Saturday, February 27, 2016

Lexmark vs Impression Products

Lexmark vs Impression Products: A case with bigger implications than printing

Overview:

Originally the case began about laser ink cartridges. However, the implications and precedent set by the court, in favor of Lexmark, drew in corporate giants from biotechnology and high tech.


Background:
Lexmark is a large manufacturer of printers and ink. Most of their revenue stems from selling toner to consumers for their specific printers. The company has both reusable cartridges and one-time use cartridges. Consumers are able to return their cartridges back to Lexmark for a refilled or recycled cartridge through their authorized distribution channel. 

However, Impression Products decided to get into their cartridges and refill them for consumers. Essentially, stealing from Lexmark's business stream of redistributing cartridges for proprietary printers. 

The Verdict:
The Federal Appeals court ruled that Impression Products infringed on Lexmark's patent on ink because it did not have authorization to bypass Lexmark and provide ink for consumers. 

Why is this important?

Corporations sighed relief and see more money on the horizon with this verdict. Essentially, they have control of their products and how consumers are able to utilize their products after the sale. This can be similar to how Apple does not allow "Jail-breaking" of devices, which voids the warranty. 


Sources:
http://www.reuters.com/article/us-lexmark-intl-impression-products-idUSKCN0VL1MZ
http://patentlyo.com/patent/2015/04/lexmark-impression-facts.html



No comments:

Post a Comment