Thursday, June 11th 2009
German Reseller Stakes Claim to Several Brand Names, Targets Competitors
In EU, a land that worships fair market practices, that recently booked two of the biggest names in the IT industry (Intel, Microsoft) for anti-competitive market malpractices, and penalized them for billions of Dollars, one would expect high standards of business practices. Apparently one has to peel the onion to find it's not all that fresh inside. Aquatuning, a German reseller has found an interesting way of locking its competitors out, of pretty much everything it does. The store deals in high-performance PC component cooling products, such as water-cooling components. In order to make sure nobody else in the country sells what it does, the company is registering the brands its sells, under its own name.
For example, the store sells DangerDen products. DangerDen is an American company, which has its brand name and company logo (trademark) registered in the US (which apparently must be respected in all countries where it sells its merchandise). Aquatuning "registered" the name in Germany, and stakes claim to it. This prohibits other resellers to source the product. This, because it fears another company would do the same to it. It doesn't stop here. The retailer already sent a cease-and-desist letter to a competitor.
The original owners of the brands, such as Bitspower, Danger Den, Koolance, Swiftech, Thermochill, XSPC, etc., are being served with different stories on why their brand names were re-registered outside US, without permission, a known reason being the one earlier mentioned. The move prevents other retailers from selling the same products, stifling competition. Aquatuning could hold the power to dictate prices in Germany, unless action is taken by the trademark holders, or the law of the land.
Source:
HardOCP
For example, the store sells DangerDen products. DangerDen is an American company, which has its brand name and company logo (trademark) registered in the US (which apparently must be respected in all countries where it sells its merchandise). Aquatuning "registered" the name in Germany, and stakes claim to it. This prohibits other resellers to source the product. This, because it fears another company would do the same to it. It doesn't stop here. The retailer already sent a cease-and-desist letter to a competitor.
The original owners of the brands, such as Bitspower, Danger Den, Koolance, Swiftech, Thermochill, XSPC, etc., are being served with different stories on why their brand names were re-registered outside US, without permission, a known reason being the one earlier mentioned. The move prevents other retailers from selling the same products, stifling competition. Aquatuning could hold the power to dictate prices in Germany, unless action is taken by the trademark holders, or the law of the land.
28 Comments on German Reseller Stakes Claim to Several Brand Names, Targets Competitors
Here in California, I have at least 5 good on-line retailers and two actual stores I can go to for water cooling products. They all have to compete with each other, and I benefit. They each have slightly different inventories, prices, etc. I end up spreading my purchases around because one company will have a product at a good price, so I make several purchases from them to save on shipping or gas. The next time it's a different company. Everybody wins: me, the companies, and the PC community as a whole.
I can't imagine that this is a legal practice. Now that it's out in the open, hopefully the companies that are victims of this scheme will take action, and it will stop.
PS: My earlier statement about not buying their products. I was confusing them with another German company that makes ultra cool water cooling stuff (both have Aqua in their names). Thank you for pointing out my error.