johnnymk
01-24-2007, 04:38 AM
Computer Shopper had an article this month noting this settlement and stated that other manufacturers of printers will probably follow Epson's strategy.
http://arstechnica.com/news.ars/post/20061129-8323.html
Epson has won a series of victories in its quest to cut down on the importation and manufacture of aftermarket inkjet cartridges for its products. The company just announced that it has signed settlement agreements with multiple defendants, all of whom acknowledge that they were in violation of Epson patents.
Epson has been pursuing these companies for months, filing lawsuits against them in federal court and bringing a complaint with the US International Trade Commission early this year. Many of the companies involved have now decided to settle rather than fight the patent infringement charges. Artech (Germany), Ink Lab Co. (Hong Kong), InkTec (Korea), Inkjetwarehouse.com (Connecticut), and Rhinotek Computer Products (California) have all agreed to stop importing many kinds of aftermarket cartridges for Epson printers, a move that could make it more difficult to get inexpensive refill cartridges.
In the federal court case, Epson charged a long list of defendants (many of whom have not yet settled) with patent infringement based on two patents: 7,008,053 and 7,011,397. Both patents cover minor technical innovations in the production of inkjet printer cartridges.
In addition to the settlement agreements, three other companies have agreed to "consent orders" from the International Trade Commission that will prohibit them from importing the cartridges in question. In addition, an ITC judge has issued default judgments against eight other companies that did not respond to the accusations against them.
Keith Kratzberg, Epson America's VP for marketing, said in a statement, "We will continue to pursue the ITC action and the pending District Court lawsuit vigorously and take whatever other action may be necessary to protect Epson from unfair competition through patent infringement or the distribution of counterfeit ink cartridges."
Epson has been winning such cases around the world. In June, the company received a preliminary injunction from a Taiwan judge against U-Bar International over that company's "Continuous Ink Supply System," also on patent infringement grounds. Printer manufacturers traditionally follow the strategy made famous by Gillette, where the razor is sold cheaply (or at a loss) in order to make money on consumables like blades (or, in this case, printer cartridges). Because they have adopted this business model, manufacturers routinely try to prevent third-party companies from edging in on the consumables market.
Epson's current claims involve patent and copyright, though DMCA injunctions have been a favored tactic of other companies. Lexmark lost such a case several years ago when it implemented a trivial security system on its cartridges, then sued a third-party manufacturer for bypassing its proprietary "encryption." A judge ruled against Lexmark, and Epson has elected to take a different approach with its legal strategy. So far, it looks to be working.
http://arstechnica.com/news.ars/post/20061129-8323.html
Epson has won a series of victories in its quest to cut down on the importation and manufacture of aftermarket inkjet cartridges for its products. The company just announced that it has signed settlement agreements with multiple defendants, all of whom acknowledge that they were in violation of Epson patents.
Epson has been pursuing these companies for months, filing lawsuits against them in federal court and bringing a complaint with the US International Trade Commission early this year. Many of the companies involved have now decided to settle rather than fight the patent infringement charges. Artech (Germany), Ink Lab Co. (Hong Kong), InkTec (Korea), Inkjetwarehouse.com (Connecticut), and Rhinotek Computer Products (California) have all agreed to stop importing many kinds of aftermarket cartridges for Epson printers, a move that could make it more difficult to get inexpensive refill cartridges.
In the federal court case, Epson charged a long list of defendants (many of whom have not yet settled) with patent infringement based on two patents: 7,008,053 and 7,011,397. Both patents cover minor technical innovations in the production of inkjet printer cartridges.
In addition to the settlement agreements, three other companies have agreed to "consent orders" from the International Trade Commission that will prohibit them from importing the cartridges in question. In addition, an ITC judge has issued default judgments against eight other companies that did not respond to the accusations against them.
Keith Kratzberg, Epson America's VP for marketing, said in a statement, "We will continue to pursue the ITC action and the pending District Court lawsuit vigorously and take whatever other action may be necessary to protect Epson from unfair competition through patent infringement or the distribution of counterfeit ink cartridges."
Epson has been winning such cases around the world. In June, the company received a preliminary injunction from a Taiwan judge against U-Bar International over that company's "Continuous Ink Supply System," also on patent infringement grounds. Printer manufacturers traditionally follow the strategy made famous by Gillette, where the razor is sold cheaply (or at a loss) in order to make money on consumables like blades (or, in this case, printer cartridges). Because they have adopted this business model, manufacturers routinely try to prevent third-party companies from edging in on the consumables market.
Epson's current claims involve patent and copyright, though DMCA injunctions have been a favored tactic of other companies. Lexmark lost such a case several years ago when it implemented a trivial security system on its cartridges, then sued a third-party manufacturer for bypassing its proprietary "encryption." A judge ruled against Lexmark, and Epson has elected to take a different approach with its legal strategy. So far, it looks to be working.