Two lawsuits filed in May alleging copyright infringement of chip source code and involving several major players in the remanufacturing industry could have implications for the entire industry.
On May 13, Inter Solution Ventures Ltd. (ISV), a N.Y.-based chip manufacturer, sued Calif.-based UniNet Imaging Inc. and its president, Nestor Saporiti, on grounds of copyright infringement and violation of the Digital Millennium Copyright Act (DMCA).
The civil case, filed in U.S. District Court, alleges that Lexmark aftermarket chips sold by UniNet violate the copyright on the source code that interfaces with the microchip in ISV’s TLPlus toner-loading program. The complaint alleges specifically that UniNet is "copying, using, manufacturing, selling and offering for sale products that incorporate ISV’s code."
The suit also alleges that in order to access the code, it was necessary to bypass the anti-circumvention device, which specifically controls access to the code. ISV claims that by bypassing the device, UniNet violated the provisions governing circumvention of copyright-protection systems set forth in the DMCA.
The products named in ISV’s complaint include "Lexmark aftermarket microchips, produced under names such as T520, T620, T630, Smartchip and/or Fuse." The complaint states that the chips have several similarities, including the same code, same code serial number, and code reading ISVCOPYRIGHT2003.
In addition to monetary damages not yet named, the suit seeks to enjoin UniNet and Saporiti from "engaging in further such acts in violation of the copyright laws."
At press time, no response had been filed by UniNet. Saporiti denied the allegations.
On May 25, 2004, Static Control Components of Sanford, N.C., filed suit against ISV in U.S. District Court for copyright infringement. At issue once again was the code in the Lexmark T520/522 and T620/622 chips. The complaint states that the initial version of ISV’s chip, introduced in early 2003, "contains a duplicate copy of the software Code developed and copyrighted by Static Control." It goes on to state that subsequent versions of ISV’s chips (versions 2 and 3) contained derivative work of the Static Control code.
Also named in the lawsuit was David Abraham, listed as president of ISV. The complaint states that Abraham is individually liable for copyright infringement by distributing and selling the chips.
In addition, the complaint named Summit Laser and Graphic Technologies, distributors of ISV chips, stating that Static Control has been and continues to be damaged by the sale of the chips.
The suit is filed only under U.S. copyright law and makes no mention of the DMCA. It seeks to enjoin ISV, Abraham, Summit and Graphic Technologies from "manufacturing, marketing and selling any ISV chips, including, but not limited to, the Lexmark T520/522 and T620/622 printers, that infringe Static Control’s copyrighted Code." Static also is seeking damages in excess of $75,000 – a standard sum that simply allows the case to be heard in federal court.
ISV had 30 days from the date of service to answer the complaint. At press time, there had been no response.
