TONER & INK CHIP WARS , S.C.C. SUES 7 COMPANIES !

[Anonymous]

TONER & INK CHIP WARS , S.C.C. SUES 7 COMPANIES ! 

Static sues Chips Inc and others over patent agreement
Static Control Components launched legal action yesterday against seven companies, including Chips Inc and American Imaging Cartridge, over a disputed cross-licensing agreement for chip patents
This latest case forms part of a long line of lawsuits focusing on a handful of hotly-contested patents relating to universal type chips, and is directly related to legal action launched in December 2010, with more actions likely in the near future.Static alleges that the defendants broke a cross-licensing agreement during the American Imaging LLC et al vs. Roman et al case, leading to several interconnected claims that may have serious implications.Static Control CEO Steve Weedon stated: “We currently have a dispute regarding the scope of a cross license agreement which we hope will be resolved in the near future”

Seven companies have been named as defendants by Static Control, all of which are owned and controlled by Steven Miller, who also holds the patents at the centre of the case. The complaint states that Chips Inc is the only company listed to actually sell chips, although all are “engaged to some degree in the laser cartridge business”.

In full, the defendants are:

Industrial Engineering & Development, Inc. (IED)

Innovative Cartridge Technologies, Inc. (ICT)

Cartridge Corporation of America, Inc. (CCA)

Pat. No. 7,551,859 Holding, LLC

American Imaging Cartridge, LLC (AIC)

Universal Imaging Holdings, LLC

Chips Incorporated
In 2007, Static Control, IED, ICT and CCA entered into a license agreement allowing the use of certain patents owned by ICT, including patent no. 7,286,774, no. 7,221,886 and no. 7,187,874, and any patents that continue from these.Static first claims that another universal chip patent, 7,551,859, is a continuation of the others and is therefore likewise covered in the agreement.In December 2010, The Recycler reported that ICT, AIC and Platinum Manufacturing International had launched legal action against 30 companies and individuals in the aftermarket, alleging infringement of the ‘774, ‘874 and ‘859 patents among others.

Some of these companies are stated to have been Static Control customers, and the company’s second claim alleges that ICT and the others “offered to dismiss their claims if the defendants […] agree to purchase their cartridge chips directly from [them] rather than from Static Control”.Static states that these would cause “irreparable” harm to the company, as it would likely lose all business from these companies, as well as the chip sales. As such, it says it is entitled to injunctive relief to enforce the terms of the cross licensing agreement, and to prevent the defendants’ alleged conditional settlement in the Roman case.

This new case may also lead to at least one other legal action from Static in the near future. The cross-licensing agreement prevents Static from challenging any of the contained patents. Static states that if the ‘859 patent is found not to be covered in the agreement, it will be fully entitled to legally challenge its validity.The upcoming April issue of The Recycler magazine features a focus on chips, and the complicated legal and technical background surrounding them.

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March 9, 2011 at 8:34 AM