*NEWS*UPSTARTS SPREADS IN THE INK WARS

Toner News Mobile Forums Latest Industry News *NEWS*UPSTARTS SPREADS IN THE INK WARS

Date: Wednesday November 2, 2005 10:14:00 am
Viewing 1 post (of 1 total)
  • Author
    Posts

  • Anonymous
    Inactive

    HP opens new front in war on refillers
    One more cartridge reseller has been accused of violating some of HP’s 4,000 ink and cartridge patents    
    HP
    on Thursday accused a US cartridge reseller of refilling used printer
    cartridges with ink that relies on a formula for an HP-patented ink
    brand.
    In a letter to Cartridge World, HP asked the company to stop
    using inks with the same chemical composition that’s found in its
    patented brand of Vivera inks. HP holds 9,000 patents related to
    imaging and printing, 4,000 of them for consumable supplies such as ink
    and cartridges.
    Although not an official legal action, the letter to
    Cartridge World is part of a broader attempt to crack down on the ink
    cartridge refill industry, HP said.
    “HP spends millions of dollars
    annually in R&D to create innovations that benefit our customers,
    and we are rigorous in our protection of this investment,” Pradeep
    Jotwani, senior vice president of supplies in HP’s Imaging and Printing
    Group, said in a statement. “HP hopes that Cartridge World North
    America will assist its franchisees in quickly complying with the law.”
    HP
    said it found multiple instances of cartridges filled with the
    infringing ink at Cartridge World’s US franchises. The cartridges
    replace a handful of HP printer cartridges, including those numbered
    56, 57 and 78, and would be used in HP’s DeskJet consumer printers.
    Representatives
    with Cartridge World North America in Emeryville, California, and its
    home office in Adelaide, South Australia, were not immediately
    available to comment on the accusations.
    Cartridge World, commonly
    found in strip malls and in business parks, refills empty inkjet
    cartridges from printer makers such as HP, Epson, Canon and Lexmark
    International and sells them at heavily discounted rates. For example,
    Cartridge World sells an HP 56-compatible cartridge for $17.72 instead
    of its usual retail price of $35.35 (£10.03 instead of £20.02). A
    discounted HP 78-compatible cartridge that retails for $53.07 sells for
    $26.57 under Cartridge World pricing.
    Separately, HP said it settled its false-advertising lawsuit against Rhinotek Computer Products of Carson, California
    Rhinotek
    acquires used HP ink cartridges and refills them with generic ink prior
    to resale. HP’s suit alleged that Rhinotek’s packaging failed to tell
    consumers that the “compatible” products are used.
    Rhinotek has
    denied any wrongdoing, but has agreed, among other things, to modify
    its packaging. Financial terms of the deal were not disclosed.
    HP said it is using the Cartridge World and Rhinotek cases to draw attention to its intellectual-property rights.
    “HP
    has lost more than most of the other vendors in the aftermarket because
    they sell more than any other vendor,” said John Shane, a director at
    InfoTrends/CAP Ventures and an industry expert on the ink and toner
    market.
    The estimated retail value for cartridges used in HP inkjet
    machines in the United States in 2004 was about $6.3bn, according to
    Shane. That’s just more than half the $12bn Shane estimates as the
    amount for all cartridges for all machines used for desktops last year.
    And
    even though HP printer cartridges make up the majority, the company
    itself controls only 88 percent of the retail value. The remaining
    portion of that cartridge demand goes to refilling companies such as
    Cartridge World, InkCycle and Rhinotek.
    “HP products tend to be a
    little more difficult to recreate in the generic market because the
    refilling companies can’t make print heads, but a good portion of HP’s
    cartridge business is getting eaten up,” Shane said.
    The case draws many similarities to one that HP settled in June with InkCycle.
    HP
    initially filed the lawsuit in March 2005 after it discovered that
    refilled inkjet cartridges sold under the Staples brand contained
    patent-infringing ink. HP filed the lawsuit, but reached the settlement
    before going to court. InkCycle eventually changed its ink formula.

Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.