Supreme Court Rejects Lexmark's Petition
The United States Supreme Court has
rejected Lexmark's petition for certiorari,
upholding Static Control's position
against
the Digital Millennium Copyright Act (DMCA) and copyright issues raised by
Lexmark in connection with Static Control's
sale of Lexmark compatible chips.
The latest ruling marks the fifth straight victory
for North
Carolina-based Static Control
Components Inc. and the end of Lexmark's attempts to use the
DMCA to create a monopoly in aftermarket
supplies. Static Control now offers
the only
Lexmark compatible chips that have been cleared by the courts under
the DMCA or copyright.
In October, the 6th U.S. Circuit
Court of Appeals in Cincinnati, Ohio,
overturned a preliminary injunction banning
the sale of Smartek replacement chips
by
Static Control Components for the Lexmark cartridges based upon Lexmark's
claims under the DMCA and copyright. The 6th
Circuit opinion turned, in part,
on the design
of the Static Control chips.
Lexmark
appealed to the full body of the 6th Circuit to rehear the case,
and that request was denied in February 2005.
"I could not be any happier that
justice is being served," said Ed Swartz,
CEO
of Static Control. "For nearly 900 days we have fought tooth and nail
with this multibillion dollar company. We
vowed at the outset that we would not
back
down or waiver, and we will see this battle to its very end."
On Dec. 30, 2002, Lexmark filed a
lawsuit against SCC. In the suit Lexmark
claimed that SCC's Smartek 520/620 chips
violated the Digital Millennium
Copyright Act
of 1998.
"We have secured two
victories in Ohio in the 6th Circuit, two victories
in Washington, D.C. with the Copyright Office
and Supreme Court and a victory
in North
Carolina's legislature. We are looking forward to going back to
Kentucky with five victories under our belt."
According to SCC General Counsel
William London, the impact of the Supreme
Court's decision is significant.
"This decision should greatly
simplify what is left of the Lexmark
lawsuit.
At the trial Lexmark will be forced to defend their anti-competitive
activities without the distraction of
Lexmark's baseless DMCA claims."
Static Control Components, which employs over 1,300 people in Sanford,
N.C. accounts for over $300 million in annual
sales. The primary market for
Static Control
Components is the laser toner cartridge remanufacturing market.
Static Control supplies over 3,000
replacements parts to over 10,000
remanufacturers all over the
world.
Posted: Mon - June 6, 2005 at 02:32 PM