(c) 1995 Copyright The News and Observer Publishing Co.
(c) 1995 Bloomberg
SACRAMENTO, Calif. (Oct 10, 1995 - 17:01 EDT) -- Packard Bell
Electronics Inc. said it is countersuing Compaq Computer Corp.,
alleging unfair competition and defamation.
Packard Bell, the fourth-biggest personal computer maker in the world,
said it's seeking unspecified punitive damages and reimbursement for
loss of income because of a campaign waged against it by Compaq. The
suit stems from a disagreement over the use of recycled electronic
components from returned PCs in "new" machines.
Houston-based Compaq, the biggest PC maker, sued Packard Bell in April,
alleging that it was falsely advertising its machines as new. Compaq
asked the court to stop Packard Bell from "falsely representing" its
products and to disclose to potential purchasers in advertising whether
parts of a product are used.
Closely held Packard Bell, based in Sacramento, California, alleges
that Compaq has misled customers about its own policy of using recycled
parts from used PCs.
Packard Bell says in the suit that it thinks parts recycling is done by
many, if not most or all, major PC makers. The practice allows
manufacturers to provide liberal return policies that benefit
consumers, the suit says.
A Compaq spokeswoman said the company has no response to the lawsuit
yet.
The spat between the PC makers broke into a brawl in the press in June,
when Packard Bell accused a Compaq executive of making "racist,
insensitive" comments about its low-cost manufacturing operations.