Reseller caught in HP-Autonomy saga speaks out

MicroTech warns the channel to beware of vendors as it files lawsuit against HP

HP should sue MicroTech rather than make accusations, Lanny Davis, an attorney working with the reseller in its lawsuit against HP, has told CRN sister site Channelnomics.

The comments come in light of MicroTech filing a lawsuit against HP on Monday claiming that it paid Autonomy, which HP acquired in 2011, for software for deals that MicroTech thought were confirmed and set to close.

But the deals, with the Vatican Library in 2010 and HP in 2011 before its acquisition of Autonomy, never closed.

MicroTech also claims it never received the software and now wants a $16.5m (£10.63m) refund from HP.

In March, HP filed a lawsuit against former heads at Autonomy claiming the software company inflated its revenue and exaggerated its growth rate and profits, Davis pointed out. In addition, HP accused MicroTech and other companies for "contrived" transactions aiding in Autonomy's alleged deception.

Davis thinks HP is just trying to shift the focus from its dispute with MicroTech over the two deals the reseller made with Autonomy that never closed.

"If HP is making accusations against MicroTech and drags us into their argument in their litigation in London against former owners of Autonomy, then prove it. Sue us. But don't make the accusation as a way of changing the subject," Davis told Channelnomics.

According to Davis, Monday's lawsuit and the case it refers to teaches a lesson in trust that all resellers should learn.

"This lesson that MicroTech has learned is a lesson that all resellers probably already know but should learn all over again: Don't trust the good faith of the original seller of a product when you're the reseller because [what they say] may not be the case," he said.

Instead, Davis said resellers should get in touch with the end users.

"Confirm the end user's intent to repurchase from you as a reseller," he explained. "If you assume good faith, you may get burned. And if you want an example of getting burned, look at what happened to MicroTech."

When a reseller takes on a big vendor like HP, the result is a "classic" David versus Goliath scenario, according to Davis.

"The owner of this company is a real human being - not a board of directors, not the shareholders - one man, who is a disabled veteran," Davis said in reference to Tony Jimenez, president and CEO of MicroTech. "Tony is not walking away from the gigantic HP on the issue of principle. The money or the product - HP can't have both."

Davis said Jimenez is willing to drop the lawsuit if HP allows his company to re-license the software for a "reasonable" amount of time.