SC suspends injunctions against Techzone from importing HP products through alternative sources

By S.S.Selvanayagam

In a landmark order the Supreme Court suspended several injunctions granted by the Commercial High Court of Colombo in favour of Hewlett Packard AP (Pvt) Ltd preventing Tech Information Solutions (‘Techzone’) from importing of genuine HP products through alternative sources thus on a prima facie basis sustained the specific provisions of Intellectual Property law permitting parallel imports.  

Injunction was sought in the Commercial High Court in an action filed by Techzone a leading importer and reseller of laptops, notebook, desktops and other IT related peripherals of global brands in Sri Lanka including products of HP brand in Sri Lanka against the HP Personal Systems Group engaging in derogative and disparaging advertising campaign thwarting genuine competition.  

However, the High Court refused the granting of interim relief in favour of Techzone and gave several interim injunctions in favour of the HP effectively preventing Techzone from importing/distributing and/or selling HP products not available through HP Sri Lanka through alterative sources.  

In the Supreme Court the counsel appearing on behalf of Techzone made submissions on the basis that the parallel importation of genuine products should not be prevented other than through channel distributors in that, the ultimate consumer would be the beneficiary of the Competition with relating to pricing and quality and variety of goods in offer.

The Supreme Court hearing lengthy submissions made on behalf of both parties suspended injunctions granted in favour of HP thus permitting Techzone parallely importing genuine HP products through different channels including laptops and notebooks of latest specifications and models not made available to the Sri Lankan consumer by HP Sri Lanka.

S.A Parathalingam P.C with M.U.M Ali Sabry and Ruwantha Cooray instructed by Paul Rathnayake Associates appeared for Tech Information Solution (Techzone) and Mr. Avindra Rodrigo instructed by F. J & G De Seram appeared for HP.