Court rebuffs second attempt to shut down cartridge refillers via DMCA

[David Farber <dave () farber net>]

------ Forwarded Message
From: Brett Glass <brett () lariat org>
Date: Mon, 21 Feb 2005 09:17:31 -0700
To: <dave () farber net>, Ip ip <ip () v2 listbox com>
Subject: Court rebuffs second attempt to shut down cartridge refillers via
DMCA

This just in:

> FOR IMMEDIATE RELEASE   February 21, 2005
> Contact:  Charles Taylor
>     Director of Media Relations
>     919-774-3808 x 1584
>
> SIXTH CIRCUIT RULES IN FAVOR OF STATIC CONTROL COMPONENTS...AGAIN
>
> Sanford, NC.-The United States Court of Appeals, Sixth Circuit, responding
> to a request by Lexmark International, Inc. for a re-hearing, ruled
> against the Lexington-based company in a decision announced Wednesday.
>
> In late October, the Sixth Circuit vacated an order by Judge Karl
> Forester, who granted a preliminary injunction in February of 2003 banning
> the sale of Smartek replacement chips by Static Control Components for the
> Lexmark cartridges.
>
> Immediately following the ruling, Lexmark filed a motion for re-hearing.
> The Sixth Circuit denied that request on February 15th.
>
> "This is a very gratifying decision," said SCC CEO Ed Swartz, on the
> latest setback for Lexmark.  "We feel that the public interest has been
> served by a knowledgeable court to not allow a greedy OEM to use the law
> to perpetuate an electronic monopoly.  Consumers and justice have been
> served."
>
> On December 30, 2002, Lexmark filed a lawsuit against SCC. In the suit
> Lexmark claimed that SCC's Smartek 520/620 chips violated the Digital
> Millennium Copyright Act of 1998.
>
> "We have asserted from the outset that this is a blatant misuse of the
> DMCA. The Sixth Circuit's ruling and the court's decision not to hear
> Lexmark's request for another hearing solidifies and supports our position
> that the DMCA was not intended to create aftermarket electronic
> monopolies," said Swartz, who pointed out that such monopolies could cost
> consumers billions of dollars each year.
>
> According to SCC General Counsel William London, "The case is scheduled
> for trial in December of 2005 on what remains of Lexmark's claims, and on
> Static Control's claims against Lexmark for violating several state and
> federal antitrust and anticompetitive statutes."
>
> Static Control Components, which employs over 1,300 people in Sanford,
> North Carolina accounts for over $300 million in annual sales. The primary
> market for Static Control Components is the laser toner cartridge
> remanufacturing market. Static Control supplies over 3,000 replacements
> parts to over 10,000 remanufacturers all over the world.


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