Transshipped At A Cost
Polk Audio also sued Capital Audio, another authorized dealer caught transshipping Polk Audio products. Capital Audio settled out of court, paying Polk Audio an undisclosed sum. Now when Polk Audio discovers an unauthorized dealer selling its product, DiComo says, "we send people a polite letter, with copies of the press releases [about the legal victory against Crazy Eddie and the settlement with AVI], and they get it. It's remarkable how they just quietly go away."
Polk Audio reported that in the past 14 months, it persuaded 79 unauthorized online retailers to remove Polk products from their Web sites. The company terminated the contracts of several dealers caught transshipping, including one that purchased more than $1 million from Polk Audio in 2003.
In a statement on its Web site, MERA takes a group stand on transshipping, pledging "to refrain from the commerce of branded products in a manner that is contrary to the covenants provided by the manufacturer's dealer agreement. Manufacturer, distributor and stocking represen-tative members pledge to discourage transshipping by unilaterally declaring and enforcing their policies and agreements.