Stops grey imports of Samsung Galaxy Tab 10.1

Aussie retailer Kogan caves to Apple lawyers

Controversial aussie retailer Kogan has backed down in the face of legal action from Apple and removed the Samsung Galaxy Tab 10.1 from sale in Australia.

Samsung had previously agreed not to sell the firm’s iPad rival Android tablet in the Australia market until a patent dispute was resolved in the Australian Federal Court.

Normally only offering China-sourced white label products on the Kogan brand, two weeks ago the retailer began selling brand named consumer electronics in the Australian market.

"Until now, the prices that Australians have been paying for consumer electronics have been significantly above World averages. That is all about to change," the company said.

In this, at least, Kogan is right. Dispreportionately high Australian prices have even gained the attention of politicians down under with Federal Labor MP Ed Husic vowing to call companies to account for ‘rip off’ pricing.

The strategy shift also provided the opportunity to flaunt Samsung’s agreement not to offer the tablet in Australia by selling product thought to be procured through a Hong Kong based retailer according to a report in The Age.

Kogan was then threatened by legal action from Apple’s Australian lawyer, to which Kogan, possibly sensing this was not the time for his trademark belligerence, quickly complied.

"All we are trying to do is to provide the latest technology at the best prices. Pointless litigation is not our specialty," Ruslan Kogan told The Age.

Apple’s lawyers demanded that the retailer cease selling, importing and marketing the Samsung tablet and demanded that the firm deliver stock to Apple and reveal who supplied the Samsung stock. While Kogan took the tablet off sale as a conciliatory "gesture of goodwill", they stopped short at complying with Apple’s other demands.

"There is a fine line between legitimately enforcing your intellectual property on the one hand, and just trying to stifle competition on the other – in our view Apple is very precariously walking that line," said Kogan director David Shafer.

Kogan also sells the Apple iPad priced around 20 per cent cheaper than bricks and mortar retailers Harvey Norman and JB Hi-Fi.

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