A court judge's ruling on Cisco's reseller agreement could set off a flurry of lawsuits from partners who
Infra-Comm sued Cisco for allegedly snatching a $5 million opportunity away from the reseller and turning it over to AT&T. Cisco, in turn, claims Infra-Comm harmed the networking giant's busines and misused its brand name.
This week, the judge found three provisions in Cisco's ICPA unconscionable: that the partner is not provided with an opportunity to negotiate the terms of the contract when using Cisco's Web site to renew contracts; that Cisco could terminate a reseller agreement with only a month's notice, or without notice at the beginning of each year; and that the ICPA limits damages to what a reseller pays Cisco over the course of three months for services and products, which could be unfair to longtime resellers.
A Cisco spokesperson told ChannelWeb that the provisions in question were common in the industry and that it would continue to vigorously defend Infra-Comm's allegations.
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