On mySimon: Prince Rocking Horse
BNET Business Network:
BNET
TechRepublic
ZDNet

By Stephen Shankland
Posted on ZDNet News: Mar 28, 2005 9:37:00 PM

Hewlett-Packard, much of whose profit comes from printer supplies, has sued two companies that sell refilled ink cartridges, but it stopped short of trying to block the refill business altogether.

On Friday, HP sued InkCycle in U.S. District Court for the western district of Wisconsin, alleging that the company's ink violates three HP patents. And on Monday, HP sued RhinoTek in U.S. District Court for the northern district of California, accusing RhinoTek of false advertising by using packaging that indicates its refilled HP printer cartridges are new.

Refilling ink cartridges is "a giant problem, not just for HP, but for everybody in the printing business," said Gary Peterson, an analyst with GAP Intelligence. "I would say at least 10 to 15 percent of all consumables purchases are refills. That's a huge chunk of profit taken away from HP and all the other printer companies."

But HP said the suits aren't a change in HP's policy that customers have a right to refill legally purchased cartridges or buy refilled cartridges. "We still believe it's the customer's choice," said spokeswoman Monica Sarkar, adding that HP believes its products have better quality and reliability.

The Palo Alto, Calif., printer powerhouse requests that InkCycle stop--in HP's opinion--infringing the patents and pay damages and HP legal fees. Brad Roderick, vice president of marketing for InkCycle, said Monday that a settlement in that suit is expected soon.

"We've been in direct communication with HP and expect a very near-term full resolution," Roderick said. He declined to comment on terms or whether InkCycle will continue to sell its products, but he said, "We're a company that has always been respectful of intellectual-property rights."

The ramifications of the InkCycle case could spread beyond the company if it's using ink that other refillers use as well. Roderick wouldn't comment on the origin of the company's ink.

In the Rhinotek case, HP asserts that the company's "packaging and promotional materials are calculated to give consumers the impression that defendants' cartridges are new." HP wants a requirement that Rhinotek use the words "used" and "refilled" prominently on its packaging of refilled HP ink cartridges. HP also wants all Rhinotek profits from the time of the alleged deceptive advertisements.

Rhinotek didn't immediately respond to requests to comment for this story.

HP has been less aggressive in legal attacks against printer supply companies than one rival, Lexmark. HP lashed out against Lexmark's attempt to use the Digital Millennium Copyright Act, or DMCA, to stop ink refillers.

"We think it is stretching it," HP printing unit exec Pradeep Jotwani said in a 2003 interview. "The DMCA was put in place (to protect) things like movies, music and software applications."

"We consciously make sure that our cartridges are reusable and refillable," Jotwani said at the time. The company does put some limits on the practice, such as adding software that makes some of its cartridges unusable after a certain expiration date--either four-and-a-half years after its manufacture or two-and-a-half years after its installation.

In the case against InkCycle, HP claimed the company has violated three patents: Nos. 5,165,968; 5,428,383 and 5,488,402. The first concerns fast-drying ink that works well on plain paper, and the second two concern methods for preventing color from bleeding.

HP said in its suit against Rhinotek that it holds 9,000 patents related to imaging and printing, 4,000 of them for consumable supplies such as ink and cartridges.

CNET News.com's Ina Fried contributed to this report.

SponsoredWhite Papers, Webcasts, and Downloads

  • Talkback
  • Most Recent of 57 Talkback(s)
Resetting chips
I once had a gadget that reset the chip attached to the cartridge, but can't remember the brand.
As far as "Color Labs", I can't find the company listed that does this. The only Color Labs I found... (Read the rest)
Posted by: waltermas@... Posted on: 07/25/09 You are currently: a Guest | | Terms of Use
I really do not undestand  Squawkbox | 03/28/05
But then HP couldn't make 97% margins on the carts. (nt)  Letophoro | 03/28/05
97% ?  BitTwiddler | 03/29/05
97%?  beepster | 03/29/05
New vs Refill...  agohige | 03/29/05
HP suses  Michael_22 | 03/28/05
I suspect that is the business model  NonZealot | 03/28/05
You are right  Bill4 | 03/28/05
Depends on your needs  drabicky | 03/28/05
high rez color?  Joe Blow_z | 03/28/05
NZ...  BitTwiddler | 03/29/05
Canon all the way!  Spoon Jabber | 03/29/05
Spoon...Man I've missed you!!!  Laff | 03/29/05
I'll try!  Spoon Jabber | 03/29/05
I thought the T-shirt was pushing it...heh heh heh  Laff | 03/29/05
Bleeding hearts?  fmiller | 03/29/05
You're right miller  Spoon Jabber | 03/29/05
Spoon that is the IRONY here!!  Laff | 03/29/05
Maybe more deception than irony  Spoon Jabber | 03/29/05
Yes once again these people I think we can agree  Laff | 03/29/05
Canon Ink Wastage  BMF_z | 03/30/05
exactly. printer carts = cd's  Valis Keogh | 03/28/05
Absolutely... breaking patent for making money on supplies.  FirstNLastN | 03/28/05
Refill your printer cartridge tell it to the Judge!  soulcircus | 03/28/05
Who hired Lexmark's lawyers?  Hugh Jass | 03/28/05
LexMark  James T. Kirk | 03/29/05
there is no magical secret sauce to it.  Joe Blow_z | 03/28/05
And I should not buy cheaper cartridges why?  klmmicro | 03/29/05
One case where patents make sense  johndoe445566 | 03/29/05
Plus  Spoon Jabber | 03/29/05
You have to consider our current political environment...  BitTwiddler | 03/29/05
Really?!?  Spoon Jabber | 03/29/05
thats silly  jeanabraham | 03/28/05
Buy a different printer  jorwell | 03/29/05
LOL...I did exactly that  bweir13 | 03/29/05
Did you get a full ink cartridge?  jimbo_z | 03/29/05
Get hip to PR lingo man!  Spoon Jabber | 03/29/05
I hope so  bweir13 | 03/29/05
By the time startup cartridges run out, you're stuck  jjon2121 | 03/29/05
If only the inks were not exorbitantly priced.  kraterz | 03/29/05
Yeah, right.  James T. Kirk | 03/29/05
Um..... WAHHHHHHH!!!!!!!  BitTwiddler | 03/29/05
*APPLAUDS* Completely agree!  CobraA1 | 03/29/05
to be perfectly clear  haiki | 04/27/06
REASONABLE price  rhammock | 03/29/05
Class Action aginst HP  GaryM_z | 03/29/05
wow  Been_Done_Before | 03/29/05
Half Truth  fmiller | 03/29/05
RESETTING CHIPS...YES U CAN  tishy99 | 03/29/05
Resetting chips  waltermas@... | 07/25/09
No refill - no buy printer  TrustMe_z | 03/29/05
HP's last revenue stream  Art Royce | 03/29/05
just one more reason not to use an hp printer.  wessonjoe | 03/29/05
Do it yourself!  mrobzo | 03/29/05
Yes they are  wbs00001 | 03/29/05
HP full of crap  FilledOut | 03/30/05
About time HP!!!!  BMF_z | 03/30/05

What do you think?

SmartPlanet

Click Here