Law & Order

AccessData Ploughs $6M Into Channel (0)May 20, 2013E-discovery and cyber-forensics vendor AccessData is injecting $6M into its channel this year as it ramps up its indirect business.
Dell Accuses Drive Vendors of Price-fixing Scandal (0)May 14, 2013Dell seeks damages as it claims it paid over the odds for optical disk drives from Samsung, Sony, Hitachi and others.
Survey: Bright Outlook for Business and Tech (0)May 14, 2013A survey by Dell and Intel finds startups and small businesses in the U.S. that harbor a bright outlook for sales and finances in the coming year are looking to technology investments to fuel their continued growth.
Gates Like Tablets, Taxes; Dreads China (0)May 8, 2013Despite rampant software piracy abroad and withering competition and market churn at home, Bill Gates remains bullish on the technology industry in general and, in particular, Microsoft’s tablet and operating system efforts.
Zenith Infotech Confident in Appeal Chances (0)May 7, 2013Zenith Infotech is scheduled to go before India regulators to appeal the barring of its officers from trading in the public stock markets. The company’s chairman, Rajkumar Saraf, says the Securities and Exchange Board of India overstepped its bounds. A loss could prove devastating to the cloud computing company.
Dell Reseller in Dutch Over Sales to Syria (0)May 6, 2013Dell is scrambling to explain how one of its largest Middle East resellers managed to sell hundreds of Dell laptops, tablets and desktop PCs to the embattled Syrian government in violation of long-standing trade embargoes.
New Schumer Bill Takes Aim at Patent Trolls (0)May 3, 2013We already know what companies like Google Inc. and Cisco Systems Inc. think of patent trolling. Turns out, some politicians aren’t particularly fond of the questionable practice, either.
Obama’s FCC Nominee Likely Good for Channel (0)May 2, 2013Tom Wheeler may be better known to wonky Beltway insiders than to those in technology, but his appointment Wednesday by Pres. Obama to head the FCC should be good news for the channel.
Blue Coat Distributor Fined for Sales in Syria (0)April 26, 2013The security vendor today issued a statement acknowledging that Dubai-based Computerlinks ZFCO has been penalized for the "unlawful diversion of Blue Coat ProxySG appliances to Syria" in 2011.
Investors’ Lawyers Probe Tech Data Books (0)April 24, 2013A law firm has launched an investigation on behalf of a group of top investors to ascertain whether a number of Tech Data officers and directors "breached their fiduciary duties."
Huawei No Longer Interested in U.S. Market (0)April 24, 2013After months of allegations and denials regarding its potential as a threat to U.S. national security, Huawei officials say they are giving up efforts to expand into the U.S. market and will instead focus on 'the rest of the world.'
Data Breach Notification Laws Hinder SMBs (0)April 19, 2013Various state-level laws surrounding consumer notification in the event of a data breach has complicated the system and may hinder SMBs looking to broaden their business into wider areas. What's needed is a national law to cover all notification measures.
Zenith Wins Short Repreive From Regulators (0)April 17, 2013Zenith Infotech has a little more time to come up with the money it needs to satisfy India regulators. The Securities Appellate Tribunal, the stock market regulatory equivalent to an appeals court, granted the cloud computing company a temporary stay until the next hearing in May.
Immigration Reform Could Roil IT Workforce (1)April 16, 2013Proposed changes to the immigration laws could be a boon to talent-starved American tech companies, but could punish foreign firms – particularly the large Indian service providers with operations in the U.S. -- who currently employ large numbers of foreign IT specialists.
ICANN Ruling Protects ‘.cloud’ for the Masses (0)April 15, 2013The Cloud Industry Forum (CIF) has welcomed a decision which could see the exclusive sale of new Web domains such as ".cloud" scrapped.
Whitman Says HP Firmly Committed to Autonomy (0)April 12, 2013It’s easy to imagine a list of words Hewlett-Packard CEO Meg Whitman might have used to describe Autonomy, the U.K. software firm HP claims it was duped into paying several billion dollars too much for in 2011, but would “magical” have come to mind?
U.S. Pressures Sprint, SoftBank to Ditch Huawei (1)April 1, 2013Sprint and SoftBank are prepared to promise that if the $20 billion buyout is approved, they will rid their systems of telecommunications gear made by Chinese manufacturer and perceived espionage threat Huawei Technologies Ltd. and give U.S. authorities – including national security officials -- unprecedented visibility into any future network improvements.
Supreme Court Ruling a Victory for Channel (0)March 28, 2013By a vote of 6-3, the justices ruled that the so-called “First Sale Doctrine” applies to all copyrighted material regardless of where it was created. The case held the potential for chilling and dire implications for the resale of anything that includes protected components including software and multi-sourced technology equipment.
Foundry CIO Facing Charges in Brocade Deal (0)March 27, 2013The SEC says former Foundry CIO David Riley tipped off a pair of friends who worked as investment professionals days before the Brocade deal was announced in July 2008.
Cisco Hit With $70M Fine for Duping Partner (0)March 25, 2013XpertUniverse claimed it was teased with the prospect of becoming part of Cisco SolutionsPlus, a reseller program designed to augment Cisco's advanced technology products to create complete solutions by placing select products on the Cisco price list and allowing them to be sold by Cisco sales teams and channel partners.
Lawyers Probe Tech Data Accounting Dust Up (0)March 25, 2013Multiple law firms are investigating whether Tech Data or its executives violated any state or federal security laws in light of the accounting imbroglio it admitted to late last week.
Kaspersky, INTERPOL Join Hands to Fight Crime (1)March 22, 2013After years of goading international law enforcement officials over the need for a global effort to fight cybercrime, noted security expert turned software mogul Eugene Kaspersky is throwing his company’s efforts into a new joint project with INTERPOL aimed at thwarting cybercriminals.
The Taxman Cometh for Your Cloud Services (1)March 21, 2013If you think cloud computing services can seem amorphous and hard to define, just wait until tax auditors start to dig into sales and income derived from them, experts warn.
HP Board Members Survive Ouster Attempt (0)March 21, 2013Chairman Ray Lane and longest-serving duo Thompson and Hammergreen narrowly survive shareholder vote following calls for their dismissal
Microsoft Hit With Foreign Bribery Allegations (0)March 20, 2013Two federal agencies are investigating allegations that Microsoft representatives and reseller partners bribed foreign government officials to drum up software sales in China, Italy and Romania.
U.K. Agency Probes Alleged Autonomy Fraud (0)March 13, 2013Britain’s Serious Fraud Office has opened an investigation into the alleged accounting scandal at the former Autonomy Corp., now a unit within Hewlett-Packard.
Autonomy’s Lynch Lawyers Up for HP Fight (0)March 6, 2013Lynch has hired Reid Weingarten of Steptoe & Johnson, whose list of previous defendants include director Roman Polanski and Enron executive Richard Causey.
Brocade Blames CA Tax Switch for Q1 Loss (0)February 18, 2013The San Jose, Calif.-based storage and networking vendor says a change in its home state's tax laws resulted in a first-quarter loss of $21 million.
Judge Sides With Wi-Fi Patent Troll Over Cisco (2)February 6, 2013The federal case that was supposed to bring a halt to patent troll Innovatio’s ongoing shakedown of hotels, restaurants, and coffee shops took a strange turn when a federal judge threw out racketeering allegations brought by Cisco, Motorola and Netgear.
Study: Most Unprepared for eDiscovery Requests (0)January 11, 2013A Symantec survey shows most organizations have data retention policies that have yet to be fully implemented or tested, and are ill-prepared for an eDiscovery request. This means growing channel opportunities to ramp up related consulting and solutions aimed at keeping customers in the clear.
Unfazed by Critics, UK Firm Inks Huawei Deal (0)December 10, 2012Even as U.S. firms are being cautioned about doing business with Huawei, European solution providers are strengthening their ties to the Chinese telecommunications and networking vendor and expanding profitable partnerships with the firm.
Samsung, Apple Head Back to Court (0)December 7, 2012The South Korean vendor and bitter rival Apple go back to court so a judge can review the jury's $1 billion decision.
New Site Pits Former Autonomy CEO Against HP (0)December 5, 2012Software maker Autonomy's former management have set up a Web site to counter the accusations made against them by HP.
Microsoft Sued Over Paltry Surface Storage (1)November 14, 2012This probably won’t come as news to anyone who has ever used Microsoft products on any computing device ever, but Windows and all of its accoutrements take up storage space. Lots of it.
Beleaguered Huawei Launches $30M Promo Blitz (2)November 13, 2012Accused of spying and IP theft, Huawei is taking its case right to consumers with the universally appealing, two-pronged approach of flashy discounts and free prizes.
Chinese Official Lashes Out at Huawei Critics (2)November 10, 2012The furor over allegations of Chinese industrial espionage and national security threats reached the highest levels of the Beijing government Saturday when China's commerce minister took time away from his nation’s 18th Communist Party Congress to deride U.S. criticism of technology firms like Huawei and ZTE.
Where Presidential Candidates Stand on Tech (0)October 29, 2012As the 2012 presidential election winds down into its final full week, the candidates are scrambling to make sure their message has been heard by a diverse group of voters particularly in closely contested states such as Ohio and Florida. Here is a compilation of statements and positions from the four candidates on technology and…
Huawei in Mind as Candidates Spar Over China (1)October 22, 2012The U.S. presidential candidates may have avoided naming technology companies specifically, but the specter of Chinese industrial espionage and security threats at the hands of companies like Huawei and ZTE was top of mind during a vigorous foreign policy debate Monday night.
Patent List Grows in Juniper, Palo Alto Suit (0)October 19, 2012The suit brought by Juniper against rival Palo Alto Networks continues its slow plod through the courts and through several unproductive attempts at settling the matter before trial.
Jail, Hard Lessons in Cisco Gear Resale Scam (0)October 15, 2012While Cisco and Verizon battle to get their court-ordered restitution after being bilked out of $2.8 million in equipment by a rogue employee, at least one channel reseller has been left holding the bag.
Amid Huawei Row, CTIA Wants More Info Sharing (0)October 11, 2012Despite allegations that two of its members pose a threat to U.S. national security, the world’s largest wireless networking advocacy group is urging vendors and carriers to share more information with each other and the government in pursuit of safer networks.
U.S. Reps Call Huawei a National Security Threat (0)October 7, 2012Members of the House Intelligence Committee urge U.S. companies to avoid doing business with Huawei, saying the Chinese telco vendor poses a threat of espionage and IP theft.
Will the Supreme Court Destroy the Channel? (1)October 5, 2012The little-known case of Kirtsaeng v. John Wiley & Sons could make it illegal for VARs to resell most used gear and subject resellers to complicated rules, tariffs and fees that could bring the channel as we know it to a grinding halt.
New Law Would Crack Down on Mobile Apps (0)September 13, 2012The proposed legislation would force app developers, phone makers and network providers to get user consent before collecting most usage data. Industry insiders complain the regs would stifle innovation in a red-hot market.
E-discovery May Offer Cloud-less Opportunities (0)September 10, 2012Solution providers unwilling to jump on the cloud bandwagon might find an alternative route to revenues by specializing in the e-discovery space.
Zenith Infotech Hit With Another Lawsuit (0)August 27, 2012Details are emerging that embattled cloud computing provider Zenith Infotech is facing another legal challenge, this time brought by a supplier of technology used in the company’s popular backup storage systems.
Samsung Must Pay $1B in Patent Loss to Apple (0)August 24, 2012A San Jose jury finds Samsung purposefully and illegally copied key features of Apple’s smartphones and tablets.
Massachusetts Issues Foggy Cloud Tax Ruling (1)August 20, 2012The Bay State’s Department of Revenue issued a ruling that essentially says most “software-as-a-service” sold to users in its state are not subject to sales taxes. However, the state otherwise known as “Taxachusetts” left the door open on the cloud sales tax issue, which could have serious implications for vendors and solution providers.
McAfee Awarded $12M DHS Contract (0)August 8, 2012The Department of Homeland Security awarded McAfee a $12 million contract to bolster federal networks and secure infrastructure. The deal could have positive implications for the channel, while setting the stage for future public-sector business from anticipated cybersecurity legislation.
A10 Plans to Challenge Brocade’s Court Win (0)August 8, 2012A10 Networks isn’t done fighting its legal battle with Brocade. Rather than accepting the $112 million judgment, the networking appliance vendor plans to appeal the jury award and nullify the ruling that it willfully infringed upon Brocade’s load balancing patents.
Brocade Wins $112M Ruling Against A10 (0)August 7, 2012Brocade says it won a long-running patent infringement and unfair competition lawsuit against A10 Networks, with the jury issuing an “unambiguous” verdict and a large compensation award for unfair competitive practices.
SAP Pays $306M to Oracle in Copyright Lawsuit (0)August 3, 2012Oracle agreed to a $306 million payout by SAP resulting from an ongoing copyright infringement lawsuit, culminating a week of high-profile litigation for the company that has likely served to create instability and distract efforts from the channel.
Cybersecurity Act of 2012 Dies in Senate (0)August 3, 2012Despite ringing endorsements from President Obama and the IT security community, the Cybersecurity Act of 2012 was dealt a fatal blow in the Senate Thursday, indicating that the issue of critical infrastructure security might remain dormant through the end of the year.
Judge: Oracle Must Support HP’s Itanium (1)August 1, 2012HP emerged victorious in its breach-of-contract lawsuit against Oracle regarding support for its Itanium processors. But Oracle said it plans to appeal the decision, indicating that partners of both companies can't yet count on business as usual.
CSA 2012 Could Still Open Channel Doors (0)July 31, 2012The Cybersecurity Act of 2012 is headed to the Senate for a vote this week. While the elimination of security mandates have weakened the bill, it still contains provisions that could open the door for new government channel business in consulting, risk assessment and forensic services.
Cybersecurity Act Set for Senate Vote (0)July 30, 2012The U.S. Senate is expected to vote on the proposed Cybersecurity Act of 2012 this week. While well-intended, the proposed legislation could induce roadblocks in the security channel with its lack of enforcement mechanisms and amendments that further muddy cybersecurity issues.
Zenith Infotech’s Value Plummets in New Review (0)July 10, 2012A new court-ordered revaluation of embattled Zenith Infotech finds the cloud and backup vendor is now worth roughly one-quarter of its previously assessed value, giving creditors of its defaulted bonds new ammunition in their case to recover their investments.
Patent Rifts, Sales Bans Hurt Channel (0)July 5, 2012Samsung, Apple, Google, Motorola, HTC and Microsoft are in a never-ending battle to stave off rivals from encroaching on their mobile technologies through patent-infringement claims. It’s a good strategy for protecting intellectual property, but it works against the channel.
Court Orders Zenith Infotech to Reassess Value (1)June 18, 2012In the ongoing dispute over its defaulted debt, Zenith Infotech was ordered by an India court to reassess its value. At issue is whether the company can pay its $85 million debt to U.S. leaders – or face liquidation.
Zenith Infotech Barred from Selling Cloud Assets (0)May 7, 2012An India court issued an injunction against the cloud and backup company after determining a previously submitted assessment of its asset value is incomplete. The ruling comes amid speculation that Zenith Infotech was getting ready to shed more assets.
Oracle Sues Two VARs over Gray Market Support (1)February 23, 2012Oracle has filed federal lawsuits against ServiceKey and DLT Federal Business Systems Corp. for allegedly misrepresenting their partner status and offering unauthorized support for Sun hardware and software products. The lawsuits are part of a broader crackdown on gray market services.
Logic Backs Cisco’s Objection to Skype Deal (1)February 20, 2012Cisco is appealing to the European Union, which has a history of regulatory advocacy in technology, to impose requirements on Microsoft to ensure openness in future generations of video telephony and communications. There’s good logic behind Cisco’s argument, and it will ultimately benefit resellers.
Continuant Scores Win in Avaya Antitrust Lawsuit (0)January 31, 2012A New Jersey federal court has dismissed motions by Avaya that would end the lawsuit brought by independent service provider Continuant. The case will go to trial, and the outcome could change the way vendors and customers work with “authorized” partners.
2011: The Year of the Tech Lawsuit (1)December 20, 2011The year couldn’t end without one more trip to court, and this time it’s Juniper Networks slapping firewall challenger Palo Alto Networks with a patent infringement lawsuit. It’s just the latest legal maneuver in a year full of technology lawsuits and legal protests.
Juniper Alleges Patent Infringement by Palo Alto (0)December 19, 2011Juniper Networks is suing upstart Palo Alto Networks for allegedly infringing on six firewall patents. The legal case could set the stage for a battle to control the next-generation firewall market.
Faux VAR Indicted for Scamming $10m from HP (0)December 16, 2011Mark Allan James faces charges of wire fraud and money laundering in a scheme to exploit Hewlett-Packard’s “Big Deal” incentive program to procure computers and other products at steep discounts for unauthorized resale.
Fake Cisco Partner Heading to Club Fed (0)November 7, 2011A Kansas man is going to federal prison for his role in importing counterfeit Cisco gear for resale in the U.S. market. And it wasn’t just the networking gear he copied; he also produced fraudulent manuals.
Syria Crackdown Aided by the Channel (0)November 4, 2011Documents obtained by Bloomberg BusinessWeek find the Assad regime is getting prohibited U.S. and European security and storage equipment to use in systems for cracking down on protesters through an Italian partner. The disclosure reveals issues of ethics and corporate responsibility in politics and social justice.
Cisco Counterfeiter Gets 5 Years in Jail (0)September 12, 2011Chun-Yu Zhao, who posed as a legitimate Cisco reseller, will spend the next five years in jail and lose most of her assets as punishment for an elaborate scheme to manufacture and import millions of dollars in bogus Cisco networking gear.
Google’s Federal Cloud Protest Moves Forward (0)September 2, 2011A federal court is expected to issue a ruling next week ordering the Department of the Interior to hire an independent expert to determine if Google Apps meets the government’s cloud security requirements. The decision is a blow to Microsoft’s dominance in the federal IT market.
Lawsuits, Protests and Other Conflict Resolutions (0)September 2, 2011Solution providers often feel at a disadvantage when vendors change the terms of partner agreements, especially when it costs them money. Every business has options for conflict resolution, and not all of them require going to court.
The Prosecution of Peter Alfred-Adekeye (1)August 8, 2011The former Cisco engineer turned channel entrepreneur has been tied up in legal battles for years with his former employer and the U.S. government. Now, he faces a new round of court challenges following his indictment on hacking charges. What makes Alfred-Adekeye the most prosecuted man in the channel?
Oracle Wants HP to Drop Jones Lawsuit (0)July 29, 2011In new court filings, lawyers say HP’s core evidence that former channel chief Adrian Jones stole trade secrets are “indisputably false.” The revelations are the latest twists in the ongoing legal battles between Oracle and HP.
VARs Flee from Massive NYC Fraud Case (5)June 21, 2011TechnoDyne was once a rising star in the channel, cited for its rapid growth and technical prowess. Now it’s out of business, its 200 employees are on the street, and its owners are international fugitives from charges related to defrauding and laundering millions of dollars in a NYC software project.
Convicted Cisco Counterfeiter Posed as a VAR (0)May 27, 2011Federal prosecutors announced the convictions of a Chinese national and U.S. citizen who conspired to build and distribute millions of dollars worth of bogus Cisco gear through a Va. front company posing as a reseller.
Symantec Gets Legal with eDiscovery Acquisition (0)May 20, 2011Big Yellow is diving into eDiscovery through the acquisition of long-time technology partner Clearwell Systems. The new product line will give Symantec a play in the legal compliance market and potentially enhance its existing security and storage products.
Cisco VAR Gets Prison Time for Warranty Fraud (0)May 6, 2011Iheanyi Frank Chinasa, the owner of a Md. hardware reseller, will spend the next seven years behind bars for defrauding Cisco of $27 million in networking equipment. Here’s how he did it, and why it will hurt law-abiding solution providers.
IT Consultant Legal Drama Made for Reality TV (2)April 29, 2011Law enforcement officials allege computer consultant William Lanham bilked the New York City Public Schools out of $3.6 million to fuel a lavish lifestyle. The particulars of the case – a complex fraud scheme involving IBM and Verizon, an estranged wife and a fleet of fast cars – is even too rich for some titillating…
Kaspersky Lab Operating “Business as Usual” Amid Family Crisis (0)April 22, 2011Reports are conflicting, but all indications are the son of Eugene Kaspersky, founder of Kaspersky Lab and popular executive figure in the IT channel, is missing and some reports indicate this is a kidnapping case.
WikiLeaks Shows Need for Deeper DLP Adoption (0)December 2, 2010Army private Bradley Manning may become the patron saint of data loss prevention (DLP). Thanks to his supplying WikiLeaks with hundreds of thousands of sensitive and classified government documents, Manning has done more to raise the level of awareness of insider security threats and the risk posed by unchecked portable media.
Google, Partner Scores Big with Federal Agency (3)December 1, 2010The Obama administration is pushing federal agencies to take a “cloud first” approach to solving IT problems effectively and at a lower cost. The Government Services Agency today became the first department to migrate its 15,000 employees to a Web-based email system – Google Apps. The contract win signals a growing opportunity in the federal…
Google Sues Feds over Microsoft Email Bid (0)November 2, 2010Government resellers should watch the new legal battle launched by Google and one of its Google Apps resellers against the Department of the Interior over how the government should buy web-based email services. At issue: a government request-for-proposal specifying Microsoft as the supplier of cloud-based email services.
Battle for Mobility Heads to Court (0)October 4, 2010On the eve of Windows Phone 7 finally coming to market, Microsoft launched an unusual legal battle against rival Google by filing a patent infringement lawsuit against Motorola. Yes, you read that right: Microsoft is suing Motorola for patent infringement for the way Google’s Android operating system synchs email and files on smartphones.
Lawyers, Guns and Money in the Channel (1)August 25, 2010There’s simply no denying it: We live in a litigious society where everyone has the right to seek recourse before the law. Everyone has the right to sue, provided they have minimal grounds for filing a grievance. And, of late, the channel and general technology industry have been breeding grounds for big lawsuits over anticompetitive…