Computer Place, Inc. v. Hewlett-Packard Co.
Opinion
Opinion
Orrick, J.
MEMORANDUM AND ORDER
Plaintiff, Computer Place, Inc. (“CPI”), has sold personal computers, calculators, and computer accessories by mail order and through a retail store in Carmel, California, since 1979. Defendant Hewlett-Packard (“HP”) manufactures, sells, and distributes to dealers a wide range of computers, computer accessories, calculators, supplies, and parts for those machines. Defendant Com-puterland, Inc. (“CL”) is a franchisor whose franchisees operate retail stores that sell those items to the public.
On June 3, 1982, HP announced a change in marketing strategy that significantly impacted its mail-order retailers. HP stated to all dealers that it had developed a program that emphasized face-to-face selling and local dealer support, as opposed to mail-order selling. The new program contained incentives to stimulate local dealer retailing. It also included a provision denying mail-order sellers the new personal computer models it developed. CPI alleges various federal antitrust and state law violations based on this change in distribution policy and the contract negotiations HP and CL were conducting at the same time.