Last year, Brisbane-based reseller Digital DNA bought around 75 Chimei CMV (Taiwan-based vendor) monitors from XiT Distribution, a Brisbane-based wholesale company.
The monitors were a mix of 22 inch and 19 inch, priced around $330-$350 each - ex tax wholesale - and were sold with a three year pickup, repair and return warranty, said David Cuthill, owner of Digital DNA.
In early February 2008, a Digital DNA customer contacted Cuthill about some issues they were having with a Chimei CMV monitor, so he contacted XiT Distribution by email to get a number for warranty support.
However, XiT Distribution told him that it had purchased the monitors from another distributor, eSys Integrated, which had closed its Australian offices in early 2008.
Cuthhill was then referred to Bellsoft Technologies, a service provider that had a subcontract agreement with eSys, to service Chimei CMV monitor.
But the Bellsoft website - http://www.bellsoft.com.au/support.htm - says that it stopped providing warranty services for Chimei monitors as of 31 January 2009 and directs users back to the manufacturer.
James Waterson, managing director at XiT Distribution, told CRN he was in the same boat as the reseller.
"I had $15,000 worth of CMV monitors which I gave out, one by one, when eSys closed up shop," he said. "When someone had a faulty monitor one I replaced it with one I had in stock.
Impact Systems and Protac distribute the same monitors in Australia but have isolated themselves from the fallout generated by eSys's collapse.
Waterson said that if a customer called Impact or Protac with a complaint about a CMV monitor, the distributor would check the serial number and refuse to carry out warranty work if they hadn't sold that particular monitor.
"You can't blame them. They aren't getting paid to fix products from another distributor," said Waterson.
Peter Agmalis, managing director at Impact Systems, said he was sympathetic towards any reseller caught in the middle of the situation with Chimei.
He claimed warranty/services issues for the vendor's product dates back to 2003.
At the time the distributor had a master distribution agreement with the vendor.
"[Impact Systems] was responsible for introducing the monitors to Australia and at the time set forth a uniformed warranty/services among our sub-distirbutors," he said.
"Our distribution dealings with the vendor went pear-shaped in 2005," he claimed.
Agamalis claimed during that year, Chimei started a direct relationship with Impact's sub-distributors.
He claimed the sub-distirbutors, which included eSys Integrated, adopted their own service policies.
"[This] caused a lot of confusion and I suppose through one reason or another we stopped distributing Chimei products," said Agamalis.
"We continued to service our reseller's warranties until they ran out, while the other distributors put in place their own policies."
When eSys closed its Australian offices in early 2008, the distributor approached Impact to take on the servicing of Chimei monitors, said Agamalis.
"Before eSys closed its doors, we were in talks with the distributor to take over the servicing of the monitors. Before we could come to an agreement on the terms, eSys left the country.
"This has added more confusion to the situation and made matters worse. Everyone is upset about what's happening."
Frankie Chung, customer service officer at Protac, confirmed with CRN that it won't service CMV monitors unless it has been bought from the distributor.
"We direct them to the supplier," he said.
"We have already talked about this situation to the supplier and have not had any responses.
"Maybe it is trying to find another warranty support centre."
In the meantime, Digital DNA's customers want to know how they can get their monitor fixed.
As a reseller, Cuthill said he just passes on a manufacturer's warranties -- like "everyone else".
"This is the first instance of a Chimei CMV Monitor we have sold that no longer has a warranty provider associated with it," he said.
"Our concern is that we have a few ticking time bombs out there."
However, Agamalis said Impact Systems is willing to help resellers needing services for Chimei monitors, however a small fee will be required - to be worked out with the distributor.
"We have restarted a small relationship with Chimei and I feel for the resellers that have been caught up in the situation," said Agamalis.
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