Nortel wins $10 mln judgement in warranty case

(Figures in U.S. dollars unless noted)

TORONTO, Sept 7 (Reuters) - Nortel Networks Corp (NT.TO: Quote, Profile, Research, Stock Buzz) (NT.N: Quote, Profile, Research, Stock Buzz), North America's biggest maker of telephone gear, has won a $10 million court judgment against two U.S. companies it accused of selling its equipment through a warranty-fraud scheme.

Nortel had alleged that the Oklahoma companies, SMC Electronics LLC and Allied Solution Technical Center LLC, claimed to be operating a network under a Nortel warranty and received replacement parts for free.

The two companies then re-sold the warranty parts, Toronto-based Nortel alleged in the suit, first filed last summer.

Nortel's claims included trademark infringement, fraud, breach of contract and deceptive acts and practices.

"We are very pleased with the outcome in this case," a Nortel spokesman said on Friday. "This is a victory in the ongoing worldwide fight against piracy and demonstrates our commitment to putting an end to gray market fraud."

A judgment issued in late August by U.S. District Court for the Western District of Oklahoma ruled the two companies have to pay Nortel $10 million for damages, lawyers' fees and costs.

Nortel shares were down 9 Canadian cents at C$17.95, on the Toronto Stock Exchange.