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Japan : Ink Cartridge Remanufacturer Sues Canon for Breach Of Antimonopoly Act
Plaisir Corp., S.T. Sangyo Co., Ltd. Sue Canon for Antimonopoly Act Breach
Earlier today, Plaisir Corporation, a seller of compatible ink cartridges for inkjet printers based in Naniwa-ku, Osaka, and S.T. Sangyo Co., Ltd., the manufacturer of the cartridges based in Chuo-ku, Tokyo, filed litigation in the Osaka District Court against Canon Inc., a manufacturer and seller of inkjet printers and corresponding genuine ink cartridge consumables based in Otaku, Tokyo.Canon’s genuine ink cartridges are provided with IC chips and visible-light LEDs that emit visible light rays, and its inkjet printers have receptors to detect the light emitted by the visiblelight LEDs in genuine ink cartridges. Plaisir and S.T. Sangyo manufactured and sold ink cartridges that are compatible with Canon’s 7e and 321 cartridge lines but differ from the genuine products with visible-light LEDs in that they feature infrared LEDs that emit infrared rays. However, Canon’s act of installing infrared filters on the receptors in its 326 cartridge line, which replaced the 321 cartridge line and have been sold since March 2011, impedes the detection of infrared rays, which prevents Plaisir and S.T. Sangyo from selling their infrared ink cartridges for these printer models.
Canon’s act of installing infrared filters has no justifiable reason, such as technical necessity, and breaches the provisions of Article 19 of the Antimonopoly Act (item 10 (tie-in purchases, etc.) or item 14 (obstruction of trade with competitors) of the Designation of Unfair Trade Practices).
By ensuring that competitors cannot manufacture and sell replacement items in the market for ink cartridges for Canon printers, Canon has significantly diminished free competition. In response to these acts excluding competitor products, Plaisir and S.T. Sangyo are demanding that Canon cease the installation of infrared filters in its inkjet printers.
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