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B&W Puts Pressure on Transshippers

The practice of "Transshipping"---selling a product outside one's designated territory---is widespread in the audio industry. It's commonplace for dealers to sell not only to walk-in customers, but also over the telephone or Internet to customers in other dealers' territories, usually at discounted prices. While not problematic on a small scale, the practice favors large-volume dealers over smaller ones, and is almost always a violation of a dealer's agreement with a manufacturer.

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Microsoft Enters PC Audio Market

Software giant <A HREF="http://www.microsoft.com">Microsoft Corporation</A> has entered the audio market with a satellite-and-subwoofer speaker system for use with personal computers. The Digital Sound System 80 made its debut at this year's Electronics Entertainment Expo (E3), held May 28-30 in Atlanta's World Congress Center. The system was designed in conjunction with <A HREF="http://www.philips.com">Philips Electronics NV of the Netherlands</A>, one of the world's largest electronics companies.

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