Imation sues Quantum for Antitrust

Updated Imation (a large maker of storage media) has slapped a lawsuit against Quantum (large maker of storage devices) for violations of the Sherman Antitrust Act.

In return Quantum has replied and implied that Imation is bitter about its failure to qualify its tape media product for use with its DLTtape drives and the lawsuit is a 'transparent' attempt to distract customers from this fact.

Imation believes that the big chiefs at Quantum are imitating tactics from Microsoft and dabbling in price fixing and conspiracy to monopolise the production and sale of data storage tape. At one point, Imation even refers to the vendor as a 'cartel' claiming to have proof of this. (see below)

Quantum seems to find the whole affair a bit of a joke, with the expected replies of the case being “completely without merit.” It then goes on to say how nice the company was to Imation, providing it with faith and care, as well as lavishing time and expense on it; at the end of it all, Imation failed to produce the goods and now seems to be really upset about everything. It goes on to call the cartel idea “preposterous.”

Imation has stated that it hopes for a settlement to the affair. ®

Update

In Imation's online documentation (it has prepared a whole 'feature' on the lawsuit, here) the company shows off an email from a Quantum exec, a Philip Ritti, to Imation exec Frank P. Russomanno. In the message, Ritti acknowledges Imation's efforts to prepare for DLTtape IV (Tape IV) qualification and wishes him well. He then goes on to make an offer for Fuji and Maxell (other Tape IV licensees) to sell their products to Imation at reduced prices; in exchange Imation would need to drop all plans regarding the manufacture of Tape IV products. In reply, Russomanno politely snubbed the offer and informed him that Imation would proceed with qualification. See the messages here.

Related Links

Exhibit to Complaint: E-mail From Quantum Executive
Imation Files Antitrust Lawsuit Against Quantum Corporation