REFILL INK LAWSUITS LOOMS LARGE IN KOREA

[Anonymous]

Refill Ink Lawsuits Loom Large in Korea
November
, 2006 The world printer industry now sees a series of lawsuits over
ink patents, as printer makers aggressively defend their intellectual
properties against refill ink companies. And such moves are expected to
deal a blow to Korean refill kit makers which account for a significant
chunk of the world market.According to Bloomberg, the world’s largest
printer maker HP has filed a complaint in Germany against a subsidiary
of InkTec, a Korea-based manufacturer of inks and home refill kits, for
allegedly violating its ink patent.This is the first time that HP filed
a lawsuit against a Korean ink cartridge maker, and the company is
seeking some 1.2 billion won in damage, according to InkTec.HP has been
vigorously defending its intellectual properties in the area after CEO
Mark Herd took helm, suing U.S. office supply retailer OfficeMax in
June and Chinese cartridge maker G&G Nine Star in August this year
for patent infringement.Multinational printer makers have filed a
series of patent lawsuits targeting fast-growing Korean refill ink
makers.Earlier, the main office of Cannon sued Samsung Electronics and
Packen OPC for violating its patent laser photoconductive drum, and the
court ruled in favor of the multinational firm in last month. The
ruling hit the two refill ink makers in the both home and overseas
markets. Epson also filed a case against a domestic refill ink maker,
fueling such moves.A series of lawsuits filed by multinational printer
vendors like HP and Cannon are testament to how vigorously they guard
the lucrative ink cartridge market where they face a growing threat
from Korean refill kit makers in terms of technological prowess and
brand power.Printer makers are expected to continue filing cases
against ink, toner and drum companies, as the printer industry moves
from hardware sales to so-called after market including dispensable
products.According to market research firm Stanford C Bernstein, sales
in ink and toner business accounted for 80% of 5.6 billion dollar-worth
operating profit HP posted in last year.The rub is that multinational
printer makers now target domestic refill ink and kit makers. The
domestic printer market has been dominated by multinational vendors,
expect Samsung Electronics, and the refill ink business has managed to
help domestic firms sell products at home and abroad.”Ink patents are
like a tinderbox in the printer market,” said an industry observer.
“Domestic firms need to develop countermeasures against complaints
filed by multinational printer makers.”

[Author]

November 14, 2006 at 12:04 PM