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Inside ITC | |
| Lexmark Sues Several Remanufacturers; Validity of Prebate Contract Prominent | ||
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Good News for Remanufacturers
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Breaking
News Lexmark has upped the ante after its recent setback when the Sixth Circuit Court of Appeals ruled in favor of Static Control in litigation between the parties. It has brought suit against six other remanufacturing industry members. Named as defendants in the SCC case are MSE, Pendl, NER Dataproducts and IPW—and in a separate case, chip manufacturer ISV and Clarity Imaging. Two of these defendants were brought in as recently as November 8. The decision from the Sixth Circuit Court of Appeals in Lexmark International, Inc. v. Static Control Components reversed Judge Karl Forester’s decision that Lexmark stood a likelihood of success in its case against Static Control and vacated the injunction against sales of the Smartek chips. In doing so, the appellate court announced its displeasure with Lexmark’s use of copyright laws and the DMCA. With those claims cast in disfavor, Lexmark is now relying on the specious validity of the Prebate contract. The Prebate contract is a sham. The contract is allegedly an agreement between Lexmark and the end user as follows: the customer agrees to buy the cartridge for a discount if it agrees to the single use license agreement. However, many customers don’t even know that the restrictions exist at the time they purchase or acquire the cartridge. Regardless, the litigation in Lexington has now taken a decidedly dramatic turn, and every industry member will be affected, whether a party or not. And Lexmark will be seeking reconsideration of the appellate court’s decision. For more on the new lawsuits and the appellate court ruling, see the December issue of Imaging Spectrum magazine. ![]() Advertise
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