Should a preliminary injunction this week against a maker of remanufactured printer cartridge components be made final, it could have massive impact for the local remanufactured market, says a local player.
Lexmark was granted the injunction against Static Control, a North Carolina company which makes the Smartek chip that renders less expensive remanufactured cartridges (inkjet and laser) compatible with Lexmark`s printers. Static Control supplies local reseller/distributor Toptronics, which remanufactures and distributes remade cartridges into the local market.
Toptronics has taken on international vendors of expensive consumables (Hewlett-Packard, Lexmark, Canon and others) with some success, estimating that the local remanufactured laser cartridge market is about 15% of the total laser consumables market. Its selling points include a lower price, quality control and green issues of recycling, as well as local skills transfer.
Toptronics MD, Sarah Beddow, says although Lexmark has not said it would act against the likes of Toptronics locally, a final injunction could have serious consequences.
"At the moment, this injunction against making or selling these products will not make a dent in our stocks," she says. "But should it be made final, this could affect the market badly."
Cathryn Steyn, marketing spokesperson for Lexmark SA, disagrees with Toptronics` assertion that remanufactured products can be of a quality that is acceptable to consumers. "I have yet to come across a remanufactured cartridge that is of a quality that is comparable with originals." Steyn claims laser cartridges sometimes explode when remanufactured, and inkjet cartridges can leak severely, affecting warranties.
The injunction was based on alleged software copyright infringement, which means Static Control could satisfy the court`s requirements with a change in its technology. In a statement issued by Static Control, it says it is confident this could happen "in weeks", but says it would suffer a projected loss of millions of dollars over two years if the chips cannot be sold.
The case is expected to last several years.
Share
