*NEWS*INJET REFILLER LASHES OUT @ HP !

[Anonymous]

Inkjet refiller lashes out at HP for lawsuit

Rhinotek’s chairman has sharply criticized Hewlett-Packard over a lawsuit
asserting that the inkjet cartridge refiller falsely advertises its products as
new.

“I think HP is utilizing a bullying tactic,” Gerald Chamales, who also is
founder of the 150-employee company in Carson, Calif., said late Tuesday. “I
think consumers are tired of being gouged by what I call the cartel, which is
the major printer manufacturers, led by HP, Lexmark and Canon, (and which is)
forcing people to not have a choice when it comes to ink and toner cartridges.”

However, Rhinotek hasn’t determined its legal response yet. “We are
considering all our legal options. We intend on defending ourselves vigorously,”
Chamales said. “We’re considering filing a countersuit for antitrust and
business disruption for frivolous litigation.”

HP, based in Palo Alto, Calif., sees things differently. “We’re not forcing
people to use any particular cartridge. We just think it’s wrong to sell our
used cartridges without telling people they are used HP cartridges,” company
spokeswoman Monica Sarkar said.

HP sued rhinotek for false advertising,
arguing that the company falsely advertises its recycled HP inkjet cartridges as
new. HP also sued another company, Lenexa, Kan.-based InkCycle, for using ink
that HP said infringes on three of its patents.

Consumables, which are printer supplies such as inkjet cartridges, laser
printer toner cartridges and glossy photo paper, are a major revenue source for
HP and other printer manufacturers. Companies that remanufacture or refill the
cartridges cut into the resulting profits, though HP argues it doesn’t object to
the refilling business in general.

HP wants Rhinotek to label its cartridges as used, and it objects to the
company’s packaging, which calls the products “heavy duty.”

Chamales said “heavy duty” describes the ink, which lasts as long as HP’s or
longer.

“I think our packaging is fine. We put on there, ‘manufactured with recycled
components,'” he said.

Rhinotek’s packaging doesn’t use quite those words, however. Under the words
“Help the Environment,” the packaging says, “At Rhinotek we do everything we can
to encourage recycling. We use recycled components in our packaging and products
whenever
possible.”
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 HP accused of bullying in recycled-cartridge suit

“I think HP is utilising a bullying tactic,” Gerald
Chamales, who also is founder of the 150-employee company in Carson, California,
said late on Tuesday. “I think consumers are tired of being gouged by what I
call the cartel, which is the major printer manufacturers, led by HP, Lexmark
and Canon, [and which is] forcing people to not have a choice when it comes to
ink and toner cartridges.”

However, Rhinotek hasn’t determined its legal response yet.
“We are considering all our legal options. We intend on defending ourselves
vigorously,” Chamales said. “We’re considering filling a countersuit for
antitrust and business disruption for frivolous litigation.”

HP, based in Palo Alto, California, sees things differently.
“We’re not forcing people to use any particular cartridge. We just think it’s
wrong to sell our used cartridges without telling people they are used HP
cartridges,” company spokeswoman Monica Sarkar said.

HP sued Rhinotek on Monday for false advertising, arguing
that the company falsely advertises its recycled HP inkjet cartridges as new. HP
also sued another company, Lenexa, Kansas-based InkCycle, for using ink that HP
said infringes on three of its patents.

Consumables are a major revenue source for HP and other
printer manufacturers. Companies that remanufacture or refill the cartridges cut
into the resulting profits, though HP argues it doesn’t object to the refilling
business in general.

HP wants Rhinotek to label its cartridges as used, and it
objects to the company’s packaging, which calls the products “heavy duty.”

Chamales said “heavy duty” describes the ink, which lasts as
long as HP’s or longer.

“I think our packaging is fine. We put on there,
‘manufactured with recycled components,'” he said.

Rhinotek’s packaging doesn’t use quite those words, however.
Under the words “Help the Environment,” the packaging says, “At Rhinotek we do
everything we can to encourage recycling. We use recycled components in our
packaging and products whenever possible.

[Author]

April 4, 2005 at 11:11 AM