EPSON SETTLES WITH INK CTG RETAILERS

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Date: Wednesday October 17, 2007 12:02:00 pm
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    Epson Settles With Internet Retailer
    October 
    2007 Epson has entered a settlement agreement in its patent
    infringement lawsuit with one of the largest Internet retailers of
    aftermarket cartridges for Epson inkjet printers.

    The
    settlement with E-Babylon Corp. dba 123inkjets.com and 411inkjets.com,
    a subsidiary of Valueclick Inc., resulted from a patent infringement
    lawsuit filed in June 2007 by Epson Portland Inc., Epson America Inc.,
    and Seiko Epson Corp. in the U.S. District Court in Portland, Ore.,
    against four resellers alleging infringement of a total of 18 patents
    that cover innovations in on-carriage cartridges for Epson desktop
    inkjet printers and off-carriage cartridges used in certain large
    format inkjet printers for graphic arts printing. E-Babylon admitted
    infringement and enforceability of the patents and agreed to a
    permanent injunction that prohibits further infringements. Financial
    terms of the settlement are confidential.“We commend E-Babylon for
    deciding to respect Epson’s patents and compete fairly,” said Elizabeth
    Leung, director, Consumer Supplies, Epson America Inc. “We will
    continue taking all necessary steps to vigorously defend our
    intellectual property rights and our investments in R&D against
    infringement and other unfair competition at every stage of the supply
    chain from manufacturing to distribution.”

    Epson has taken
    aggressive measures worldwide to protect the company from unfair
    competition of all types, including a 10-year history of successful
    patent and trademark enforcement in the United States to protect its
    intellectual property rights relating to ink cartridges. Most recently,
    Epson prevailed in a trial against 24 respondents accused of
    infringement in an ITC action. The judge made an Initial Determination
    that all cartridges accused in the case infringe Epson’s patents and
    recommended a General Exclusion Order that would bar all imports of
    such infringing cartridges. The ITC is scheduled to issue a Final
    Determination on Oct. 19 regarding the judge’s recommendations.Epson
    has set up a web site at http://itc.epson.com to provide importers and
    resellers with timely information about the ITC action and orders. The
    respondents in the ITC case are believed to supply most of the
    cartridges sold by the defendants in Epson’s latest lawsuit. Epson
    anticipates that it may have to file additional lawsuits against
    retailers to limit unfair competition and assure the payment of any
    damages because some ITC respondents are continuing sales to U.S.
    retailers while limiting their direct presence in the U.S. and not
    actively defending the ITC action.

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