CSG to appeal Fuji-Xerox court decision

CSG has told its shareholders that it will seek a stay of orders and appeal against Fuji Xerox Australia's NSW Supreme Court win yesterday that could see it take $3 million of A3 printer servicing contracts from CSG.

Fuji Xerox Australia had issued proceedings against CSG in August to "determine whether its termination as a CSG partner in Brisbane and Maroochydore was a valid termination", CSG said in August. 

Justice McDougall's decision required CSG to provide Fuji Xerox with signed deeds of novation which the vendor could forward to CSG customers in Brisbane and Maroochydore, CSG's statement to the ASX, showed. 

A deed of novation would allow customers to move their contract with CSG to a new agreement with Fuji Xerox. 

CSG told shareholders that the total number of installed machines in the two cities represented approximately 10 percent of CSG's A3 printers under management in Australia and New Zealand.

The financial impact could cost the integrator $3 million to $4 million in loss of profit before tax if every customer swapped to Fuji Xerox Australia, CSG said.

Background

On August 23 CSG announced that it had become a Canon dealer in Brisbane and a Develop dealer in Maroochydore. Develop is an international brand manufactured by Konica Minolta and distributed in Australia by Imagetec Solutions.

At the time CSG said the Brisbane opportunity was a result of CSG’s dealer agreements with Fuji Xerox Australia having come to an end.

The announcement followed CSG's May announcement that it had become a Canon dealer in Sydney, Melbourne, Canberra, Adelaide and Perth with sub-contractor rights over approximately 10,500 multi-function devices. 

Neither party has returned CRN's calls for comment.