Israel's Elbit Systems Ltd. and its Australian subsidiary are being taken to court in Australia over alleged misrepresentation.

Australian firm Faxtech Pty Ltd -- trading as Point Trading - alleges that Elbit and its subsidiary, ITL Optronics Limited, have made serious misrepresentations to the Australian Department of Defense in regard to Point Trading's exclusive rights to supply the Mini N/SEAS night vision monocular, N/CROS binoculars and other ITL products in Australia and New Zealand.

Point Trading claims that the "misrepresentations constitute misleading and deceptive conduct," and is asking a federal court for an injunction to stop Elbit, ITL and Elbit Systems of Australia Pty Ltd, from continuing to make misleading statements about Point Trading's rights.

Point Trading says Elbit has attempted to circumvent the contract ITL signed with Point Trading by signaling to the Department of Defense to stop purchasing from Point Trading and to deal directly with Elbit and ITL. In doing so, Elbit has not only ignored the terms of the contract ITL signed with Point Trading but has damaged the business and reputation of a long-standing Australian company and jeopardized highly skilled Australian manufacturing jobs, it said.

"We have been supplying these products to the defense departments in Australia and New Zealand for over 20 years, and overnight Elbit has jeopardized the goodwill in our business," Avner Klein, chief executive officer of Point Trading Group, said. "By attempting to deal direct with our customers, Elbit is simply trying to tie up the market and put Australian manufacturers out of business.

Point Trading has been the exclusive supplier of the ITL Optronics Mini N/SEAS and N/CROS product lines in Australia and New Zealand since 1989. In 2010 it signed a an agreement with ITL Optronics, under the terms of which ITL agreed to provide Point Trading with the right to locally manufacture, assemble and service night vision products until at least 2020.

Point Trading says that in that agreement, ITL also promised it wouldn't market, sell or manufacture the products directly or indirectly in Australia or New Zealand.

"It was becoming increasingly clear that ITL was unable to meet its commitments to Point Trading and so we took the important step of securing supply for Australia and New Zealand by buying the rights to the products," said Klein.

"Point Trading paid ITL for exclusivity rights for the manufacture and further development of the Mini N/SEAS and N/CROS products and obtained production process files, including drawings and processes, and letters of authority to be the exclusive supplier for the Australian and New Zealand Market until 2020."

Elbit Systems bought a majority share in ITL in October 2010 and since then has constantly attempted to circumvent the existing contract and damage Point Trading's business by trying to trade direct in order to cut out Australian businesses, Point Trading alleges.

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