UK distie makes MS libel counterstrike

ITAC (UK) sues vendor in response to 'parallel import' allegations

A UK distributor is countersuing Microsoft for libel after the software giant issued a $7m civil case against it, alleging it has been selling "parallel import" software.

ITAC (UK) and its directors last week launched libel proceedings in the High Court against Microsoft Corp and Microsoft Ltd after it alleged the vendor had portrayed it as a 'rogue trader'.

The firm claimed Microsoft posted "accusations" on its web site and circulated them via a 'media alert' email to the UK IT trade channel. ITAC is also issuing proceedings against other channel firms and their staff, which have yet to be identified.

Last month, a document leaked to CRN revealed Microsoft had begun a $7m claim for alleged copyright and trademark infringement in the High Court against ITAC, because it believed the firm had been importing software from an unauthorised distributor in the Middle East.

At the time Alex Hilton, licence compliance manager at Microsoft said: "Parallel importing and breach of trademark and copyright are serious issues. Our priority is to protect the vast majority of our channel partners, which are operating legally."

However, William Lister, a partner at law firm Pannone and Partners, which is representing ITAC, told CRN last week: "It is clear that Microsoft's proceedings against ITAC are part of a much-publicised worldwide campaign to thwart alleged grey importers.

"ITAC strenuously denies the allegations and is vigorously defending the proceedings."

Over two years ago Microsoft launched more than 1,000 legal cases against UK resellers.

Microsoft declined to comment on the ITAC developments at this stage.

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