Well then, this juicy story just keeps getting better and better. This morning we’ve learned, courtesy of Hot Hardware and TechEYE.net that the distribution company that reportedly supplied these fake/counterfeit/demo sample (whichever you choose to believe) CPUs to Newegg has begun threatening legal action against at least two web sites that published their involvement. To wit, here’s TechEYE.net’s quote from the firm they say represents D&H – Creim, Macias, Koenig & Frey:
“It has recently been brought to our attention that you are responsible for publishing on the internet, and specifically on your websites, untrue statements respecting allegedly counterfeit Intel Core i7 processors which you allege were sold to Newegg by D&H.
“This letter places you on notice that these statements are false. You have no basis for publishing these false and malicious statements about D & H. These false allegations are defamatory and disparaging to D&H”s business and business relations and have caused grave and irreparable damage to our client.
“IMMEDIATELY (i) cease and desist posting such defamatory material about D&H.; (ii) remove the contact and any reference to D&H from your website; and, (iii) post an immediate retraction and apology which shall remain posted for not less than thirty days.
“If you fail to do so by 5 p.m., pst., on March 6, 2010, D&H will pursue all of its rights and remedies, including, without limitation, an action for libel, will seek full recovery for the damages caused by your untrue statements including punitive damages, as well as seek injunctive relief.”
Yikes. Looks like somebody’s knickers are in a wad over this whole thing! Add that lovely cease and desist letter to the fact it appears individuals that posted at our forums have been told to keep quiet by an unknown legal force and a juicy scandal just turned ridiculous.
So let’s sum up.
- Forum users here and at [H]ardOCP post photos of what appear to be non-legit Intel i7 920 CPUs.
- Newegg quickly apologizes, begins RMAs of the processors, in keeping with their usual superb customer service.
- Newegg says (paraphrased) ‘Sorry about that, those were demo samples.‘
- Intel says (also paraphrased) ‘Nope, they are counterfeit. If your retailer doesn’t fix it, call the cops!‘
- Newegg tells our administrator, I.M.O.G., that they are in fact counterfeit and they will be taking care of their customers. Notice they did not mention their supplier’s name.
- The distributor mentioned at a couple places that reportedly supplied the items tells people publishing their findings on the matter to put a sock in it.
From oddity to downright silly in the time it takes to run SuperPi 1M. Our editor mdcomp is in contact with Newegg PR and they assured us we will be in the loop on future releases. We’ll continue to work to keep you up to date on this developing scandal.
UPDATE – Overclockers.com contacted Intel directly and they are sticking with their standard press release. Here’s what they have to say:
Intel has been made aware of the potential for counterfeit i7 920 packages in the marketplace and is working to [find out] how many and/or where they are being sold. The examples we have seen are not Intel products but are counterfeits. Buyers should contact their place of purchase for a replacement and/or should contact their local law enforcement agency if the place of purchase refuses to help.
Intel is getting samples to inspect and until then we can say that everything in the package appears fake. Some of the photos of the processor look like it is a casting and not even a real processor of any kind. Newegg has moved quickly to replace the suspect units.
Related posts:
- RIAA’s Draconian Legal Action
- Newegg Releases Statement Regarding Fake Processors
- Intel Comments on Fake Processors
- Legal Beagles
- Ipex Infotech Releases Statement Regarding Fake Newegg i7 CPUs
03-08-10 10:17 AM
Edit...Excellent writeup and summary of events on the front page Hokie
03-08-10 10:43 AM
Newegg is huge. By nature, their distributors are huge. Intentionally taking this action and distributing counterfeit hardware is a definite impossibility anywhere down the line - no one would be dumb enough at the corporate level to take such an action and risk jeopardizing their client relationships.
But many hands touch product and are involved in the supply chain. Somewhere something went wrong - the initial reaction from Newegg has been stellar, they are just making it right for their customers and figuring out the details in the background. There was a lack of control somewhere however along the supply chain, and that uncertainty is leading to a lot of guessing from readers and web publishers.
The legal threats to quell rumors and such are unfortunate, and frankly I think its garbage. The best solution to the problem of people making accusations and spreading rumors, is being open and honest about what is currently understood about the problem and what is being done to understand it better. Once everyone knows what went on, and there is transparency about where the problem initiated, this story will be old news. Naturally, the rumors and quacks making accusations without any facts will subside at that point.
Newegg has been transparent and forthcoming with the information they have, and I believe this, along with their great customer service record, is the reason why the focus/blame quickly shifted off of them.
03-08-10 10:50 AM
The legal threats to quell rumors and such are unfortunate, and frankly I think its garbage. The best solution to the problem of people making accusations and spreading rumors, is being open and honest about what is currently understood about the problem and what is being done to understand it better. Once everyone knows what went on, and there is transparency about where the problem initiated, this story will be old news. Naturally, the rumors and quacks making accusations without any facts will subside at that point.
Newegg has been transparent and forthcoming with the information they have, and I believe this, along with their great customer service record, is the reason why the focus/blame quickly shifted off of them.
PS...this is not stopping me by no means to place my order at Newegg for yet another motherboard this morning
03-08-10 10:52 AM
1. Lack of information leads to speculation.
03-08-10 11:04 AM
Newegg is doing the most important thing, putting the customer first and replacing the "Demo/Fake" CPU's. I think Newegg should be praised on their quick responce to satisfy the customer. You can't expect them to publicly point the finger at this early stage.
Im sure (hope) the truth comes out in the end.
EDIT: I also hope that D&H can't get away with the "Legal action" that their representative claims they will be pursuing. I don't think its right.
03-08-10 11:07 AM
03-08-10 11:13 AM
I am hopeful D&H will realize the best way to protect their interests is to offer greater transparency into what they know about the issue. In the absence of good fact, speculation is rampant. It is not fair to D&H, whose exact involvement is not known, however its a function of human nature.
Rather than working against the grain and trying to change human nature via legal action, they'd likely experience more success by working with the community and being forthcoming regarding what they know at this point. Its an opportunity to engender good will amongst the community while they are in the spotlight, and it could be leveraged to their advantage. Newegg has set a good example with their response, anyone else involved should follow suit.
03-08-10 12:11 PM
Newegg has done right by their customers, and that's what's important to me in their regard. I don't know what exactly the D&H lawyers are thinking, but they're certainly not very good at PR!
03-08-10 12:38 PM
Legal's 1st advice is to protect the company and suppress any bad or incriminating press, that is their job, however the client is the party who directs them, so in this case it is not the lawyers fault per se but the client who advised them to go bark at the online editors.
03-08-10 12:49 PM
Now the issue has blown up thanks to an idiot lawyer that has dragged D&H Distributing into the center of this and made it an issue about freedom of speech and evil lawyers who try to silence a clearly wronged party.
If I were D&H, I'd immediately seek new representation, and post an apology on their Web site stating that they have fired the lawyers who made such an amateurish mistake.
Otherwise, many of us will take our business to places who don't get their chips from D&H distributing.
MicroCenter (http://www.microcenter.com) sells the i7 920 for $199 in store only, which is $89 less than NewEgg charges.
03-08-10 12:52 PM
I've always admired Newegg's dedication to customer service, and still do. But, I must admit, I was very disappointed with them when they released the "demo" cover story. However, in light of these new legal developments, I now wonder if C&D threats were the motivator for this.
Ok, so Newegg is now retracting the "demo" cover story?
03-08-10 12:56 PM
I quoted their exact words here:
http://www.overclockers.com/forums/s...40&postcount=2
So the "Demo" comment was a preliminary comment, made initially when understanding of the issue was just beginning to develop. Some people are getting too hung up on that, and don't realize it was a comment made very early on when this issue was identified. As early as 5PM friday however, it's clear a better understanding of the problem was already developing at Newegg and they were forthcoming about what little information they did have.
03-08-10 12:57 PM
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03-08-10 02:36 PM
Intel is getting samples to inspect and until then we can say that everything in the package appears fake. Some of the photos of the processor look like it is a casting and not even a real processor of any kind. Newegg has moved quickly to replace the suspect units.
03-08-10 02:40 PM
Now that would make perfect sense, someone that can advise them on what hardware will draw the crowds and what OC's the best
03-08-10 06:35 PM
I would contend that the stories I've read merely state the counterfeit CPUs were sold and did not say that they knew who created those CPUs. That's a big difference in my book. For all we know, Newegg and D&H are victims as is Intel and the end users who bought them.
I think that Newegg is doing the right thing (not forgetting the "Demo" story) by replacing the bad CPUs but that D&H is being shady at best. The "strong arm" tactic is in poor taste is all.
These are my opinions and I represent them as opinion only. :P
03-08-10 08:34 PM
Newegg's response on FAcebook.
Today at 8:26pm
Newegg is currently conducting a thorough investigation surrounding recent shipments of questionable Intel Core i7-920 CPUs purchased from Newegg.com.
Initial information we received from our supplier, IPEX, stated that they had mistakenly shipped us "demo units." We have since come to discover the CPUs were counterfeit and are terminating our relationship with this supplier. Contrary to any speculation, D&H Distributing is not the vendor that supplied us with the Intel Core i7-920 CPUs in question.
Neweggs top priority is to proactively reach out to all customers who may have been affected to ensure their absolute satisfaction. We have already sent out a number of replacement units and are doing everything in our power to resolve the matter promptly and with the least amount of inconvenience to our customers.
We have always taken pride in providing an exceptional experience for each customer, and we apologize for any inconvenience to our valued customers. We take matters like this extremely seriously, and are working in close cooperation with Intel and the appropriate law enforcement authorities to thoroughly investigate this incident.
03-08-10 08:35 PM
http://www.overclockers.com/newegg-r...ke-processors/
03-08-10 10:32 PM