Microsoft swoops on ITAC - again

Software giant given go-ahead to sell assets of illegal trader, two-and-a-half years after original settlement

Microsoft has achieved a second victory over defunct Manchester based sub-distributor ITAC.

Despite ITAC having to pay Microsoft £1m in damages in February 2006 for parallel importing and unlawful dealing of Microsoft software, the firm continued to trade with an unauthorised distributor in the Middle East.

Microsoft took further legal action against the sub-distributor and ITAC was again found libel for continuing to unlawfully trade.

Under the terms of the original agreement Microsoft was unable to discuss the details of the case, as the settlement included non-disclosure provisions.

However, as ITAC was in breach of the settlement by continuing to illegally trade, it has made the original non-disclosure clause invalid.

In March of this year of ITAC managing director Barry Omesuh filed for administration.

ITAC has yet to pay the £1m it agreed to pay to Microsoft in 2006 and, as a result, the court has granted Microsoft the sale of Barry Omesuh’s assets to receive the damages owed in full.

Michala Wardell, head of anti piracy at Microsoft UK, said: “Some people will probably be aware of the ITAC case, but will not know the real story behind it. Now that we are able to talk about it, it is great to see justice being done.

“As long as the likes of Omesuh and resellers such as ITAC remain in business, the profitability of honest resellers is under threat. This case against ITAC shows that Microsoft takes a zero tolerance approach to anyone who undermines the level playing field for our reseller community.”

In February 2006 ITAC and its directors countersued Microsoft for libel, claiming the vendor posted “accusations” on its web site and circulated them via a ‘media alert’ email to the UK IT trade channel.

Wardell added: “We caught ITAC trading illegally more than once which shows how determined we are to protect genuine, honest businesses from being undercut by unscrupulous traders.

“In today’s climate, we believe this is more important than ever, particularly when the culprits blatantly persist in their unlawful trading.”