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May 31, 1987


By CBR Staff Writer

IBM last week triumphantly won its point over its authorised dealers in the US that violate its rules against passing surplus Personal Computer inventory on to grey marketeers who then market the machines at bargain basement prices. The IBM victory was in a case brought against the company by Security Software, a company that formerly operated several Entr Computer Center franchises in New Jersey, and was struck off IBM’s list of authorised resellers after the company found evidence that the firm sold 79% of the 3,500 machines it took in 1984 on to deep discount outlets like 47th Street Photo in Manhattan. Security Software sued IBM in Federal District Court in Alexandria, Virginia, charging it with breach of contract, fraud, conspiracy to injure business, and violation of Federal racketeering laws (IBM? Racketeering? How could they!). Judge and jury found in favour of IBM on all the counts.

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