Lexmark Wins Round 1 in Toner Cartridge Copyright Claim

A U.S. District Court Judge issued a preliminary injunction last week in favor of printer manufacturer, Lexmark, against Static Control Components Inc. of Sanford, N.C., ruling that Static Components is prohibited from making and/or selling computer chips that allow remanufactured toner cartridges to work with Lexmark printers. Lexmark sought an injunction against Static Control under the Digital Copyright Millennium Copyright Act of 1988, which was enacted by Congress to protect music files from being downloaded, copied and distributed in copyright violation over the Internet. Lexmark had installed a special computer chip in its cartridges to keep competitors from providing their own brand of replacement cartridges for Lexmark printers, since often the printers wouldn't work without the Lexmark chip. Static Control had designed its 'Smartek' chip that allowed non-Lexmark branded replacement cartridges to work with Lexmark printers. Makers of remanufactured toner cartridges have objected strongly to the Court's ruling, saying it is a means for big time manufacturers to charge outrageous prices for the same product by claiming that it is part of a "proprietary" process. Manufacturers of printers, such as Lexmark, normally make very little profit on the actual retail price of printers, but make their profit on the back end of product support with the sales of toner cartridges or replacement ink cartridges. Static Control said the ruling is just the end of "Round 1" and that they expect to offer a chip that will comply with the District Court's order.

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