Canadian Imaging Products Remanufacturers Association Supports Battle Against Lexmark Use of Smart Chips that Restrict Trade Practices

CIPRA Supports Static Control Components' Antitrust Lawsuit against Lexmark; Imaging Products Remanufacturing Reduces Cost of Printer Ownership, Employs Over 2,000 People and Recycles Over 100,000 Printer Cartridges per Month in Canada

Winnipeg, Manitoba, March 3, 2003 – The Canadian Imaging Products Remanufacturers Association (CIPRA) fully supports the Static Control Components antitrust lawsuit against Lexmark filed on February 28, 2003 in Federal Court in North Carolina. The antitrust suit alleges that Lexmark violated state and federal laws, including the Sherman Act (the US federal antitrust legislation), the Lanham Act (which contains deceptive advertising provisions) and North Carolina's Unfair and Deceptive Trade Practice statute by erecting technological barriers that prevent imaging product remanufactures from selling recycled toner cartridges to printer users.

"If not thwarted, these practices will severely damage the imaging products remanufacturing industry in North America," says Tim Lomax, Chair of the CIPRA Trade Restriction Committee. "CIPRA fully supports Static Control's antitrust suit against Lexmark and Static Control's efforts to help remanufacturers offer customers a cost-effective and environmentally friendly alternative to original toner cartridges."

"A positive ruling would also set important precedents for other aftermarket industries, such as the automotive industry," Lomax adds.

Last April, CIPRA made a $5,000 donation to support the Arizona Cartridge Remanufacturers Association (ACRA) lawsuit fighting restrictive trade practices introduced by Lexmark. The ACRA case, in discovery with a trial date in October 2003, alleges that Lexmark engaged in deceptive advertising, unfair competition, and specifically targets the Prebate program, which gives customers advanced discounts on the purchase of their next printer toner cartridge.

Remanufacturing cartridges reduces capital costs and lowers the total cost of printer ownership and the per page cost of printing by approximately 30 to 40% per printer when compared to the exclusive use of original cartridges, according to CIPRA. The typical imaging products remanufacturing customer has 20 to 40 printers, which means substantial savings for companies that use remanufacturers.

"In addition to saving Canadian businesses money, imaging product remanufacturing companies employ over 2,000 people in Canada and recycle over 100,000 cartridges per month. This saves over 300,000 liters of oil and keeps over 500,000 pounds of waste from going into landfill sites each month," says Lomax.

The growth of the Canadian imaging products remanufacturing industry has paralleled the dynamic growth of the computer industry in Canada. However, the industry faces obstacles to continued growth from Original Equipment Manufacturers (OEMs) who have engaged in a variety of Restrictive Trade Practices. These practices lock businesses and consumers into buying replacement cartridges from the OEM, rather than from local remanufacturers.

CIPRA educates government decision-makers about practices that limit consumer choice and make it difficult for remanufacturers to fulfill business demands for remanufactured imaging products. CIPRA also promotes remanufacturing as an industry that produces high-quality products that save businesses money. To that end, CIPRA has established a Code of Ethics designed to encourage professionalism and sound business practice in the remanufacturing industry.

ABOUT CIPRA
The Canadian Imaging Products Remanufacturers Association (CIPRA) is a not-for-profit, member-funded and supported association founded in 1998 to lobby against OEM trade restrictive practices and to promote the economic and environmental benefits of remanufactured imaging products. Headquartered in Winnipeg, Manitoba, CIPRA has 61 members across Canada. CIPRA is a member of the International Imaging Technology Council (ITC), which represents the interests of the world's office imaging industry.

FOR MORE INFORMATION:

MEDIA CONTACT:
Tim Lomax
A&M Computer Supplies
Tel: 905 475-6177
Email: tim@aandm.ca

CIPRA NATIONAL CONTACT:
Shelley Morris
CIPRA Executive Director
Phone: (204) 795-2000
Fax: (204) 925-8000
Email: smmorris@mts.net