In CI No 2,073, Hesh Wiener described how Charlotte television viewers were treated to a news item about an IBM Corp suit against a local company. The suit was over allegedly counterfeit circuit boards, but on investigation, it appeared that the boards were not the only things that did not appear to be quite what […]
In CI No 2,073, Hesh Wiener described how Charlotte television viewers were treated to a news item about an IBM Corp suit against a local company. The suit was over allegedly counterfeit circuit boards, but on investigation, it appeared that the boards were not the only things that did not appear to be quite what they were cracked up to be. He has now obtained a complete transcript of the video clip that was shown on the 11 PM news show of channel 36, WCNC, in Charlotte, North Carolina, broadcast on Friday, October 16.
Video of female newsreader at desk in studio NEWSREADER: …As News 36 reporter David Collins tells us, the suit alleges the companies use their legitimate businesses for trafficking in counterfeit IBM equipment.Video shows feature card in plastic cassetteCOLLINS (VOICEOVER): IBM’s port expansion card acts like a traffic cop, directing computer information to and from various sources.Sound of helicopter begins, then a couple of seconds later video cuts to a police chopperCOLLINS (VOICEOVER) CONTINUES: It is a key component in many 911 systems.Helicopter sound track in background fades to voice of dispatcher calling for police or ambulance: …traffic moving eastbound on Wilkinsonboulevard…COLLINS (VOICEOVER) CONTINUES: The circuit is a feature of IBM’s establishment controller.Video of hospital operating room activityCOLLINS (VOICEOVER) CONTINUES: The design is used in many hospital computers.Video cuts to scene of bank tellers at workCOLLINS (VOICEOVER) CONTINUES: The IBM patented system also allows many banks to make split-second transactions.Cut to head of Michael McCoy, IBM’s lawyer, who is identified onscreen with caption that has only McCoy’s name and the phrase Patent AttorneyMcCOY: If the controller fails, the entire network goes down. It’s not a matter of losing a printer or a workstation.COLLINS (VOICEOVER): The card and controller sell for $10,000.Video cut to Collins in front of courthouseCOLLINS: It is a $2 billion business worldwide that counterfeiters have recently managed to infiltrate. The alleged counterfeiting was discovered by an IBM customer. Investigators bought what they called bogus equipment from a Charlotte firm in a sting operation.Collins holding papers he waves at cameraCOLLINS: Invoices on various equipment purchases reveal the extent of the operation.Video cuts to exterior shot of building, presumably where the defendant’s business is housedCOLLINS (VOICEOVER): IBM alleges in a Federal lawsuit the American Data Company in Matthews is a high tech chop shop.Video cuts to closer exterior shot of buildingCOLLINS: The suit claims American Data is cannibalising IBM equipment to fabricate circuit boards and falsely using the IBM name to profit on an inferior product. Six other companies in five states that deal in used computer parts are also named in the suit.Video shows map of US with five states flashing yellow, then cuts to photos of some circuit boards as a hand (unidentified) points to details.MCCOY (VOICEOVER): You can see here where excessive heat has damaged the circuit board. And on this one you can see they have cut pins off of this integrated circuit here and in here. They even mimic the label on this side.COLLINS: IBM software is also allegedly being counterfeited.Video cuts to disketteCOLLINS (VOICEOVER): The company says there is no guarantee the disks won’t harm the system as well.McCOY: We don’t know how widespread the practice is. We may have found the tip of the iceberg, we may have found all of it.
On Monday October 19 an updated story was broadcast on WCNC. It was essentially the same as the first one… but the reaction of defendant Don Cullars had been added after the coverage of IBM’s assertions.
Video clip opens with shot of news team captioned Peggy Fox and Tom MillerMILLER: Counterfeit computer equipment is allegedly being substituted for the real thing. The equipment is commonly used in 911 communications by hospitals and banks.FOX: According to the suit filed by IBM in Federal Court, inferior copies of their products are being made Charlotte.
News 36 reporter David Collins has our exclusive story.The video then proceeds as before except that the sequence showing the map of US with five states flashing yellow is moved up and…
COLLINS: Seven corporate defendants in five states that deal in used computer parts are also named in the suit. Video cuts to exterior shot of buildingCOLLINS (VOICEOVER): IBM alleges the American Data Company in Matthews is part of the counterfeit operation.Video shows head shot of Don Cullars talkingCULLARS: We don’t have the capability of manufacturing these boards and we never have manufactured them. We’re a legitimate company. We’ve been in business here for 10 years in the Charlotte area.Video switches to the interior of Cullars’ businessCULLARS: We deal with some of the largest companies in the Carolinas. And we mainly deal in non-IBM equipment.Video shows stacks of Memorex cartons in warehouseCOLLINS (VOICEOVER): The firm’s warehouse is exclusively full of Memorex and Telex computer equipment. Company owner Don Cullars says it’s possible his firm was used without his knowledge as a middle-man.Video of Cullars’ talking headCULLARS: It’s possible. We do buy IBM equipment from other dealers. We do not inventory it here in Charlotte. We don’t inventory it anywhere.Video of David Collins at desk in newsroomCOLLINS: Now American Data is confident the company will be exonerated. Meanwhile, IBM’s investigation continues. In addition to money, IBM wants the defendants to surrender the counterfeit products and notify customers the equipment was not made by IBM. End of news item.
