HP Vs Techzone: SC says consumer the ultimate beneficiary in parallel competition

Friday, 5 October 2012 00:01 - - {{hitsCtrl.values.hits}}

By T. Farook Thajudeen

Making a landmark order in an Intellectual Property Law case, the Supreme Court ruled that importing of genuine HP products through alternative sources on a prima facia basis sustain the specific provisions of the Intellectual Property Law of permitting parallel imports.

The Supreme Court made this order in considering the submissions made by the counsel for the parties, thus suspending the injunctions granted by the Commercial High Court in favour of Hewlett Packard against Techzone restraining from importing of genuine HP products including laptops and notebooks of latest specifications and models through different channels which are not made available to the Sri Lankan consumer by Hewlett Packard.

The three bench Supreme Court Judges Rahini Amarasinghe, Chandra Ekanayake and Satya Hettige, while suspending the injunctions that prevented Tech Information Solutions (‘Techzone’) from importing genuine HP products through alternative sources, ruled that on prima-facie the specific provisions of Intellectual Property law permits parallel imports, hence dismissed the injunctions granted by the Commercial High Court of Colombo in favour of Hewlett Packard AP (Pvt) Ltd.

Techzone, a leading importer and reseller of laptops, notebook, desktops and other IT related peripherals of global brands including HP branded products in Sri Lanka sought an injunction from Commercial High Court restraining Hewlett Packard Personal Systems Group against engaging in derogative and disparaging advertising campaign thwarting Teckzone.

However the High Court refused to grant the relief sought by Techzone and restrained Techzone by several interim injunctions preventing Techzone from importing/distributing and/or selling through alterative sources the HP products that are not available with Hewlett Packard Sri Lanka

The petitioner Techzone appealed against the High Court order and Counsel S.A. Parathalingam P.C appearing with M.U.M. Ali Sabry and Ruwantha Cooray instructed by Paul Rathnayake Associates appearing for Tech Information Solution (Techzone) submitted that parallel importation of genuine products should not be prevented other than through channel distributors in which the end result is the consumer who would be the ultimate beneficiary of the Competition in related to pricing, quality and variety of goods in offer.

The Supreme Court hearing the submissions made by the parties suspended the injunctions granted in favour of Hewlett Packard thus permitting Techzone for parallel importing of genuine HP products including laptops and notebooks of latest specifications and models not made available to the Sri Lankan consumer by HP Sri Lanka through different channels

Avindra Rodrigo instructed by F.J. & G. De Seram appeared for HP.