NEC agent takes legal action against supplier

NEC distributor NEC Technology Centre is proceeding with legal actions against its supplier, NEC Australia, over a distribution dispute, in spite of a request from NEC to put it off.

NEC distributor NEC Technology Centre is proceeding with legal actions against its supplier, NEC Australia, over a distribution dispute, in spite of a request from NEC to put it off.

“They panicked and asked us to hold off but we’re proceeding as planned,”says managing director Syd Borg.

Borg claims that NEC Australia broke an exclusive distribution agreement in late 1998 and took over its dealer channel six months ago. At a launch in November last year NEC announced the appointment of Christchurch-based distributor Insite Technology to handle its notebooks.

Anthony Brett, NEC product manager for distributor Insite Technology, says Insite was aware that NEC Technology Centre was a distributor. “But our agreement with NEC isn’t exclusive, so we have no problem with them distributing, too.”

That’s not good enough, says Borg. “Our agreement was exclusive, and in place until August 2000 and NEC is in breach of that.”

NEC Australia did not return calls from Computerworld by deadline.

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