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Lexington, Kentucky — A U.S. federal judge has issued a preliminary injunction against a North Carolina company, prohibiting it from making or selling computer chips that match remanufactured toner cartridges to Lexmark printers.

The order Thursday against Static Control Components Inc. of Sanford, N.C., came from a lawsuit filed in December in which Lexmark International Inc. claimed the chips infringed on Lexmark's copyrighted software.

Lexmark, based in Lexington, Ky., asked U.S. District Judge Karl Forester for the preliminary injunction to stop the North Carolina company from manufacturing chips that adapt less expensive ink cartridges to Lexmark printers.

Lexmark claims that Static Control's "Smartek" chips violate the Digital Millennium Copyright Act, passed by Congress in 1998 to protect music from being copied and illegally distributed over the Internet. If Lexmark wins the case, legal experts say, it could pave the way for manufacturers to build such chips and product-validation systems into everything from ballpoint pens to car parts. This would mean consumer could only buy replacement parts from the original manufacturer, locking third-party suppliers out of the market.

Vincent Cole, Lexmark's general counsel, said Thursday the company was pleased.

"We believe that our printing solutions and services make us unique, and we intend to vigorously protect the intellectual property that helps to set us apart from our competition," he said in the statement.

Static Control said in a statement the company was studying the ruling and expected to be able to offer a replacement chip that complies with the order.

"We are disappointed in his order, and believe that after he or a jury has heard a full exposition of the facts that we will prevail," the company's statement said.

The chip is one of thousands of components Static Control makes and supplies to companies in the laser printer cartridge industry.

With printers being relatively inexpensive, manufacturers make most of their profits selling replacement ink or toner cartridges.

Lexmark tried to stop other companies from supplying cartridges for its printers by installing tiny computer chips in each one. Those chips cause the printers to malfunction if the replacement cartridge comes from anyone other than the original manufacturer.

In response, Static Control designed the "Smartek" chip that enables replacement cartridges to work in the Lexmark printers. Lexmark says the encryption code in its chip that "unlocks" the printer when a Lexmark printer cartridge is inserted, is copyrighted intellectual property.

Cap'n Hector wrote:It'll be interesting to see how this plays out.

Darth Garden Gnome wrote:

Cap'n Hector wrote:It'll be interesting to see how this plays out.

Lets hope it doesn't, and it's forgotten in a week. But what are the chances of that happening?

HemlockGrey wrote:You do realize there is an appeals process, right?

Pu-239 wrote:Dammit I want to move to Europe. Maybe they will accept more immigrants due to declining birth rates.

Kelly Antilles wrote:Competition is so fierce in the Printer industry. Most companies are trying to gouge the poor people to make them use everything that has their name on it. Such a pity.

Enlightenment wrote:

Pu-239 wrote:Dammit I want to move to Europe. Maybe they will accept more immigrants due to declining birth rates.

There are places in Europe that are practically begging for skilled immigrants. People with professional skills shouldn't have much of a problem immigrating.

HemlockGrey wrote:You do realize there is an appeals process, right?

Enlightenment wrote:

HemlockGrey wrote:You do realize there is an appeals process, right?

Justice systems the world over are designed to impartially rule in favor of whoever can bring the most money into the courtroom. Static Control will have far less money than Lexmark to spend on lawyers; therefore Lexmark will eventually win.

Enlightenment wrote:

Pu-239 wrote:Dammit I want to move to Europe. Maybe they will accept more immigrants due to declining birth rates.

There are places in Europe that are practically begging for skilled immigrants. People with professional skills shouldn't have much of a problem immigrating.