITAC remain in business, the profitability ofhonest resellers is under threat.
“This case shows that Microsoft takes a zero toleranceapproach to anyone who undermines the level playing field,” she added. “Wecaught ITAC trading illegally more than once which shows how determined we areto protect genuine, honest businesses from being undercut.”