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Lexmark Sues Static Control Components Over Copyright Infringement
Lexmark International Inc. of Lexington, Ky., filed a lawsuit Dec. 30, 2002, against Static Control Components Inc. of Sanford, N.C., over copyright infringement. The case faces a preliminary injunction hearing on Feb. 7.
The civil case, filed in U.S. District Court, alleges that the Smartek™ chips made by Static Control for Lexmark’s T520/620 series printers violate the copyright on that product, both under the Copyright Act and the Digital Millennium Copyright Act (DMCA).
A preliminary injunction hearing was set for February 7, 2003. Until the hearing, Static has agreed to "immediately cease making, selling or otherwise trafficking in the ‘smartek’ microchip … ," according to a press release from Lexmark dated Jan. 9.
"Lexmark claims they have a copyright on the chip for the 520, 522, 620 and 622," said Skip London, vice president and general counsel at Static Control in a press release. The aftermarket Smartek chips for cartridges for these printers were available from Static in September or October 2002. The suit does not affect Static’s other chips for Lexmark-type cartridges, such as those for the Optra T or Optra Se printer series.
The lawsuit is centered on the technology that allows the aftermarket chip to communicate with the printer and "authenticate" itself. Static’s chip gives access to the full functionality of the printer, including the Toner Loading and Printer Engine Programs, which Lexmark claims are copyrighted.
Industry discussion centers on the role of copyright law and the DMCA, both of which are at issue in this case. The Lexmark complaint alleges that Smartek chips violate normal copyright law because they "contain unauthorized, identical copies of Lexmark’s copyrighted Toner Loading Programs." The Digital Millennium Copyright Act of 1998 gives it a slightly different twist, though. Section 1201 specifically indicates, "No person shall circumvent a technological measure that effectively controls access to a work protected under this title."
"The potential threat if Lexmark is able to twist the intentions of the DMCA to legalize a monopoly and crush competition is chilling," said London. "If Lexmark succeeds in using copyrights to prevent the sale of aftermarket chips, then not only could printer manufacturers use their chips to dictate the type of cartridge we use, but car manufacturers could use their chips to dictate the brand of tires, parts and gas that we are allowed to buy. The ultimate economic impact to the U.S. economy would be measured in billions of dollars in higher prices consumers and businesses would be paying for a multiplicity of products."
For more information, see the following news stories covering the case:
