A UK distributor, ITAC Ltd, is suing Microsoft for libel saying the software giant unfairly labelled it a "rogue trader".
ITAC (UK) was served with a $7m civil case in January. Microsoft accused ITAC of "parallel importing" - bringing products into the UK which were originally destined for other markets. It was accused of importing software from an unauthorised reseller in the Middle East.
But ITAC is not taking the allegations lying down; it is countersuing and says that accusations made by Microsoft on its website and in a media alert to UK channel papers are libellous. ITAC is also taking action against other unnamed channel firms.
William Lister, lawyer at Pannone and Partners which represents ITAC, said: "It is clear that Microsoft's proceedings against ITAC are part of a much-publicised worldwide campaign to thwart alleged grey importers.
"ITAC strenuously denies the allegations and is vigorously defending the proceedings." More details at VNUnet. ®