Feeds

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

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

Security for virtualized datacentres

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
VMware's tool to harden virtual networks: a spreadsheet
NSX security guide lands in intriguing format
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.