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Author Topic: Product Warranty if product is not performing to specification  (Read 1213 times)

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Offline chand

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Product Warranty if product is not performing to specification
« on: September 06, 2013, 05:34:06 AM »
The query is related to a device is in issuing software licenses.

The distributor in Delhi, India is a authorised distributor of a product [a USB Dongle] used in protecting software and restricting its licenses to numbers of users.

The company claims that USB dongle can be used only on standalone PC. Company has different version of the product for Network licenses.

A software company used this dongle in issuing license for a standalone computer [single computer] but later found that end user can use it on the NETWORK and run over 100 computers at a time.

The USB dongles are manufactured by a reputed company in china. The distributor agreement between Indian distributor and Chinese company states that all disputed will be govern by Laws of Switzerland [Geneva]. This agreement also states that all liability related to Product Warranty shall be responsibility of the Chinese company.

Upon contacting Indian Distributor, he said that he will help in communication with the Chinese company.

This should be noted here that a single computer use license for the software is sold for Rs. 10000/- while Network license is sold for Over 1 Lac.

All users who brought Single Computer license are able to use it for Network on more than one computer.

It is very difficult to estimate the actual loss.

What can we do?
Which law will govern in claiming damages?
Should we approach an Indian Court of We need to go for a Swiss Court?
How much damages can be claimed?
Should we file case against the distributor which is an Indian company or against Chinese company who is manufacturer of the product?

The fact of the matter is distributor was not knowing about this defect. It seems that Company was knowing about the defect but did not disclose it because company also has network version of same of similar products.

Thanks for your time in reading this. Thanks for your suggestions in Advance.

Offline advRanjithRajagopal

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Re: Product Warranty if product is not performing to specification
« Reply #1 on: September 06, 2013, 08:30:21 PM »
The question of damages and legal suit will be of no help at all, as this is not the users fault, it is a technical fault of the creators of the software.

The correct way would be to recall all such softwares that allows or permits single user to use in multiple computers and replace it with the software which is technically sound.
adv.Ranjith Rajagopal

Offline chand

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Re: Product Warranty if product is not performing to specification
« Reply #2 on: September 07, 2013, 12:07:52 AM »
There is no question of seeking damages from the end user. He is simply using technology available to his disposal. He is simply violating license terms but seeking damages from him will also damage our business reputation. Improving software locking is only option.

The question is about seeking damages from USB Dongle manufacturer as his device is not working as per specification.

The USB Dongle specification states that it is suitable for single user licenses on a desktop computer [and not for the NETWORK]

The dongle manufacturer has different dongles for network and multi-users systems.

We purchased dongle based on specification provided by the manufacturer which is not working as per its specification. The technology that was used to misuse the dongle was known to the dongle manufacture and he should have disclosed that fact in his product specification sheet.

So the question is :

Against whom case can be filed: distributor, which is an Indian company or the Manufacturer, which is a Chinese company and under which law.

Other questions are well described in the question so no need to repeat here again.


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