BREAKING NEWS: Canon Takes Aggressive Legal Step Against Aftermarket Companies

BREAKING NEWS: Canon Takes Aggressive Legal Step Against Aftermarket Companies                                      

Yesterday (February 28, 2018), Canon dropped a legal bombshell on the aftermarket industry by filing a lawsuit under section 337 of the Tariff Act for Toner Cartridges and Components against a total of 48 companies, from China, Hong Kong, and 13 States in the US. The suit claims violation of the following 9 patents:

• 
  9,746,826 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
• 9,836,021 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
• 9,841,727 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
• 9,841,728 - Process cartridge having changeable relative positioning of a coupling member and another part of the process cartridge
• 9,841,729 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
• 9,857,764 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
• 9,857,765 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
• 9,869,960 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
• 9,874,846 - Process cartridge, electrophotographic image forming apparatus, and electrophotographic photosensitive drum unit
•  

The named defendants in the suit are listed below. There is a speculation, however, that many more companies may be involved later, especially dealers or distributors that import compatible products to European regions.

1. Ninestar Corporation, China
2. Ninestar Image Tech Limited, China
3. Ninestar Technology Company, Ltd., City of Industry, California
4. Apex Microtech, Ltd., Hong Kong
5. Static Control Components, Inc., Sanford, North Carolina
6. Aster Graphics, Inc., Placentia, California
7. Jiangxi Yibo E-tech Co., Ltd., China
8. Aster Graphics Co., Ltd., China
9. Print-Rite Holdings, Ltd., Hong Kong
10. Print-Rite N.A., Inc., La Vergne, Tennessee
11. Union Technology Int’l (M.C.O.) Co., Ltd., Macau
12. Print-Rite Unicorn Image Products Co., Ltd., China
13. Kingsway Image Co., Ltd., d/b/a Zhu Hai Kingway Image Co., Ltd, China
14. Ourway Image Tech. Co., Ltd., China
15. Ourway Image Co., Ltd., China
16. Zhuhai Aowei Electronics Co., Ltd., China
17. Ourway US, Inc., City of Industry, California
18. Acecom, Inc.-San Antonio, d/b/a InkSell.com, San Antonio, Texas
19. ACM Technologies, Inc., Corona, California
20. Arlington Industries, Inc., Waukegan, Illinois
21. Bluedog Distribution, Inc., Hollywood, Florida
22. Do It Wiser, LLC, d/b/a Image Toner, Alpharetta, Georgia
23. EIS Office Solutions, Inc., Houston, Texas
24. eReplacements, LLC, Grapevine, Texas
25. Frontier Imaging, Inc., Compton, California
26. Garvey’s Office Products, Inc., Niles, Illinois
27. Global Cartridges, Burlingame, California
28. GPC Trading Co., Limited, d/b/a GPC Image, Hong Kong
29. Hong Kong BoZe Co., Limited, d/b/a Greensky, Hong Kong
30. Master Print Supplies, Inc., d/b/a HQ Products, Burlingame, California
31. i8 International, Inc., d/b/a Ink4Work.com, City of Industry, California
32. Ink Technologies Printer Supplies, LLC, Dayton, Ohio, 
33. LD Products, Inc., Long Beach, California
34. Linkyo Corp., d/b/a SuperMediaStore.com, La Puente, California
35. CLT Computers, Inc., d/b/a Multiwave and MWave, Walnut, California
36. Imaging Supplies Investors, LLC, d/b/a SuppliesOutlet.com, SuppliesWholesalers.com, and OnlineTechStores.com, Reno, Nevada
37. Online Tech Stores, LLC, d/b/a SuppliesOutlet.com, SuppliesWholesalers.com, and OnlineTechstores.com, Grand Rapids, Michigan
38. Kuhlmann Enterprises, Inc., d/b/a Precision Roller, Phoenix, Arizona
39. Print After Print, Inc., d/b/a OutOfToner.com, Phoenix, Arizona
40. Fairland, LLC, d/b/a Proprint, Anaheim Hills, California
41. Reliable Imaging Computer Products, Inc., Northridge, California
42. Apex Excel Limited, d/b/a ShopAt247, Rowland Heights, California
43. The Supplies Guys, LLC, Lancaster, Pennsylvania
44. Billiontree Technology USA, Inc., d/b/a Toner Kingdom, City of Industry, California
45. FTrade Inc., d/b/a ValueToner, Staten Island, New York
46. V4INK, Inc., Ontario, California
47. World Class Ink Supply, Inc., Woodbury, New Jersey
48. 9010-8077 Quebec, Inc., d/b/a Zeetoner, Canada
49. Zinyaw, LLC, d/b/a TonerPirate.com and Supply District, Houston, Texas

Canon is suing nearly all of the large aftermarket manufacturers from China as well as dealers and/or distributors from the US who have been selling compatibles. One notable exception to companies targeted appears to be those who sell remanufactured products, such as Zhuhai Mito Color Imaging Co., Ltd.,, who was not included in the suit. As compatibles have become more acceptable and popular among consumers and their quality has steadily and rapidly improved, especially during this past year, the growing competition has greatly impacted OEMs by eroding their market share and taking a strong toll on their sales revenues. Industry insiders claim that Canon has been collecting samples in preparation for this lawsuit at least six months prior to filing.

We will have to wait and see how this lawsuit unfolds and closely monitor its impact on the aftermarket industry.



Reposted from Industry News