Grey market trading 'continues to plague the IT industry' - trade body

AGMA claims grey market trading is on the rise

Grey market trading is a "plague" on the IT industry and becoming more prominent, according to trade body Alliance for Gray Market and Counterfeit Abatement (AGMA).

AGMA claims that billions of dollars' worth of the tech products are sold through the grey market every year, with the figure growing year on year.

The body defines grey market goods as genuine, branded products that are sold through unauthorised channels or imported without the consent of the manufacturer.

AGMA's members include Cisco, HPE, HP, IBM and Microsoft.

In a report, the association said that grey market trading will continue to "raise costs, erode margins and damage brand reputations".

It claimed that recent decisions in the US Supreme Court have hamstrung manufacturers because they have limited the extent to which IP law can be applied to grey products.

Vendors have been encouraged by AGMA to create products with material differences in different regions, to make it clear when a product has been sold in a region that it should not have been. It also highlighted the importance of serial numbers.

IT manufacturers have clamped down on grey trading over recent years, with Cisco awarded a ‘seven-figure sum' in a case against defunct Manchester-based reseller Gen-X IT last year.