Nowhere in the industry have the effects of the technology downturn been felt more than in the optical networking sector. Nortel recognizes the impact of this environment on the resale market and collaborates with resellers and buyers to legitimize transactions for the secondary market, while ensuring that customers' contracts and Nortel policy are not compromised. At the same time, we verify that secondary market equipment continues to meet Nortel stringent technical requirements so you can be assured of the safety, reliability and integrity of Nortel systems using hardware purchased on the secondary market.

We do this through our Secondary Market Assurance program which enables buyers to benefit from the capital savings of secondary market optical equipment without jeopardizing the performance of their network and business - establishing an industry-leading win-win proposition for secondary market equipment transactions.

Most Nortel equipment, including circuit packs, either contains firmware (software embedded on a chip) or cannot be used without operating software. Nortel software (including firmware) is licensed, not sold. Accordingly, software (including firmware) cannot be transferred without Nortel express written authorization.

Recognizing that equipment transfers need to occur, Nortel developed a program to support this activity. The program is designed to do the following:

• facilitate transfers of equipment on the secondary market by offering software re-licensing options;
• enhance the value of Nortel hardware in the secondary market;
• ensure the safety, reliability and integrity of networks utilizing hardware purchased on the secondary market.

Like software, warranties cannot be transferred; however, as part of this program, ongoing support is made available to purchasers of secondary market equipment.

Nortel commits significant resources to developing, improving and protecting its products, including software, for the benefit of its customers and vigorously enforces its intellectual property rights to ensure that each customer is treated fairly.

For more information regarding the Optical Secondary Market Program, please contact Len Anderson at landersn@nortel.com or call our Ottawa, Ontario Canada office at 613-765-4668.