Cisco issues warcry to counterfeit traders after Gen-X duo banned

Cisco says bans dished out to two directors of Manchester-based trader Gen-X IT should act as a warning to anyone dealing in counterfeit products.

The Insolvency Service announced today that Alan Gould and Kelley Stewart have each been banned for 12 years from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

The duo had already agreed to pay a seven-figure settlement to Cisco in 2018 after accepting that their company, Gen-X IT, had infringed Cisco's trade mark.

According to the Insolvency Service, Gen-X bought and sold an estimated 55,000 counterfeit computer products that infringed on the intellectual property rights of Cisco. According to Cisco's investigations, it bought these products from a third party, who in turn had purchased the counterfeit products from China.

Having turned over nearly £17m in 2014, Gen-X IT collapsed into administration in January 2016 under the weight of Cisco's litigation.

On 19 May 2020, the Secretary of State accepted disqualification undertakings from Gould and Stewart after they did not dispute that they had caused or allowed Gen-X IT "to trade with a lack of commercial probity", the Insolvency Service said.

Their bans came into effect on 8 June 2020.

Clamping down on grey and counterfeit traders emerged as a theme at Cisco's Partner Summit in November, with Cisco's global channel boss Oliver Tuszik opening up how he had lost "a big amount of money" to a rival that "did not play by the rules" while working at Computacenter Germany.

In the Insolvency Service's statement today, Neil Sheridan, head of global investigations for Cisco's Brand Protection team, said: "We are grateful to the Insolvency Service for their perseverance in this case, the outcome of which should be a warning to anyone trading in counterfeit products of any sort."

"We are committed to tackling both individuals and organisations that recklessly trade in counterfeit Cisco products and create significant risk to critical network infrastructure."

Rob Clarke, Chief Investigator for the Insolvency Service, added:

"Both Alan Gould and Kelley Stewart were fully aware GEN-X IT was importing and selling computer products that infringed on Cisco's intellectual property rights, which was a flagrant breach of an undertaking promising they would stop.

"Their conduct fell well short of what is expected of company directors. Alan Gould and Kelley Stewart's substantial disqualifications should serve as a stark warning to those who seek to gain a corporate advantage illegitimately that they could face a lengthy ban from limited liability trading."

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