Feeds

M-Tech Data: Grey import battle with Oracle has ruined us

Manchester-based firm shuts up shop after being 'crippled' by legal costs

Intelligent flash storage arrays

M-Tech Data's boss has claimed the "crippling" legal bill for its spat with Oracle over allegations of parallel importing left management with no option but to shut up shop.

The Manchester-based distie was involved in a long running case with Sun Microsoftsystems, and subsequently the vendor's new parent Oracle over the importing of drives to the EU from China, Chile and the US.

The Supreme Court ruled in Oracle's favour in June, dismissing M-Tech's defence that the enterprise vendor had withheld the serial numbers database which made determining provenance of kit impossible.

Howard Lawton, M-Tech director claimed: "Effectively Oracle put us out of business".

He said the operation had been "in decline" since the legal wrangling first began in 2009.

"Once we'd lost the case we had no where else to go, the costs crippled us and we couldn't find a way forward," he told The Channel.

Lawton did not detail the exact costs but described them as "substantial".

The court battle shifted in Oracle's favour in 2009 and then in 2010 the Court of Appeals upheld M-Tech's claim that it had been unable to verify where the kit was initially sold. At the time, the court ordered the vendor to repay M-Tech's costs.

But in the final twist in June this year, the Supreme Court ruled that the most important factor was that M-Tech had infringed Sun's trademark. At the time, Harvey Stringfellow, lawyer for M-Tech told The Channel that he was "shocked and disappointed" by the ruling which he said would have a "major impact on the independent [traders]".

Pete Broadbent, administrator at business advisor Duff & Phelps is handling the M Tech case, and a creditors' meeting has been called for 17 August with a view to liquidating the distributor.

M-Tech was established in 1994 and supplies IT systems and components from vendors including HP, Cisco, IBM and Lenovo. Interestingly it no longer includes Oracle/Sun in its portfolio.

Oracle was unavailable to comment at the time of writing. ®

Internet Security Threat Report 2014

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?