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Pakistani Reseller Sues Zoom for $2.2 Million in Unpaid Commissions

  • June 10, 2024
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Pakistani technology consultancy D-Tech Consultancy is suing video conferencing giant Zoom for $2.2 million in unpaid commissions and damages.

D-Tech, based in Karachi, claims they were authorized resellers for Zoom in Pakistan, responsible for securing deals with universities, government departments, and large corporations. The lawsuit alleges that D-Tech successfully brought in these high-profile clients, including the Central Directorate of National Savings, IMAGE Garments, IBEX Pakistan,Benazir Income Support Program (BISP), RIPHAH University, University of Sindh, and Sindh Education and Learning Department, but Zoom failed to pay the agreed-upon commissions.

The lawsuit adds to the mystery as D-Tech has a relatively low profile and Zoom has remained silent on the allegations.Details regarding how D-Tech secured these contracts and the lack of response from Zoom have cast a shadow over the business dealings between the two companies.

D-Tech claims their partnership with Zoom began in August 2022 and they were designated a Strategic Partner in January 2023 after securing several deals for Zoom, including video conferencing licenses and Contact Center services. The lawsuit specifies that D-Tech’s commissions were to be calculated based on industry standard terms and conditions set by Zoom for its partners.

D-Tech further alleges they played a key role in helping Zoom enter the Pakistani market for its new Contact Center product by securing deals with four clients. They claim Zoom offered the service free for the first year but required clients to sign a three-year agreement.

The lawsuit centers on two types of agreements between D-Tech and Zoom: one-time referral agreements for some clients and SPIFF commissions for new clients based on recurring revenue generated. D-Tech alleges they fulfilled their part of the agreement by securing the clients and submitting the necessary paperwork, but Zoom failed to pay the agreed-upon commissions.

With both companies silent on the issue, the lawsuit will likely be closely watched to see how it unfolds and what light it sheds on the business dealings between international tech giants and their Pakistani partners.

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