Monday, December 29, 2008

HP Printers Sold in Iran - The Unholy Alliance -

"HP has a policy of complete compliance with all US export laws.", David Shane, a spokesman for the HP.

He would not say whether HP plans to stop sales of its printers in Iran.

In a story first broken by
Farah Stockman, at the Boston Globe, and now breaking all over the internet, HP, through a third party distributor, Redington Gulf is reported to be selling printers in Iran.

Lot's of printers.

According to sources withing Iran, HP holds 41% of the printer market, this, in the face of a comprehensive embargo that prohibits HP from sending its products to Iran.

There is a good argument that selling consumer based goods may not tip over into a national security issue, but neither do cigars and rum.

Indeed, HP is not breaking any laws.

Products being supplied to Iran are not likely to be mentioned in a specific "ban" list and the third party distributor provides insulation from legal harm. Of course, if HP is sufficiently aware of Redington Gulf's sales in Iran, it may be in violation of US export laws.

Andrew DeSouza - US Treasury Department, said US companies are barred from selling their goods to a distributor if they have "knowledge or reason to know" that the goods are intended for Iran.

But what of the publicity damage? Xerox may provide answer.

After reviewing the Xerox website in February of 2006, SEC contacted Xerox, asking about the third-party distributors Xerox used to sell its copiers in Iran, Sudan, and Syria.

"We note from your website that you may have operations associated with Iran, Syria, and Sudan, which are identified as state sponsors of terrorism by the US State Department and subject to economic sanctions imposed," stated the letter from Cecilia D. Blye, chief of the SEC's Office of Global Security Risk. "We note also a public media report that Xerox products are sold in Iran."

Xerox said they had entered into legal distribution agreements with foreign distributors who were within their legal rights to sell in Iran.

By August, Xerox announced an end to the those distributor agreements.

HP is on the right side of the law on this. Whether Hurd acquiesces to the predictable media attention remains to been seen.

Sourced article, Boston Globe by
Farah Stockman, here.

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3 comments:

  1. Come On, HP had the same share of Iraq's Printer Market before the War as well. 40% Easily...all of which came from HP SEA Disti in Singapore...they also have knowledge...but of course no legal challenge will ever be made...there is too much money at stake in those ink cartridges

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  2. I almost forgot...what about Microsoft and Cisco also customers of Redington...

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  3. Great Points - I am sure that HP has all the "bases covered" on this one.

    You mention Cisco and Microsoft, there are dozens of companies - LinkSys, IBM, Intel...just to name a few, that work with Redington.

    All the news about HP is solid and good - this will probably be a "blip" on the radar...

    The Boston Globe article is a detailed product of obvious research - by putting "HP" in the headline a spike in "views" is guaranteed.

    Thanks for your comment, keep coming back...

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