Re: Cisco/Juniper right of resale.

[John Curran <jcurran () istaff org>]

At 5:40 PM -0400 8/16/04, Gerald wrote:
> I believe this is still an open legal argument waiting to be tested. They
> claim it, but no one has fought it yet. In federal law there is a concept
> called right of resale. Note article dates when reading:
> http://www.washingtontechnology.com/news/14_11/federal/758-1.html
> http://articles.corporate.findlaw.com/articles/file/00353/009275
> ...

If you buy a serious quantity of equipment (say: $10M+ each year) and
are particularly annoying (who, me? ;-), then you can take some amusing
contractual steps to insure that you receive the full useful value of your
equipment purchases...

This includes including the post-warranty maintenance plan costs in your
total ownership cost comparison (to bring useful life out to match the three
or five years deprecation life) and it also means requiring vendors to allow
clear transfer in those cases where you need to remove equipment from
the network and they turn down the option to buy it back themselves... 

Contractual mechanisms work very well, and all it takes is a willingness to
turn away vendors in the lobby who otherwise thought you'd buy gear that
loses half its resale value on receipt...

/John