Recycling Times Magazine
RecyclingTimes The magazine by the industry, for the industry.
Publisher & Managing Director Tony Lee tony@therecycler.com.cn
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David Gibbons david.gibbons@therecycler.com.cn Sabrina Lo sabrina@therecycler.com.cn
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Johanna Breen Cherry Xu translator@therecycler.com.cn Jessica Yin magazine@therecycler.com.cn Sophia Jiang editor@therecycler.com.cn
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Adam Lin design@therecycler.com.cn
Sales Sales Manager
Anna Leung anna@therecycler.com.cn
Account Manager
Kevin Zhu kevin@therecycler.com.cn
Sales Executives
Joy He mktas@therecycler.com.cn Sally He sales@therecycler.com.cn Susi Guo Sales02@therecycler.com.cn
Operations and Marketing Operations Manager Charles Lee charles@therecycler.com.cn
Operations Assistant
William Feng operation@therecycler.com.cn
Marketing Manager
Morrow Miao morrow@therecycler.com.cn
Accounting
Feng Li account@therecycler.com.cn
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T
he 9.0-magnitude earthquake and the tsunami it triggered struck off the northeast coast of Japan's main island of Honshu, causing massive damage and loss of life in the area. The panic was deepened by the radiation at Fukushima Nuclear Power Plant that followed. The volcanic eruptions in the southwest of Japan made things more complicated and worse. We hope Japan will make a speedy recovery this tough period.. Since Japan is the world centre and research base for raw materials and equipment for office supplies, several printer industries launched their major processing lines in Japan including Epson, Canon, Xerox, and Kyocera. Some OEMs in the area hit were damaged in this disaster. The production operations at Canon Group, Epson, Panasonic, Ricoh, Kyocera, Sharp, Toshiba and Fujitsu were all affected. Most printer manufacturers design their machinery factories abroad, but the research base still remained in Japan. Undoubtedly, this event will affect the releases of new products by these companies. However, it is a good chance for Samsung to accelerate researching and releasing new products. Meanwhile, costs and exchange rates are two unavoidable problems for Chinese manufacturers. Firstly, the price of raw materials has been raised. Secondly, the government raised the minimum wage for workers again on March 1, 2011. This is the second raise in two years. The minimum wage for workers in Guangdong has increased by 18.6%. The exchange rate for RMB has been raised continuously. Compared to 2007, the RMB has risen by 25.6%. It is forecast that the exchange rate will rise 5% in 2011. If Chinese companies are not willing to keep up with the world, these conditions are still far from satisfactory. In front of increasingly high cost of material and labor, Managed Print Solutions (MPS) is bound to grow, especially if organizations are trying to lower costs. I believe the next three to five years are of significant importance to the MPS market in China.
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April 2011 | www.recyclingtimes.com.cn
Tony Lee Publisher & Managing Director
All rights reserved. © 2011 by Recycling Times Media Corporation. The contents are not be to copied or republished without official written consent. The editorial content does not represent official positions of Recycling Times Media Corporation.
Recycling Times Magazine
contents contents
Wuhan Pointrole partners with Marubeni to make color toner Wuhan Pointrole cooperates with Marubeni Corporation with the intention of forming the largest process line of color toner and plans to produce 800 tons of color toner for laser and digital printers, with 40% of this toner expected to be exported to the overseas market. It is expected to reach an annual revenue of 20 million Yuan (about $3m US dollars) when the project is completed.
www.recyclingtimes.com.cn
Just a Minute with David Gibbons
4
Kodak enters MPS arena? This partnership brings Kodak another step closer to becoming another office equipment supplier. Has anyone else noticed that Kodak now offers highend production as well as office scanners that can be equipped with document scanning software? At some point, doesn’t it make sense for them to jump back into the copier/MFP world?
Are there too many trade shows?
Industry Updates
6
Zhuhai Seine dismisses two senior executives
7
Static sues seven over chip license agreement
Wuhan Pointrole partners with Marubeni to make color toner
Toner queen builds her color castle ——Interviewing Mary Ouyang, GM of Mito
Mary Ouyang has built up her own color castle in remanufacturing color toner cartridges. So much so that she is also called “toner queen” by her counterparts. Recycling Times interviewed with Mary Ouyang, general manager of Mito Color Imaging Co., Ltd. to find out how this legend has come about.
Turbon’s complaints against HP rejected
8
IDC : Australian printer market moving from recovery to sustainability India printer copier and MFP market increased 10% in 4Q of 2010
10
MFPs and laser single function to dominate the growth in the Philippines Jet Rise Technology receives STMC certification
11
ECi acquires FMAudit for print services
Katun offers color toner Konica Minolta Bizhub C203/C253
20 26 29
Canon launches image RUNNER and imageClass MFPs
15
Epson to build new plants in Philippines and Indonesia
HP opens new training center in Kenya
Japan quake and tsunami damage could hit Canon India revenue by 5%
16
Dell inks printer cooperates with Midwich
32
Xerox partners with Office Depot for MPS
Toner queen builds her color castle —Interviewing Mary Ouyang, GM of Mito
Compensation and benefits review (part one)
Market Data
37
IDC: worldwide hardcopy peripherals market shipments grow 7% year over year in 4Q10
Legal Issues
40 42
Epson's trick in the Asian market China’s new patent law – influence and interpretation (part two)
Tech Zone
Sharp to acquire IOT to expand copier business
17
Kodak enters MPS arena?
Sales & Management
OEM News
14
MPS banquet: want to join?
Profiles
New inks from OCP Guangzhou Duplicator releases new OPC drum
Konica Minolta MFPs certified by Hong Kong Green Label Scheme
Features
New from Static Control
FG releases wiper blade for HP CP2025/CM2320
13
18
Print-Rite certified first pilot remanufacturing enterprise in China
Product Release
12
OEM News
44
Remanufacturing the Canon imageCLASS D1120 type 120 2055 toner cartridge www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
Just a Minute with David Gibbons
Are there too many trade shows? Research suggests that most attendees and exhibitors agree: there are too many trade shows in the world. Almost three quarters of people polled at a variety of industry trade fairs around the world say there are too many, with only one person in 5 saying there is about the right amount. Is this also true for our industry—the remanufacturing and after market printer consumables industry? I remember the time when there were only two or three shows for our industry: The Recharger World Expo in Las Vegas and the R&R show in Europe which attracted thousands and thousands of visitors. These days, two of the largest shows are both run in China. China collectively manufactures and remanufactures more toner and ink cartridges than anywhere else on the planet. And the quality issues faced a decade ago do not need to exist any more either (although you really do need to check your sources). Trade shows are a vital part of any industry, especially the remanufacturing industry. They can be a great opportunity to meet thousands of decision makers over a period of just a few days. New products, new machinery, new techniques, and new materials are showcased at trade shows each year.
But a whole lot more happens at a trade show. Networking! I remember—as a remanufacturer myself— the trade shows were the best place to meet other remanufacturers and to build life long relationships. Relationships which positively changed the face of my business forever. Smarter ideas, stronger strategies, healthier finance options, sharper business practices are now more business critical than ever before. Some of the best information I have ever gleaned was not sold from a booth. Rather it was through the relationships I developed from people on the booths as well as in the isles walking the floors beside me. So are there too many shows? Only you can really answer that question. Are you using the events smartly? If you put in the effort you will find solutions for your business that will make a difference: information you would NOT want your competitors to know!
David Gibbons is Director of Recycling Times. He has been a school principal, marketer, businessman, remanufacturer and Executive Director of the Australasian Cartridge Remanufacturers Association until 2005. He is currently the director of communication of a large South Pacific organization.
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Recycling Times Magazine
Industry Updates
Zhuhai Seine dismisses two senior executives
Z
huhai Seine Technology Co., Ltd. announced the dismissal of its vice president, Benny Yue, effective immediately on March 7. The next day, the company announced the dismissal of its sales director, Brandon Luo. Zhuhai Siene Technology is one of China’s largest manufacturers of non-OEM laser products and the producer one of China’s first own-branded laser printers – Pantum. The company was first established in April 2006, and later got strategic investment from Legend Capital in 2007. After years of research and development, Zhuhai Seine launched its first
four models of Pantum printers in December 2010. The company aims to launch MFPs, highspeed printers and color laser printers in the next three years. Its annual turnover is expected to reach 10 billion RMB in five years.
Zhuhai Seine has been contacted for comments. However, Recycling Times had received no response at the time of going to press. For more information about the company, please go to www.seinetec.com.
Wuhan Pointrole partners with Marubeni to make color toner
W
uhan Pointrole Information Te c h n o l o g y C o. L t d h a s announced its cooperation with Marubeni Corporation with the intention of forming the largest process line of color toner and plans to produce 800 tons of color toner for laser and digital printers, with 40% of this toner expected to be exported to the overseas market. The cooperation between the two companies is expected to reach an annual revenue of 20 million Yuan (about $3m US dollars) when the project is completed.
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It is the first time that Marubeni, a 153 year old corporation, has stepped into color toner manufacturing. The president of Marubeni said that the decision was made because Marubeni likes Pointrole’s self-researched Intellectual Property. There are various kinds of printers and each has its own dedicated toner, therefore, producing different toners using only one process line will affect the quality of different kinds of toners. Pointrole has dealt with problems with compatibility of color toner successfully.
Wuhan Pointrole also adopts advanced technology to reduce its waste by1.5 tons per 100 tons of raw material. According to Wuhan Pointrole, it successfully reduces the waste by ten times of the worldwide standard. This is both environmentally-friendly and efficient. The two companies are optimistic about the future and their vision is to become one of the leaders in toner manufacturing in the next decade. It is reported that the world toner market increases gradually at a rate of between 5% to 7% per year and 22% in China. The color toner market increases by 50% per year in China and most of the toner in China’s market is imported from overseas markets. Marubeni also said they were willing to make contribution to the development of Hanyang and the construction of office automation, not only building up manufacturing bases and logistics centers but also the overall development plan for the industry as a whole. Last year, Marubeni was a trader of over 10 billion US dollars for China. It officially established a subsidy company in Wuhan, China last year.
Recycling Times Magazine
Industry Updates
Static sues seven over chip license agreement
S
tatic Control Components took legal action on March 8, 2011 against seven companies, and this is only one of a long line of lawsuits concentrating on some of hotlycontested patents relating to universal type chips, several sources reported. Static declares that the seven companies broke a cross-licensing agreement during the American Imaging LLC et al vs. Roman et al case, resulting in several inter-related issues that may have serious implications. Static Control CEO Steve Weedon also expressed that they had a dispute over the scope of the cross license agreement when he was contacted for comment. The seven companies are: • Industrial Engineering & Development, Inc.(IED) • Innovative Cartridge Technologies, Inc.(ICT) • Cartridge Corporation of America, Inc.(CCA) • Patent No. 7,551,859 Holding, LLC • American Imaging Cartridge, LLC • Universal Imaging Holdings, LLC • Chips Incorporated. Static alleges that the defendants infringed a patent Cross License Agreement executed in November 2007. Static said it went into a Cross License Agreement with IED, ICT and CCA which
Static can use certain patents owned by ICT, including 7,286,774 and 7,187,874 patents. Any continuation, in-whole or in-part, of these three patents for universal chips are included in the license. Static also claimed in the complaint that all the defendants were owned and/or controlled by a Mr. Steven Miller under the name of a company, Platinum Manufacturing International, Inc. Miller is said to be one of the inventors of Patent No. 7,551,859. It is expressly states that this patent is a continuation-in-part of both the 7,286,774 and 7,187,874 patents. Static alleges that US No. 7,551,859 Patent was assigned to AIC without prior notice to, or consent from Static. This violates the Cross License Agreement, Static claims. Static is seeking a judicial
declaration and order that the No. 7,551,859 Patent is invalid. Last December, a patent infringement case was filed at the Florida Middle District Court. The plaintiffs include American Imaging Cartridge, LLC, Innovative Cartridge Technology, Inc. and Platinum Manufacturing International, Inc. The products in suit are imaging devices for use in Lexmark T630, T640 and T420 products and chips. The plaintiffs also claimed that some other companies might have infringed their patents, but these companies are not named specifically in the lawsuit. The plaintiffs named 28 defendants, including Ronald Roman, ACM Technologies, Inc., Densigraphix, Inc. and others, some of which are Static’s customers, according to Static. Static claims that American Imaging, ICT and Platinum Manufacturing International, Inc. offered to dismiss their claims if the defendants of the December case would buy chips directly from Miller entities instead of Static. This strategy is an attempt to go beyond the Cross License Agreement and will cause “irreparable” harm to Static since it destroys customer relationships between Static and its customers, Static said.
Turbon’s complaints against HP rejected
A
New York Federal Court Judge has ruled that HP was not involved in unfair competition, Law360 reports. Judge Victor Marrero, the US District Court for the Southern District of New York, rejected Turbon International Inc.'s charges of unfair competition, false advertising and theft of trade secrets made against HP. HP can dismiss in part the claims from Turbon because Turbon cannot provide adequate proof. Turbon claimed that HP had expanded its
recycling programs after the partnership between the two companies was dissolved but it failed to prove that HP stole trade secrets, according to Judge Victor Marrero. What’s more, Turbon had failed to show that the advertisements made by HP were literally false, misleading or confusing for consumers. However, Turbon retains some claims in this case, including one for interference with prospective economic advantage, as well as additional fraudulent inducement and relief
claims, which remain unchallenged by the OEM. This case was first reported in June 2010 when it started. At that time Turbon centered its complaint on contracts it undertook with HP from December 2008, for which Turbon said it produced replacement cartridges for HP. Nevertheless, the manufacturer’s contract was canceled in January 2010, and Turbon claimed that HP was using information it gained against the company, after Turbon "methodically disclosed every intricate detail of its business.” www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
Industry Updates
IDC : Australian printer market moving from recovery to sustainability
T
he Australian laser printer market underwent disappointing retail sales during the recent Christmas period, with the majority of sales coming from a late festive season push, according to the results of IDC's Australia Monthly Printer and Inkjet MFP Tracker, Q42010. In the recovery year of 2010, the laser printer and
inkjet multifunction devices markets increased 45% and 11% respectively compared to 2009. However, this tendency slowed down during the transition from Q3 to Q4 which kept a flat growth of less than 1%. During this period, there was an influx of lowend laser printers (mono and color printers at the speed of 1–20ppm and 1–10ppm respectively,
based on IDC speed segmentation) in the market, portraying a 50% unit growth as compared to Q3 results in this segment. Yee-Kuan Lau, market analyst for IDC Australia, claims that after taking the lead in the laser printer market for three consecutive quarters in 2010, Brother lost the leadership position to HP in the final quarter, making Q4 the best quarter for HP. HP has been very active in the consumer space towards Q4 with aggressive channel activities. Excessive inventory from a strong Q3 resulted in national retailers being more wary in their inventory management when stocking up for Christmas, according to Lau. It appears that 2011 will be the year of sustainability, and vendors will focus on activities to maintain growth. Samsung and Brother will continue to expand their portfolio and have been introducing attractive promotions targeted at these segments in the recent years. Greater competition and increased vendor focus on the SMB space will change a better variety of affordable printers for customers.
India printer copier and MFP market increased 10% in 4Q of 2010
T
he combined serial inkjet and page printer, copier and multifunction product (MFP) market in India totaled 6,81,142 units in the fourth quarter of 2010, increasing 10% compared with quarter of 2009, according to Gartner, Inc. Amrita Choudhury, a research analyst at Gartner, says that due to the growth in IT sector and overall consumer confidence, there has been a spur in IT spending including the small and midsize business (SMB) and government sectors. Therefore, there is a good growth in printer sales. HP, Canon, Epson and Samsung continued to be the top four vendors accounting for 94% of the total India printer market in the fourth quarter of 2010 (see Table 1). HP remained the leader in the India printer, copier and MFP market with a market share of 55.7% in the fourth quarter of 2010, while Canon followed with
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24.6% market share.” In the A3 flatbed copier MFP segment, Toshiba lead the market with a 31% market share, followed by Canon with 21%. Toshiba grew 136% with continuous focus on the government sector whereas; Canon grew 23% in the fourth quarter of 2010 compared to the fourth quarter 2009. The page printer market grew by only 2% in
the fourth quarter 2010. HP which leads the page printer market with a 46% market share recorded only 1% growth in the fourth quarter 2010, while Canon, with 40% market share, grew by 20%. Samsung recorded a decline of 28% but held 10% market share in the Indian page printer market. For more information please visit the Gartner’s website at www.gartner.com.
Vendor
4Q 2010 4Q 2010 Market Shipments Share
4Q2009 4Q 2009 Market Shipments Share (%)
4Q10 -4Q09 Growth (%)
HP
379.2
55.70%
356.4
57.70%
6.4
Canon
167.9
24.60%
146.2
23.60%
14.8
Epson
47.2
6.90%
29
4.70%
62.8
Samsung 44.1
6.50%
49.2
7.90%
-10.4
Others
42.7
6.30%
39.2
6.30%
8.9
Total
681.1
100
620.1
100
9.8
Recycling Times Magazine
Industry Updates
MFPs and laser single function to dominate the growth in the Philippines
I
n the Philippines, the local market of hardcopy peripherals (HCP) consisting of printers, digital copiers and multifunction devices is predicted to be driven in 2011 by a wider end user preference for inkjet and laser MFPs, and laser single function peripherals (SFPs). International Data Corporation (IDC) notes that there is an increasing partiality of the market, especially among home users for the narrowing price difference between inkjet MFPs and SFPs. Laser machines, no matter whether they are SFP or MFP, are also steadily becoming popular due to the entry of affordable machines coupled by a beefed up vendor sales force. Pamela Sumanga, Associate Market Analyst for
Hardcopy Peripherals research at IDC Philippines, claims that the Philippine HCP market is forecasted to reach 845,300 units by end of 2011. Compared to 858,500 in 2010, this figure represents a 15% decrease, but there is no need for industry stakeholders to interpret this in a bad light. She also adds that Inkjet SFPs have long taken more than half of the total HCP pie, especially in 2009 during the economic crisis. As a result, the end users were preferring cheaper machines. In the long run, demand for inkjet SFP machines is seen to wane as consumers become more open to the adoption of inkjet MFPs, either for their first purchase or to replace existing equipment. Because offices and government agencies are
becoming more aware of the long-term cost benefits of laser versus inkjet, laser machines are also steadily gaining traction in the market. Yet it will take time for the home users, the biggest consumers of inkjet SFPs, to choose laser because of the price difference. Another reason for slow growth is the retirement rate of HCPs. It is known that Filipinos often use their printer until it cannot work anymore. Thus the end user of inkjet SFPs in 2010 may not replace it with inkjet MFPs or laser machines in 2011. Consequently, a projected contraction of the HCP market this year appears, Pamela explains. For further information, please contact Sasithorn Sae-iao at sasithorn@idc.com.
Jet Rise Technology receives STMC certification
H
ong Kong’s Jet Rise Technology Ltd, a toner cartridge manufacturer, is honored to announce that it has recently completed the rigorous training program and received STMC certification from the International Imaging Technology Council (I-ITC). “Securing this prestigious certificate is a great honor and recognition for Jet Rise Technology Limited (JRT). We have always dedicated ourselves on offering products with high quality and fast time to market. Being STMC certified, allows us to exceed the industry’s standard and continue our mission to offer niche and high quality products to our customers with a competitive edge. This
reinforces our commitment to quality and customer satisfaction” said William Ng, General Manager of Jet Rise Technology Ltd. STMC stands for the Standardized Test Methods Committee. This global committee formed to find and promote standardized test methods for the printer cartridge industry. The test methods are used to evaluate toner printer cartridge performance. Standardized test methods make it possible to evaluate a cartridge anywhere and come up with the same test results no matter who tests it and measures it. Jet Rise Technology Ltd. believes itself to be environmental friendly, strong in the
remanufacturing niche and premium toner cartridges especially in color. It offers full solutions for outsourcing in neutral or private labeling and packaging to the aftermarket industry. For more information,please go to www.jetrisetech. com or contact William Ng, General Manager at Jet Rise or email to william@jetrisetech.com.
Lodsys Sues Brother, Canon, HP, Samsung, and Others (Issue 12) Town Sky goes bankrupt (Issue 12), Town Sky may go bankruptcy (online version) (Issue 12) Zhuhai Gree and Green Project may settle
with Epson (Issue 12) Ninestar settles federal case with Lexmark (Issue 11) Print-Rite and L exmark settle patentinfringement dispute before the ITC (Issue 11)
Acknowledgement
R
e c y c l i n g Ti m e s w o u l d l i k e to acknowledge Actionable Intelligence for providing the
following content: Lexmark settles patent suit with 10 companies (Issue 12)
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Recycling Times Magazine
Industry Updates
Print-Rite certified first pilot remanufacturing enterprise in China
P
rint-Rite Unicorn Image Products Co., Ltd. of Zhuhai, a wholly owned subsidiary company of Print-Rite Holdings Ltd. (Print-Rite), has been certified as the first pilot remanufacturing enterprise in the office information equipment segment by the Ministry of Industry and Information Technology (MIIT) of the People's Republic of China. Print-Rite is among some of the
world's leading multinational companies who gained this recognition. Arnald Ho, Chairman and founder of PrintRite, noted, "Once again, this certification acknowledges Print-Rite as the pioneer and leader of remanufacturing industry. It's our great honor to have the certification from the ministry and it is a clear testament of Print-Rite's continuous dedication and
contribution to the industry." According to the direction of MIIT, the energetically developing remanufacturing industr y is a key way to actualize the recycling industr y, an efficient use of energy, a reduction of emissions and sustainable development. The ministr y launched this certification program of pilot remanufacturing enterprises to promote and encourage the development of remanufacturing industries actively by certifying qualified companies from different industr y segments across the nation. The core objective is to build the society where energy-saving and environmental conservation is highly valued. There were totally 13 remanufacturers in different segments have been certified as pilot remanufacturing enterprises in the first batch. Print-Rite Unicorn Image Products Co., Ltd. is the first in the office information equipment segment to be certified as the pilot remanufacturing enterprise. For more information about Print-Rite products and company information, please visit www.print-rite.com.
ECi acquires FMAudit for print services
T
he MPS player eCommerce Industries, Inc. (ECi) announced today that it has acquired FMAudit, LLC, based in Jefferson City, MO. FMAudit’s suite of print assessment, remote metering, supply and service data applications provide real-time information that empowers organizations to automate labor-intensive business processes, according to Fort Worth, TX. Trevor Gruenewald, COO of ECi states that ECi is delighted to combine FMAudit’s powerful solutions and talented team in the ECi portfolio of companies. Being offered a “onestop shop” service, customers using FMAudit
have experienced tremendous results by implementing the ability to reduce overheads, automate services and increase sales in their dealership. It is clear that the unique and costeffective solution is imperative for managed print services success, according Trevor Gruenewald, COO of ECi. Kevin Tetu, President and Founder of FMAudit, declares that it is a great opportunity for FMAudit to exceed their goals for aggressive growth. This transaction will enable FMAudit to significantly enhance customer offerings by helping FMAudit deliver high-value solutions to the market faster and with more seamless
integration, and moreover the transition will be smooth and prove to benefit the customers, employees and the dealer community. T h e a c q u i s i t i o n o f F M Au d i t f u r t h e r demonstrates the commitment to serve the market. The combination of FMAudit and ECi’s suite of business system solutions puts ECi in a strong position to extend the value ECi provide customers and it provides customers with bestin-class managed print services solutions to help them grow, Gruenewald further adds. For more infor mation about the two companies please visit www.fmaudit.com or www.ecisolutions.com. www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
Product Release
New from Static Control
S
tatic Control has released toners and other critical components for remanufacturers who want to work on the highly profitable cartridges used in the HP LaserJet CP5525/CP5225 and Canon LBP-9600/9500/9100 colour printers. Toners from Static Control for the high-yield and low-yield cartridge applications have been engineered to be electrically matched with both Static Control replacement components as well as with good, re-useable OEM components, to achieve • Contact Static consistent print quality with Tel: +44 (0)118 923 8800. every remanufactured colour Email: info@scceurope.co.uk cartridge. Products
Product Codes
Toner (LY):
HP5225-160B-COS HP5225-160B-MOS HP5225-160B-YOS HP5225-200B-KOS
Toner (HY):
HP5525-240B-COS HP5525-240B-MOS HP5525-240B-YOS HP5525-250B-KOS
Wiper Blade:
DRHP5525BLADE
OPC Drum:
DRHP5525, (-5), (-50)
Universal Chip:
U26-2CHIP, U27CHIP
Doctor Blade Spacer
HP5525DBSPACER
Heat Entry Jig
HP5525HEJIG
Rigid Insertable Seal
HP5525RISEAL
Shipping Protector
HP5525SHPROT
Katun offers color toner Konica Minolta Bizhub C203/C253
K
atun Corporation introduced Katun Performance color toner for use in the Konica Minolta Bizhub C203/C253series digital copier/printers. Katun believes that customers who purchase this toner, the latest in a series of well-received color toners for use in Konica Minolta applications, will be impressed by the OEM-equivalent print performance, image density, print quality, yield and color reproduction plus significant cost savings versus the OEM toner. “This color toner set meets K atun Performance standards, so end users will experience true, vivid color reproduction throughout the life of the toner cartridge. The exceptional color quality meets performance requirements in graphics applications, and therefore easily meets or exceeds the expectations of end users in business color environments, where most of these machines are placed,” says Robert Moore, vice president of product development. “The proven performance of our color toners for use in Konica Minolta applications confirms our dedication to quality.” This toner has passed Katun’s 360 certification process during development and testing. In addition, to ensure ongoing product performance, production lot samples are tested on a continuing basis to guarantee product consistency. These color toners have been tested and approved for forward and reverse compatibility with OEM toner, meaning Katun toner • Contact Katun can be installed before or Tel: 800-328-2965 after OEM toner, with no Website: www.katun.com degradation in copy quality.
FG releases wiper blade for HP CP2025/CM2320
F
uture Graphics (FG) has announced the release of a qualified wiper blade as part of a comprehensive system solution for HP CP2025/CM2320 remanufactured color cartridges. The wiper blade has been rigorously tested and qualified in environmental extremes with other FG components, including K aleidochrome TRUE CPT toner and a Kaleidochrome OPC. The results have shown
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April 2011 | www.recyclingtimes.com.cn
consistently outstanding, OEM-like color quality. Testing has also revealed that the blade is downward compatible with the CP1518 series cartridges, which includes the CP1215/ CP1515/CP1518/CP2025/CM1312 and CM2320. The FG comprehensive system solution for the HPCP2025/CM2320 includes Kaleidochrome TRUE CPT toner, Kaleidochrome OPCs, qualified
PCRs, compatible replacement chips, retaining blades, doctor blade alignment fixtures and a doctor blade cleaning fixture. The wiper blade (item #: HP2025WBLADEFG) is in stock and ships from convenient FG locations around the world.
• Contact FG E-mail: enquiry@fgimaging.com.cn Website: www.fgimaging.com.
Recycling Times Magazine
Product Release
New inks from OCP
O
CP has released a new set of inks for HP’s No.301 and No.61 cartridges. As well as the already well known BKP 89 and BKP 249 black pigment inks, a set of three new color dye-based inks has been developed to guarantee OEM like printing results. The HP No.301 / No.61 cartridge series is used in HP Deskjet 1000, 1050, 2000, 2050, 3000 and 3050 series printer models. The properties of the corresponding printer models are: • printing on A4 media size • resolution up to 4800 x 4800 dpi • borderless printing possible Printer
Deskjet 1000 series Deskjet 1050 series Deskjet 2000 series Deskjet 2050 series Deskjet 3000 series Deskjet 3050 series
• hi-speed USB 2.0 interface • maximum black printed pages per minute: 20 • maximum color printed pages per minute: 16 A complete list of suitable inks for HP No.301 and No.61 cartridges is shown below: As already known from the almost structurally identical HP 300 and HP 300XL cartridges the new 301/301XL cartridges are also equipped with a serial number which is recognized by the printer. This leads to a low ink level being displayed by the printer when inserting a cartridge again after being refilled, according to OCP. For the gross weights and empty weights as well as the refill volumes please find refer to the table below:
OEM cartridge
Color / Type
OCP Ink(s)
CH561 (No.61,301)
Black Pigment
BKP 89 BKP 249
Cyan Dye
C 300
Magenta Dye
M 300
CH562 (No.61,301) CH563 (No.61XL,301XL) CH564 (No.61XL,301XL)
Yellow Dye
Y 300
Black Pigment
BKP 89 BKP 249
Cyan Dye
C 300
Magenta Dye
M 300
Yellow Dye
Y 300
▲ Figure 1 Suitable inks for HP No.301 and No.61 cartridges
OEM cartridge
Color
Gross weight
Empty weight
Refill volume (per color)
CH561 (No.61,301)
Black
30g
25g
5g
CH562 (No.61,301)
Cyan/Magenta/ Yellow
35g
29g
2g
CH563 (No.61XL,301XL)
Black
38g
24g
14g
CH564 (No.61XL,301XL)
Cyan/Magenta/ Yellow
42g
29g
4,5g
▲ Figure 3 OCP inks for HP CH561 cartridges
OCP also announced Brother Innobella inks for LC1100 cartridges the LC-1240/1280XL which contain guaranteed for photo printouts accurate in every detail, brilliant colors and an ideal printing quality. The LC-1240/1280XL cartridges are developed for the new Brother MFC series multifunction printers. The LC-1280XL cartridges are competing with the HP Officejet series which uses the HP No. 940 cartridges. The main features of the LC-1240/LC1280XL and the LC-1240 starter cartridges are: • LC-1240 Starter / LC-1240 / LC-1280XL BK – 390 pages/600 pages/2,400 pages (5%coverage) • LC-1240 Starter / LC-1240 / LC-1280XL C – 390 pages/600 pages/1,200 pages (5%coverage) • LC-1240 Starter / LC-1240 / LC-1280XL Y – 390 pages/600 pages/1,200 pages (5%coverage) • LC-1240 Starter / LC-1240 / LC-1280XL M – 390 pages/600 pages/1,200 pages (5%coverage) For more information, please contact OCP.
• Contact OCP Tel: +49-2324-92070 Email: sales@ocp.de Website: www.ocp.de
▲ Figure 2 Refill ink volume of different cartridges
Guangzhou Duplicator releases new OPC drum
G
uangzhou Duplicator Drum Factory released a new OPC Drum on March 1, 2011, which offers comprehensive system solution for Samsung ML1666/SCX3201/ SCX3206 series printers. This new OPC Drum has been tested by many customers and the testing shows the features of high
quality of compatibility, high quality of black copy, great gray scale, and without repetitive images. Samsung SCX-3201 is said to be designed to deliver productivity with print, copy and scan functions. Users can use the one-touch eco print button to save paper while the default toner mode makes saving toner easier.
For more infor mation, please contact Guangzhou Duplicator.
• Contact Guangzhou Duplicator Tel: +86 20 81509283 Email: gz@gzohcf.com Website: www.gzphcf.com www.recyclingtimes.com.cn | April 2011
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OEM News
Canon launches image RUNNER and imageClass MFPs
C
anon Australia announced the launched of its latest image Runner Advance multifunction printers (MFP) on March 15, 2011. The A3 range expands the image Runner Advance color portfolio, spanning entry level through to light production capability. The introduction of this product is part of Canon's aggressive growth strategy to guarantee it becomes a leader in the print and document management market. The latest imageRunner Advance C2030 and C2020 series are equipped with the latest color control technology to suit small and medium-sized businesses and workgroups in large office environments and will be are available from February this year. With the imageRunner Advance C2030 and C2020 series equipped with Canon's
Multifunction Embedded Application Platform (MEAP), the new series can be connected directly into the customer's back office systems and integrated with software including uniFLOW and iW360 to provide complete print and document workflow management and security controls. Showcasing high-level document scanning devices and multifunction printers, Canon U.S.A., Inc. also display imageFORMULA and imageCLASS solutions at the 2011 Independent Community B a n ke r s o f A m e r i c a ( I C B A ) N a t i o n a l Convention and Techworld in San Diego, California. The exhibited products include a variety of its imageCL A S S products: imageCL A S S MF5880dn, imageCL A S S MS8350Cdn and imageCL ASS LBP6650dn multifunction printer.
HP opens new training center in Kenya
H
P launched a new state of the art training center in Kenya on March 17, 2011 with the intention of imparting knowledge about HP products and services so that customers and partners can maximize the full potential of their company’s investments in technology. The training center is designed to be a key
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resource center for enlarging the capacity of customers and business partners by developing and providing new training progams and solutions in East Africa. Most customers and local experts who have invested in HP feel the need to train their IT staff to effectively manage their new technologies. HP believes in making an effort to cultivate its customers by providing knowledge about HP products and services, and realized it is necessary for HP to open a training center so that the customers and partners can gain necessary skill and training, according to Ken Mbwaya, managing director, Hewlett Packard (HP) East Africa, who also added that the training helps customers in their journey to become skillful enterprises. The training center will benefit IT specialists by offering virtual classrooms, adopting appropriate traditional learning methods and simulations. After training, the customers will get HP certification
which was recently rebranded HP ExpertONE. The certificate not only provides IT Professionals with an opportunity to acquire and measure skills and knowledge against a recognized IT Industry benchmark, but also attain expertise on IT service management and end user technical training amongst a myriad of other courses. In this way HP believes it is creating new possibilities for technology to have a meaningful impact on people, business, government and society and solve customer problems. HP also announced that it would build and lease a next-generation data center to be located in the Waikato district. The data center is designed to enable organizations to quickly respond to market demands and new revenue opportunities. HP’s next-generation data center in Tuakau will provide IT resources to help organizations simplify applications and improve business processes, while increasing operational efficiency and reliability.
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Epson to build new plants in Philippines and Indonesia
S
eiko Epson Corporation declared its commitment to South Asia market by annoucing two plants construction plan
recently.
New plant in Philippines The plant in Philippines was announced on March 3, 2011, announcing it would construct a new projector and inkjet printer manufacturing plant in the country. It will invest P4.5 billion in the plant, which is aimed at serving the strong export market. The new plant will be constructed adjacent to an existing inkjet printer facility at Epson Precision (Philippines) Inc., in Lipa City. Full-scale production at the new plant is planned to begin in October 2011. By the end of 2012, Epson’s employees at the site will almost double from 3,700 to 6,000, according to Hagata, director of Seiko-Epson, and chief operating officer for the Imaging Products Operations segment. The plant will be supported by the technical expertise of the superb local workforce. This investment has gained support from PEZA (The Philipine Economic Zone Authority) and other government authorities. Both projectors and inkjet printers are core, highpotential markets for Epson. The projector market in particular has been growing due to the increased applications in enterprise and education and expanding demand in emerging economies. Taking advantage of the key high-temperature polysilicon TFT LCD panels, Epson is interested in boosting projector
sales by strengthening its lineup of models for use in educational institutions and offices worldwide. Epson has regarded both inkjet printers and projectors as core businesses in its SE15 Long-Range Corporate Vision. By providing manufacturing capacity, the new plant in the Philippines is of great importance to achieving this vision, which Epson believes will facilitate its return to a path of growth through supplying high-quality products to customers. See table 1 for information about the new plant. New plant in Indonesia Meanwhile, PT Indonesia Epson Industry, a subsidiary of the Japan-based Seiko Epson Group (SEG), aims to double its production from six Name
million to 13 million printers in 2012 by opening its new plant. SEG director Hagata Tadoaki said that the company wanted to boost its production capacity to more than double by 2012 by opening the new facility. This is also set to meet growing demands for inkjet printers for enterprise applications in emerging markets, such as Brazil, Russia, India and China, general manager Emile Pattiwael said. In line with the expanding production capacity, Indonesian plants would also be likely to contribute more than 50% of Epson’s total sales. Currently, Epson’s only Indonesian plant makes up 40% of Epson's global sales, which reach 15 million units.
Epson Precision (Philippines) Inc. Lima Technology Center, Lipa City, Batangas, 4217, Philippines
Address Total investment Business lines
Approx. US$110 million by FY2012 (buildings, production equipment, molds, etc.) Manufacture of projectors, inkjet printers
Manufacturing start
October 2011 (planned)
Area
Approx 38,000 m2
President
Osamu Koshiishi
Established
27-Dec-94
No. of employees Area Reference
Approx. 3,700 Site 173,200 m2, buildings 44,385 m2 (Lipa: Total site 130,000 m2, buildings 36,000 m2) 100% subsidiary of Seiko Epson Corp.
▲ Table 1 Outline of the new plant in Philippines
Japan quake and tsunami damage could hit Canon India revenue by 5%
C
anon has declared that the earthquake and tsunami in Japan has a bad influence on Canon that the revenues from India operation will decrease 5% this year due to glitches in the supply of critical components. The company, which had clocked revenues of Rs1, 257-crore from India in 2010, will "definitely" be affected by the disasters in Japan, according to Kensaku Konishi, the president and chief executive
of Canon. He added that none of Canon's own facilities in Japan has been impacted by the twin disasters but some suppliers who manufacture components have reported damage. There will be no impact in the short-term as the company and channel partners are currently holding stock, however in the long run, it will be more pronounced.
Although it is difficult to say which products in its portfolio will be more impacted, Canon will make effort to minimizing the impact. Canon India also imports from Taiwan and China, and those supplies are continuing normally, adds Konishi. Thousands have died and billions of dollars of damage has been reported due to the earthquake and tsunami which hit Japan on March 11, 2011. www.recyclingtimes.com.cn | April 2011
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Dell inks printer cooperates with Midwich
D
ell and Midwich have come to an agreement that Midwich will expand Dell’s printer business in the UK because resellers from UK reflected that there is a need for Dell to strengthen its distribution network. MicroScope's Reseller Radar blog last month disclosed that Dell was negotiating terms and conditions with the print and AV specialist Midwich (based in Diss, Norfolk, UK) to expand its distribution channel beyond Micro P. Midwich will form an alliance with Micro P in distributing Dell’s range of single and multifunction color laser printers. “The agreement commences on 22 March and we are in the process of adding to our sales and business development team to lead the charge in the SME and public sector reseller markets” Alex Ward, the commercial director at Midwich, said, "And there is dual investment from Dell and Midwich. This is a significant opportunity for resellers and means
that we can support all our customers’ needs with a wide choice of competitive, quality products. We are delighted that Midwich was the preferred reseller’s
choice and we are looking forward to supporting Dell’s channel strategy.” “Dell is always looking for the right partners to enable us to strengthen our offering to resellers and their customers. Midwich is a prominent UK distributor and the company’s decision to offer our printer line-up is a great endorsement of our credentials, “We look forward to bringing our printer technology to more businesses across the UK as a result.” added Dave McNally, head of imaging sales EMEA at Dell. Alex Ward says, “Dell has got a very strong offering, people like the brand”.,However, in the high-end space, particularly the A3 and managed print services segments, there still were some gaps. Dell's UK printer business fell nearly 18% yearon-year in 2010 for a major decline in sales of its allin-one Inkjets, which took its market share to 2%, according to figures from analyst Context.
Sharp to acquire IOT to expand copier business
S
harp Electronics UK has announced that it has acquired IOT (Holdings) plc, which will operate as a subsidiary of Sharp Electronics UK with immediate effect. The acquisition will significantly increase the size of Sharp’s copier business, as well as offering an
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opportunity to increase market share through upgrading current competing MIF to Sharp’s awardwinning multifunction products. Founded in 1964, IOT plc has grown into a highly successful company in its sector, with an excellent reputation for high quality service and a strong capability in managed print services and solutions-led business. The company has developed a nationwide in-house servicing capability which, combined with Sharp’s existing national service operation, will give Sharp greater scope to tender for public-sector contracts. In addition to Sharp’s outstanding range of color and mono hardware, awarded BLI Line of the Year twice in the last four years, the breadth of the company’s portfolio will also allow opportunities for cross-selling of other products, including EPoS systems and digital signage solutions throughout
IOT’s sales network. IOT will continue to trade under its current name, and remain under the current management team, headquartered in Wakefield. Paul Molyneux, Sharp UK Managing Director, commented, “We are very pleased to announce the acquisition of IOT, which signals the beginning of a period of exciting growth for both businesses going forward. IOT’s position as a very stable, profitfocused business with a strong service-based culture is the result of an approach Sharp are keen to learn from and pursue aggressively. We bring the strength of a global brand and an ongoing commitment to product development that will deliver future market opportunities”. Martin McCarney, IOT Chief Executive, said, “I am delighted that IOT will now be part of the internationally recognized and trusted Sharp brand. Clients will benefit from the best of both worlds; IOT’s outstanding service-led expertise supplemented with the resources and backing of a major global manufacturer”.
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Xerox partners with Office Depot for MPS
O
ffice Depot announced a partnership with Xerox Corporation to offer managed print services (MPS) to customers across Europe. Xerox managed print services are currently available to Office Depot customers in Germany, with a European rollout scheduled to take place throughout the remainder of the year.
Office Depot’s new managed print services offering, which leverages Xerox’s expertise in solution design and service delivery, will enable Office Depot to assess, optimize and manage customer printing needs, resulting in lower print, copy and IT support costs, reduced environmental impact and increased office productivity. “The proven leadership of Xerox in the managed print services space provides Office Depot customers with access to outstanding print service capabilities, cross-Europe delivery opportunities, and leasing agreements for both Xerox and non Xerox hardware,” said Mike Elbers, Vice President of Marketing and Merchandising for Office Depot in Europe. “This exclusive partnership is the first European offering of its kind to bring a multi-brand solution in office supplies and print capabilities for our broad customer base.” “Businesses are looking for guaranteed results in cost savings, meeting security measures and achieving sustainability objectives. That’s why many are turning to managed print services, which uncovers hidden savings of all kinds,” said Douraid Zaghouani, Senior Vice President, Xerox Europe, European Channels Group. “The combination of Office Depot’s customer care focus and strong supply chain capabilities and Xerox’s industry leadership and years of expertise in Managed Print Services, will allow companies to focus on what matters most: their real business.”
www.recyclingtimes.com.cn | April 2011
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OEM News
Konica Minolta MFPs certified by Hong Kong Green Label Scheme
K
onica Minolta Business Solutions (HK) Ltd., a sales subsidiar y of Konica Minolta in Hong Kong, announced that it has been certified by Hong Kong Green Label Scheme (HKGLS) for its three multifunctional peripherals. These are the first MFPs in the trade that are certified with the environmental label. The Hong Kong Green L abel Scheme sets out environmental criteria and awards certification and is organized by the Green Council of Hong Kong. The certification requires meeting strict criteria including not only reduction of toxic materials but also giving consideration to the environment throughout multiple stages of the product life cycle, such as the production of raw materials and components, the assembly into finished products, the use of products, transportation, and waste disposal.
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The Konica Minolta color MFPs bizhub C360, bizhub C280, and bizhub C220 are the first MFPs to be certified by HKGLS. All of the three models are designed under the Konica Minolta Group's aggressive initiatives to reduce environmental footprint, such as CO2 emission, through the entire life cycle of the products. Innovative technologies supporting the efforts include: aggressive energysaving design to reduce CO2 emissions; significantly more compact packages for toner bottles to conserve raw materials; Konica Minolta's proprietar y "Simitri toner with Biomass," which involves adopting plant-based biomass material, to reduce the use of
materials derived from petroleum, as well as to reduce energy and material consumption in the manufacturing and use of the toner. Based on these initiatives, the certified bizhub series offers high standards of environmental performance required in a wide scope of businesses and offices.
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MPS banquet: want to join? Managed Print Services (MPS) will definitely have an impact on printing devices and printer supplies. However, leading printer manufacturers show no fear towards MPS; rather they face up to the challenge and promote MPS. This is a market with huge profits and potential. How can the aftermarket printer supplies industry enter MPS and grab a share of MPS? This article shows you what MPS is and how to make profit out of it. 1. How fancy is the banquet? 1) Sizing the MPS market Since there is no straight answer to the method of sizing MPS market, different firms have different approaches towards estimating the scale of MPS market. According to a blog on MPS Connect, the managed print services market continues to experience explosive growth, this is reported in the new “MPS Market Size, Share, and Forecast Report” from Photizo Group (a leading research and consulting firm for the managed print services market) released in October 2010. The study indicates that the market grew from $20bn in 2008, to $24bn in 2009, and is forecasted to become a $68bn market by 2014. The market’s 24% compound annual growth rate (CAGR) continued, despite the 2008 economic crisis and slow recovery in North America and Western Europe. Photizo Group forecasts this rapid, double-digit growth will continue for the next five years at a 22% increase in CAGR (2009-14). Other firms think MPS will not expand so fast. IDC said that market growth was in the high-single-digit range. According data to taken from IDC's Worldwide and U.S. Outsourced Print and Document Services Forecast and Analysis report, worldwide MPS revenue increased by just over 8% in 2009. Xerox also indicated that IDC estimated the worldwide market is worth about $7.8 billon and Xerox commands slightly less than half of the market. This IDC study (released in September 2010) is entitled “Worldwide and U.S. Outsourced Print and Document Services 2010-2014 Forecast and Analysis”, and covers the U.S. and worldwide outsourced imaging/printing services markets, which represent addressable markets of $28.6 billion and $60.6 billion, respectively, for 2009. This market is made up of managed print services, in-house production print, mailroom services, imaging and archival services, and business process outsourcing document services. At an Imaging Channel conference, Analyst Shannon Cross also thought MPS would grow at a smaller rate. She estimated the worldwide MPS market is about $7 billion and would grow at
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around 15% annually. She also said the market could be larger and that MPS could be applied to almost any environment where there are printers. Why don’t these statistics follow each others’ findings? Well, Edward Crowley of Photizo Group says, “This is a difficult market to size since it includes more than just traditional hardware and supplies (the portion that typically 'shrinks' under an MPS contract). In our view, the MPS market includes the services revenue (including professional services) and software revenue associated with Stage 3 engagements.” Further, he commented on the future of MPS, “In addition to the incremental growth drivers of services and software, it is important to realize that most of the market have yet to adopt MPS. This potential for market penetration based growth (particularly in the SMB and mid-sized markets and in emerging areas like Asia) creates a tremendous growth rate for the forecast horizon of the next four years.” He thinks that many firms are stuck in the 'old model' of forecasting transitionally based sales using vendor reported data, “Unfortunately, this approach (while it would be a heck of a lot easier) simply doesn't work for a rapidly evolving, high growth market like MPS which is by its very nature a contract services market. That is why we use a completely different multi-point data driven approach in our market sizing efforts, and it is also why our numbers differ from the firms using the 'old model'”.
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He also said that how MPS was defined as a key driver behind the differences in many of the market sizing and forecast numbers. In general, all firms analyzing the industry are positive about MPS’ growth. However, it is still vital to define MPS and the mythology of tracking the market. Otherwise, different market size estimates and forecasts will be questioned. 2) Regional differences in the MPS market In the past five years, more and more companies of all sizes have adopted MPS. MPS is also considered to be the most important emergence in the office automation industry. For regions outside of America and Western Europe, MPS faces different challenges. The Asia Pacific region is a controversial and special market. The main customers for MPS in this region are large corporations but the SMBs market for MPS is not likely to grow. IDC believes that in the short term, enterprises in the APEJ (Asia Pacific, excluding Japan) region will be looking for consolidation of service offerings. Currently, multi-tower deals in the information technology outsourcing (ITO) and business process outsourcing (BPO) services markets are seen blended into single contracts. As a result, IDC expects MPS to soon be integrated as part of such extensive contracts. According to IDC, the APEJ managed print services market is forecast to grow at a CAGR of 17% in the period 2010–2014. It will reach US$530 million in 2010 and surpass US$990 million in 2014. As most office equipment devices and supplies (including aftermarket supplies) are manufactured in this region; each country can affect the outcome of a MPS strategy, according to InfoTrends. InfoTrends conducted research of end-user and channel respondents. Six countries were the focus of this forecast (Australia, China, India, Japan, Singapore, and South Korea) in addition to a Rest of Asia Pacific (RoAP) region. About half of the economies are in emerging markets and the other half are mature or third world. It is important to look at individual country profiles to understand the potential growth of this market.
down to 14.6%, as demand for printers tapers over the first half. Though the MPS business is just beginning in China, where selling services is less widely accepted by people than selling machines, the Chinese market is forecast to grow rapidly in the years ahead. China's MPS industry totaled $248 million in 2009, and it is expected to increase to $1.72 billion in 2014, with a CAGR of 47%, higher than the forecast 22% CAGR globally over the same period, according to US-based research company Photizo Group. With such a large installed base, the management of these machines is a piece of delicious cake for all the OEMs who want to grab MPS market. China Daily, the state-run publication and news portal, reveals that Beijing Lanxum Technology Co Ltd is the largest Chinese MPS provider. It has established as many as 19 subsidiaries, with total investment of 180 million yuan (about 2.75 million US dollars), around China since October 2009, when it went public on China's second board. If we look back, we saw that copier leasing and other services such as break/fix have been accepted for many years since it started. From this point, MPS can also be seen as a novel term with old school services and some additional supplement. 2) Saving mindset Chinese, with the mindset of saving and making more savings, are more likely to accept MPS which is another saving approach. We have been double printing for many years ahead of our European and American counterparts. If you talk to anyone in China about cost reduction, it’s almost certain that they will be interested. Besides, many Chinese customers have experienced low-quality printer supplies since they used printer supplies by the standard of price before. “Once bitten, twice shy” as the saying goes, they are reluctant to purchase office equipment and its supplies based merely on price and tend to put emphasis on quality. They become smarter consumers. Earlier in 2011, Shenzhen said it would raise the minimum wage
2. MPS opportunities in China How about the MPS market in China? Many believe that MPS is embryonic, or far from mature, in other words, with potential to grow in the near future Opportunities exist in China for the following reasons: 1) Large installed base According to research firm IDC, shipments of printers in China over the first half of 2010 reached 5.8 million units, a year-on-year increase of 36.4%, because of the economic recovery. Yet the annual growth rate of the market is expected to be dragged www.recyclingtimes.com.cn | April 2011
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by 20 percent, following a similar move by Shanghai, as China continues to battle rising inflation and a labor shortage. The minimum cost of labor per month is now 10-20% higher on average in almost every city in China. With the pressure of increasing costs of labor and fierce competition, business in China has to look for ways to reduce cost. MPS would be a premium option. People’s environmental awareness has also been raised. The need for greener office has been addressed by many businesses of all sizes. 3) Higher management level In recent years, a large number of multinational companies set their branches and subsidies in China. The management level of Chinese companies has increased under the influence of their overseas counterparts. As the economy flourishes, the sizes of business also get larger. Efficiency is the key word to success in China’s competitive environment, Therefore, the new generation of Chinese entrepreneurs is more likely to try new technologies and new services to help increase their efficiency. MPS is one of the new business solutions they will be interested in. 4) Industry base China has got what it takes to develop MPS. Many leading aftermarket printer supplies companies have foreign customers who provide some sort of managed print solution. If they want to become an MPS vendor, that is achievable. Currently, most of the leading suppliers of printer supplies focus on the quality of their products and services. Chinese homegrown players are also stepping up efforts to cash in. "With foreign counterparts dominating the multinational corporation segment, our focus is on governments, State-owned enterprises (SOEs), and public institutions, in which local MPS providers have better expertise," said Ma Liyang, vice-president of Lanxum during an interview by China Daily. The company currently has more than 100 customers for its MPS business, including some defense and military departments, courts, and major SOEs, according to Lanxum. China has the appropriate foundations to become an MPS provider apart from the major OEMs.
systems integrators, software infrastructure vendors and consulting/audit firms. • Printer/copier manufacturers: These programs are tied to vendor product offerings and include assessment, design, implementation and support services. Vendors may also offer channel MPS programs through reseller partners. Canon, HP, Konica Minolta, Lexmark, Ricoh, Toshiba and Xerox are in this category. • Systems integrators/resellers: These are often a channel to market for printer and copier vendors, and may offer MPS as part of a wider desktop service offering. This category includes Atos Origin, Cap Gemini, CSC and IBM. • Software infrastructure vendors: These provide software tools for assessment and optimization of the print environment. Output management toolset and other tool providers are in this category. • Consultants: These independent firms offer a neutral approach and may also focus on a specific region, technology or market. They do not sell hardware and their assessment and design services provide recommendations that are not tied to a particular manufacturer. MPS aims to reduce print volume. Therefore, it has a negative impact on sales of hardcopy peripherals and printer supplies. So why have the OEMs (printer manufacturers) become the driving force of MPS? This is actually quite simple. The first reason is that it allows them to grab a share of the market to combat the challenge of reducing print volume. Its own hardware and services can also be part of the sales. OEMs can get more profit by just selling printer and its supplies. The OEMs are very active in offering MPS to large corporations. 2) The aftermarket’s way in MPS has a very obvious character: hardware, supplies, and break/ fix service bundle, or supplies and service bundle. If a company signs an MPS contract with an OEM, the company is not likely to
3. How can you join the party? Although the definition and sizing of MPS market remains unsolved, MPS growth definitely drives the printing market and many high-profile companies have engaged in the MPS market. How can the aftermarket printer supplies industry join the banquet of MPS and make some profit out of it? Let’s find out. 1) MPS players The overall MPS players include printer/copier manufacturers, www.recyclingtimes.com.cn | April 2011
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purchase printer supplies from the aftermarket. The larger the share of the MPS market an OEM gets, the less market share we have left. This is not good news for us. From what we have seen, there are two main ways to go into the MPS market. Firstly, work with MPS vendors and provide printer supplies for their MPS solutions. Becoming a supplies provider for MPS vendors is actually what some of aftermarket players are doing. This doesn’t differ much from simple selling of printer supplies. Therefore, we are not going to discuss this in detail here. Secondly, aftermarket players could take up MPS services. Some companies in China told us that they are currently providing MPS for overseas customers. Some overseas companies have also got into the MPS market successfully. The following two ways show how the aftermarket can get into the MPS arena. Acquire an MPS provider West Point Products (WPP) in Canada bought Multi-Laser, an MPS provider, to get off the ground and launch its MPS in 2008. WPP was started in 1972. According to its website, the company had over 650 products as of 2009. It also has many offices and warehouses in the USA and Canada. Another example of making this work can be found in AXESS Managed Print Services, which offers a comprehensive solution for the proactive management, maintenance and supply of your clients’ printing environments. AXESS provides dealers with the complete support package necessary to lock out the competition and implement a successful managed print services program supplying toner cartridges, sales, technical and monitoring support and comprehensive training. Their MPS offering is said to achieve the following tasks: • Supplies fulfillment; view exact consumable levels remotely: toner, fusers, drums, and maintenance kits; ensure cartridges are being used by tracking the unique serial number on the chip; set automated alerts for customized low toner levels; • Maintenance and servicing; set automated service alerts; set proactive service flags/reminders • Asset management and consulting; generate comprehensive reports. Develop an MPS program LMI’s print management solution is a managed print program where the provider supplies everything including toner cartridges, printer parts, equipment, service on the devices, consulting and support in a cost-per-page or usage-based model, according to the company’s statement. LMI is an example of a company in the aftermarket that has developed its own MPS program. What advantages do aftermarket companies have in MPS? There are two main points.
Firstly, MPS is an all-inclusive solution. It is attractive to users. MPS provides customers with a cost-per-page plan that covers all of the devices, including copiers, printers and multifunction output devices and get consolidated billing for a certain period of time. This is handy and customers can literally calculate the cost of each copy, making it very easy to determine whether it makes savings or not. MPS providers will handle all the cartridges and customers don’t need to go to a shop for printer supplies or go to different vendors to make price comparisons. Secondly, product quality is vital to an MPS offering, especially in terms of page yield. A quality cartridge is the most important part of MPS. You can calculate the cost per page and customers can accept your deal. However, since MPS hinges on knowing how much ink or toner you have in a cartridge, you have to make sure you do your calculations right. Quality is also paramount - if you don’t have a quality cartridge that gives you the page yield that you are relying on, you might end up losing money. If a cartridge only has half of the yield its manufacturer claims, you have to buy more cartridges to meet the consumers’ demand. The cost almost doubles. Quality also means reliability. This is extremely important for business. No MPS dealer wants to provide a cartridge and then deal with any problems it causes while earning no extra money out of it. From this, we can tell that a quality guaranteed cartridge is the most basic foundation to get into the MPS market. For many of the companies in China, this is an achievable goal or was achieved a while ago. There are many quality manufacturers of cartridges in China. They are up to the challenge of satisfying demand for quality. While the MPS market size is in question, MPS is bound to become the most important banquet for the industry. As a major trend in document management, MPS is not as difficult to step into as some may think. Whoever comes to the banquet first will get served and take the initiative for the future. Are you ready? www.recyclingtimes.com.cn | April 2011
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Features
Kodak enters MPS arena? —Konica Minolta & Kodak’s Global Agreement OK, I know I got your attention with that headline and I promise, I will get to it, but first, here’s some background. Last week, Konica Minolta and Kodak announced a global distribution agreement that puts each other’s respective digital imaging systems in each other’s portfolios. While many manufacturers market competitive products under their own labels (Ricoh sells Samsung devices under the Ricoh brand, OKI sells Toshiba as OKI products, etc.), a recurring trend seems to be that vendors are taking on competitive products and keeping the competitive name in order to leverage the reputation of the respective brand. Indeed, unlike HP’s last A3 OEM arrangement where they relabeled Konica Minolta boxes under the HP label, HP has opted to keep the Canon label on the box with their current agreement with Canon for MPS engagements. I don’t know that this is actually significant but I do find it interesting that many printer/copier manufacturers are recognizing that it adds more credibility to sell a product with someone else’s label on the front of the box in circumstances when they have a limited reputation in that market. For example, HP has never been a player in A3 console devices (sorry Edgeline, we were cheering for you). When they marketed the Konica Minolta hardware several years ago, there was very limited success and I get the gut feeling that their sales force never really accepted these devices. Fast forward to today and HP MPS sales people seem to enjoy selling Canon products. Instead of having to defend the fact that these aren’t HP devices, the customer knows this from day on and HP gets to explain that they chose Canon of all other brands because they felt they were the best fit and that Canon makes the best MFPs. This approach makes sense for the Konica Minolta/Kodak deal. Rather than spend time explaining to the customer the obvious – that this “bizhub PRO” is really a Kodak machine; the Konica Minolta rep can discuss the fact that Konica Minolta publically partnered with Kodak because their products were a good fit for their portfolio, and vice versa. Now back to the actual agreement. Is this meaningful and what does it bring to the table for Konica Minolta and Kodak? A lot. Konica Minolta has muscled their way into the production color market over the last several years. Last
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year’s introduction of the bizhub PRESS models was a huge step forward, providing customers with a solid alternative to Canon’s imagePRESS and Xerox’s DocuColor/DocuPrint products. However, the bizhub PRESS portfolio topped out and left the Konica Minolta sales rep out in the cold when the opportunity existed for products beyond the capability of these light production engines. Once the Xerox sales rep got the customer interested in iGen, it was pretty much over. Now, like Ricoh sales reps, Konica Minolta has NEXPRESS, an offering that allows them to go toe-to-toe with iGen in many situations. However, unlike Ricoh, who early on struggled with the reputation of the PRO 900 digital press series, Konica Minolta has been building a very strong reputation in light production, particularly in color. NEXPRESS is a natural extension of these products. Konica Minolta has an extensive branch system and some pretty strong dealers that have been marketing production level equipment for several years. The NEXPRESS and DIGIMASTER products offer very strong VDP capability and fit nicely at the upper end of Konica Minolta’s portfolio, essentially picking up where their own products leave off, with very little overlap. What does this mean for Kodak? The addition of Konica Minolta to their growing list of distributors means that Kodak has another powerful sales force now marketing their equipment. On the other side of this partnership, it should be noted that Kodak is now also offering bizhub PRESS models, a move that not only further legitimizes these products as strong light production options, but in theory, also provides Konica Minolta with some added distribution.
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Features
Here’s the hidden gem of all of this and the actual reason for this article. This partnership brings Kodak another step closer to becoming another office equipment supplier. Has anyone else noticed that Kodak now offers high-end production as well as office scanners that can be equipped with document scanning software? At some point, doesn’t it make sense for them to jump back into the copier/MFP world? They already have sales reps walking into production environments pushing products. Why cut yourself out of a deal when the customer wants a one- stop shop? Even if it doesn’t make sense to brand their-own products, HP has shown that there’s no need to do that.
And don’t get me started on MPS and the opportunity that lies in that market (too late!). When you have zero marketshare, everything you grab is net new. And you don’t even need to support it. HP doesn’t support Canon’s products, but Canon does. Do you think Rick Taylor would have any reservations about supporting bizhubs Kodak sells? I’m guessing not. So here is what I am asking. While it may be a bit of a stretch to say Kodak should get back into copiers, it’s no stretch at all for me to ask, “Why doesn’t Kodak jump into MPS?” They have the relationship with Konica Minolta if they want to source A3 products. “But they don’t have laser printers,” you might say. I have a list of A4 vendors sitting on my desk right here who would love for me to put their portfolio in a Kodak MPS reps’ pitch book. This is the new world. Kodak doesn’t need to make the products. They are already walking into customer’s offices pitching imaging. And these aren’t mom and pop shops – these are often big customers like massive commercial printers and publishing houses. These customers are huge opportunities.
Here’s another reason why Kodak could make MPS work for them. From our research, it’s apparent that margins erode when the MPS seller tries to convert the customer to their own brand of devices. To put it simply, I can make a lot more money supporting your HP printer with non-genuine HP toner than I can make selling my own brand with genuine supplies. Companies that really play in MPS get this and that’s why so many of the really good ones, that is, the ones really raking in the coin, are making a point of keeping HP products at customer sites. Whether they have to sell a new, used or remanufactured HP device to replace the one that their customer is using, they will often make more money if they don’t sell their primary brand. I was at a Kyocera Mita dealer meeting last year and I had a very telling conversation. In the middle of the worst economy since these dealers have been in business, I met a couple of guys who were killing it with MPS. Their DSM was standing with them and when they were yammering on about how well they were doing and how great a pitch MPS was for them, I asked the DSM how his numbers were. “Down,” He said. I looked at them and said “you’re killing it, but his numbers are down. You’re selling a lot of rebuilt HP’s aren’t you?” The dealers shushed me and quickly changed the subject in a joking manner while their DSM just shook his head. This is where the money is. When it comes to business printing, Kodak has no product line. They have no portfolio to support. They have no quotas, no inventory and no factories. They would be the only vendor in the MPS space not at risk of eating their young. Everything is new and it’s all gravy. They have the brand recognition. They have the relationships. There is software and other technology their would-be competitors would never dare to use because of the impact on their current revenue stream but Kodak wouldn’t have to worry about this. They have the infrastructure and sales organization and there is a glut of talent available to ramp up. To quote Sam Kinneson, “why don’t you move where the food is?” Hey Kodak, after you read this, give me a call I have a few ideas as to how you might be able to make some easy money.
Andy Slawetsky Andy Slawetsky is President of Industry Analysts, Inc., a market research, training and producttesting firm in the US focused on the print industry. Mr. Slawetsky currently lives in Rochester NY and began his career as a copier sales representative in 1993.
www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
Profiles
Toner queen builds her color castle —Interviewing Mary Ouyang, GM of Mito Mary Ouyang has built up her own color castle in remanufacturing color toner cartridges. So much so that she is also called “toner queen” by her counterparts. Recycling Times interviewed with Mary Ouyang, general manager of Mito Color Imaging Co., Ltd. to find out how this legend has come about.
1
You are called “toner queen” by your counterparts. Can you tell us about getting the nickname? I entered remanufacturing industry 17 years ago as a copier toner sales representative. At that time, the consumables industry in China was disorganized and there were not many women in the industry running around the country for toner business. I built up the toner cartridge company starting by selling toner. That is why they call me toner queen.
2
You were a teacher before you came into this industry. It is a huge step from education to technology. How did you make the choice and start your career in remanufacturing business? In university my major was Chinese. I taught for two years after graduation. One day, I just want to go out and take some challenging job. My aunt was a pioneer in the copier toner industry at that time. Under her influence, I started to work in the copier toner business. As the market trend shifted to printers, I gave up the copier toner business and wound up in remanufacturing toner cartridges for printer and multifunctional devices. Although my experience in
▲ Mary Ouyang at office
▲ Mito Color’s sales team at trade show
teaching seems irrelevant to my current job, I do think Mito Color is a bit like a school where all the employees can grow and develop their skills.
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Starting a business is no easy task. What kind of challenges did you encounter on your way? When I first stepped into the remanufacturing business, we had a inkjet cartridge brand – Mito – and it was sold in the Chinese market. However, we didn’t have our own plant to make inkjet cartridges at that time. If we wanted to stay in this industry, we had to build our own factory and control the manufacturing process. Therefore, we decided to construct our own plant. Not long after the factory was built in 2005, Mito Color went through a major quake, many employees left. There were only five of us left in the company, including the woman who prepared our meals every day. I talked to the other four and said: “if you don’t think the printer consumables industry is promising, or you don’t think I can make this business work, I think you should leave because you are all very talented, you cannot afford to waste your time here.” However, they told me they thought I could make this work, they said: “if www.recyclingtimes.com.cn | April 2011
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Profiles
you believe in doing this, we will stand by you.” I was so moved by them at that time. They had so much faith in me. We went through that tough time and built up what we are today.
4
Mito Color is known as the only company that makes only remanufactured color toner cartridges. Color is more challenging technologically than black. Therefore, some companies may choose to remanufacture only a very small proportion of color cartridges. Why does Mito Color only remanufacture color toner cartridges? We want to distinguish us from other manufacturers. Mito’s strength and support, including information, technology and material, are around color toner cartridges. We want to do what we do best. When we got started with color toner cartridges, we had about ten staff in the lab, with the least number of staff down to five. Still, we were determined to make color. When the first sample printing was out, the beautiful and vivid color amazed me. I am a woman and I like beautiful things. I want every printed material to be perfect. Interest drives me to do the best and achieve best results. Presently, Mito Color has a monthly capacity is around 60,000 pcs. We just moved to a new facility and the capacity will increase. We also saw some other opportunities on the way but we still focus on high-end market and make the best color toner possible.
5
Some say whoever masters color can seize the future. Some may say color printing will not become the mainstream in the next three to five years, or worse, color will never become the mainstream. What do you think about this? As paperless office and electronic readers become popular, printing volumes cannot continue to increase. Color also
▲ Mito Color’s newly built factory
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▲ Mito Color’s color toner cartridge line
faces challenges like everybody else. At this juncture, quality, cost and the demands of high-end customers are the most important factors for us to grow. Mito Color is now working with aftermarket suppliers to ensure the best quality of the parts. Although the color printer is now sold at a very low price, its OEM toner is still very expensive. If compatible printer supplies are improved in terms of quality and service, we can definitely overtake OEM printer supplies in market share with the advantage of half the cost of OEMs. Mito Color has an annual growth of 100% in shipments. From this sales figure, we can tell that demand is still looking up. If it weren’t for the 2008 financial crisis, the color market would have developed a lot faster. Fortunately, the crisis brought opportunities to aftermarket printer supplies industry as a whole, since consumers sought less expensive alternative printer supplies. I think as the economy goes up, the color market will still grow.
6
Mito Color aims at the high-end color market. What do you think of the market in China? Firstly, for developed countries, color printer supplies are well-accepted. The installation base of color machines in developing countries is lower than that of Europe and Australia. Therefore, we have to consider the recognition of compatible printer supplies and the printer market in these regions. Normally, people might think color printers mean better quality and they may have higher expectations of the toner. Secondly, the users’ operation of toner is also very important. Sometimes, one in four of the color cartridges is not working and the consumer will think the whole set of four cartridges are not working. In the Chinese market, we observe many problems. Although color printers are increasingly popular in China, personal and small-and-medium sized companys’ ownership of color printers is still very low and only large corporations
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Profiles
or government offices are likely to purchase color printers. We are also working to include remanufactured color toner products in government procurement schemes.
7
You are a woman who has occupied key positions in a company for years. Do you have any advice for women who want to break the glass ceiling? I do admit that women and men are different in many aspects. Women, I think, have advantages over men when it comes to management. Firstly, women are friendlier in general and they may not be targeted as a rival by their male peers. They normally seem to be not as aggressive as men, which is good for the company to grow when the business is just starting. Secondly, women tend to make the company a big family where everyone in the company feels he or she belongs. They are not an outsider of the company. This works better for the development of the company. Thirdly, women should use their sensitivity wisely. Try to grasp the trends of the market, communicate with your counterparts and deal with potential dangers in the company. There are also several points that require attention. Woman should have a big heart. When the company gets larger, we may encounter betrayals from business partners
or attacks from a competitor. Be tolerant and forgiving. Your subordinates would love to work with a forgiving boss. Don’t drone on all the time. Even if what you say mean something, try to be concise and precise. Keep it short and simple.
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How do you treat your family? Like you lead your company? Role switching means a lot when it comes to family. Balancing family life and professional life is all about role switching. I learned from my failed marriage that communication is vital in seeking understanding, respect and support from your family. I am lucky enough to be able to balance family and career pretty well now. I just want to say that failure in marriage is not the prescribed destiny for woman who holds a key position in a company. Summary Toner queen Mary Ouyang is happy about her life and work and she has encountered many twists and turns on the way. However, she chooses to keep going and be optimistic, peaceful and confident towards life. She leads Mito Color to a brighter world with beautiful color in her wings.
! s u o t s w e i v d n a s ew
n r u o y Send
Contact Recycling Times Email: editor@therecycler.com.cn Tel: +86 756 3919268 Fax: +86 756 3220717 www.recyclingtimes.com.cn | April 2011
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Management
Compensation and benefits review (part one) By Alfie Kohn The idea that dangling money and other goodies in front of people will "motivate" them to work harder is the conventional wisdom in our society, and particularly among compensation specialists. Those of us who have challenged the Skinnerian orthodoxy that grounds this conviction have apparently caused its professional apologists to reassert in ever more emphatic and defensive language what most of their audience already takes on faith. (Hence the amusing spectacle of being admonished that it is "time that management specialists ... understood the importance of money" -- as though the field were guilty of attributing too little importance to it!) Lest there be any doubt, however, Gupta and Shaw [Compensation & Benefits Review, March/April 1998, page 30] strain to frame the issue as a choice between anecdotes and hard science (the science unambiguously supporting their position, of course) or between utopian fantasy and the "real world." I propose that we try to examine a few of the many issues involved with a little more care and precision. 1. Does money matter? The first response to this question by a reputable social scientist would be: "Well, what society are we talking about -- and what historical period?" If indeed it turned out that a disproportionate number of contemporar y Americans were preoccupied with money, that would hardly give us license to draw sweeping conclusions about "human nature" or to offer prescriptions premised on such conclusions. As it happens, even in our own society maxims about the significance of money are offset by proverbial reminders about what can't buy happiness, what is the root of all evil, and so on. Then, too, we must be careful about attributing to everyone
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what is true of some. That the have-nots tend to think about having more tells us about deprivation rather than about the inherent centrality of money. Many of us pour our time and love into avocations -- that is, activities for which we will never be compensated -- nicely making the point that money for most of us is not the point. (One thinks not only of the usual hobbies but also of raising children, an activity reasonably certain to produce a net loss.) Yes, there are affluent people whose lives nevertheless do seem to revolve around making money, but on some level we understand that this is a futile attempt to fill a psychological void, to make up for genuine needs that are not being met. New evidence suggests that the more people are driven by a desire to be wealthy, the poorer their psychological health on a range of measures. Gupta and Shaw's article reminded me of an observation by the sociologist Philip Slater: "The idea that everybody wants money is propaganda circulated by wealth addicts to make themselves feel better about their addiction." Even if we confine our discussion to the workplace, numerous studies have shown that when people are asked what is most important to them about work, money ranks well behind such factors as interesting work or good people to work with. (Interestingly, when managers are asked what matters most to their employees, they tend to rank money at the top of the list-
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Management
and then proceed to manage on the basis of that error.) None of this is meant to imply that money doesn't matter to people, only to offer a nuanced alternative to declarations at the level of "most of us are motivated by money" -- the first dubious link in a chain of assertions that is supposed to justify manipulating people with incentives. 2. Does money motivate? The most important point to be made here is that this is a very different question from the first one. Even if money matters more -- and to more people -- than I think it does, that is by no means tantamount to showing that it motivates people. By one definition, nothing can meaningfully be said to "motivate" people. Various devices can be used to get people to do something, but that is a far cry from making people want to do something. Seminars and articles with titles like "How to Motivate Your Employees" should be avoided at all costs: not only is the basic premise psychologically misconceived, but the prescriptions are likely to involve attempts to control people and therefore to make things worse in the long run. You could not ask for a crisper contrast with behaviorism, which assumes that all behavior is ultimately initiated by the external environment (in the words of one proponent). Intrinsic motivation is typically placed between quotation marks by Skinnerians as though to call its very existence into question. For the rest of us, who find it meaningful to distinguish between intrinsic motivation (where the task itself is experienced as appealing) and extrinsic motivation (where the task is seen as a means to an end, a prerequisite for receiving a reward or avoiding a punishment), the question then becomes not "How motivated are people at our organization?" but "How are our people motivated?" It is not the amount of motivation that matters, but the type. Hence we might agree (by a looser definition) that someone could be motivated by money, but then immediately add that this would probably signal a major problem, a motivational orientation that isn't associated with a high quality of work or quality of life. 3. What does the research say? On the questions that matter there are indeed very few relevant workplace studies. Probably this is because the conventional view that money "motivates" people, and hence that welldesigned reward schemes are bound to be effective, is accepted as religious dogma -- and there is no need for a scientific test of religious dogma. Anyone can insist repeatedly, and in an ever more aggrieved tone, that what data do exist support one's own position
"consistently," "clearly," "unambiguously," and so on, but that does not make it so. It's hard to comment on a meta-analysis that hasn't yet been published, but the earlier review of studies by Jenkins -- presumably many of the same studies analyzed with a different statistical methodology-makes my case very powerfully. First, most of the research showing a positive effect of financial incentives looked only at short-term results. Second, the effect was most likely to be positive when subjects were given simple, indeed virtually mindless, tasks to do. Third, as Gupta and Shaw acknowledge and then try desperately to "spin" away, incentives at best seem to be effective only in quantitative terms (e.g., getting people to do something faster). Jenkins was quite clear about the effect of incentives on quality: they don't help. While acknowledging that the five relevant studies he dug up didn't explicitly tie pay to quality, he wrote that "laboratory and field experiments alike appear to be unanimous: financial incentives do not improve performance quality." That finding needs to be understood in the context of at least two dozen studies in other settings demonstrating that rewards are not merely ineffective but actually counterproductive. Subjects offered an incentive for doing a task (or, in some of the studies, for doing it well) actually did lower quality work than subjects offered no reward at all. As University of Texas psychologist Janet Spence put it after discovering this surprising effect in an early study of her own, rewards "have effects that www.recyclingtimes.com.cn | April 2011
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interfere with performance in ways that we are only beginning to understand." One would never guess from their defiant assertions about how the research backs them up that the reality is very nearly the reverse of what Gupta and Shaw claim. The detrimental effect of rewards on performance has been demonstrated with children and adults, across cultures, with every kind of reward imaginable (including but not limited to money), and with a range of tasks -- although the damaging effect is more pronounced as the tasks become more complicated and quality becomes more important. I realize that the dispute to which Gupta and Shaw and I are treating you only seems to confirm the cynical, eye-rolling reaction that research can be cited to prove anything. But not all research is equally well designed, and not all studies are trying to show the same thing. I readily concede that studies often prove that "rewards work." But we should immediately ask: "Work to do what? And at what cost?" Like sticks, carrots can often elicit temporary compliance --or short-term blips in the quantity of performance at relatively simple tasks. To the best of my knowledge, though, no controlled scientific study has ever found a long-term enhancement of the quality of work as a result of any reward system. For five years, I have challenged defenders of incentive systems to provide an example to the contrary, and I have yet to hear of such a study. The cost of rewards -- and one of half a dozen compelling explanations for why performance isn't enhanced by their use -- has to do with their effect on interest in the work itself.
If you're willing to question the behaviorist penchant for collapsing intrinsic into extrinsic, and to look at how people are motivated, then it becomes disturbingly clear that the more you use rewards to "motivate" people, the more they tend to lose interest in whatever they had to do to get the rewards. Extrinsic and intrinsic motivation not only are different, in other words -- they generally are reciprocally related: as extrinsic goes up, intrinsic most often goes down. (There are qualifications to this, of course, but it's a reasonably accurate summary, as contrasted with the egregiously simplistic claim that rewards cause people to be "more motivated.") At least 70 studies have found that rewards tend to undermine interest in the task (or behavior) itself; this is one of the most thoroughly replicated findings in the field of social psychology. Gupta and Shaw essentially ignore that impressive body of research, relying instead on two claims. First, they say that because incentives can boost performance (that is, shortterm quantitative performance) even on interesting tasks, it can be inferred that incentives don't reduce interest. I read that paragraph three times, trying without success to grasp the logic here. That people might temporarily work faster at a task in fact tells us absolutely nothing about how they feel about that task, or whether they'd want to do it again in the absence of rewards. Studies that have examined this question directly (unlike Gupta and Shaw's) have repeatedly shown that the more salient or reinforcing the reward is, the more it erodes intrinsic interest. Second, they cite a meta-analysis by Cameron and Pierce whose methodology is, in my view and the view of research psychologists without a prior commitment to behaviorism, fatally flawed. But even if one accepts its approach, these authors had to concede that the expectation of a tangible reward in connection with a task is indeed associated with less voluntary time spent on the task later as compared with a no-reward condition. This finding, whose significance Cameron and Pierce (like Gupta and Shaw) are at pains to minimize, stands as further confirmation of what most other reviews of the research have found. (The Cameron and Pierce article, incidentally, was principally concerned with rewards in a classroom context and studies involving children. Apparently essays dealing with this population are acceptable to cite when they support one's position, whereas research demonstrating that rewards cause children to lose interest in what they're rewarded for doing can be dismissed as irrelevant to compensation issues.) Disclaimer: Copyright 1998 by Alfie Kohn. Reprinted with the author's permission.
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Welcome to RechargRussia Expo 2011, Your Pathway to the Russian Aftermarket of Printing Supplies! RechargRussia and RechargEast Magazines, well-reputed magazines specialized in the aftermarket of printing supplies in Russia and Eastern Europe, are happy to invite your company to take part in the VIIIth edition of RechargRussia Expo 2011, which will take place in Moscow, Russia, on May 18, 19, 20, 2011. The RechargRussia Expos are traditionally organized in Moscow, which hosts this exceptional and unique event for the printing industry every year. The exhibition attracts thousands of specialists from the aftermarket of imaging and printing supplies. Owner, managers, technical specialists and salesmen from Russia and CIS countries are the main visitors of the exhibition. RechargRussia Expo is the only professional event in the field of printing supplies organized in the Russian capital. Leading manufacturers and distributors of toner, inks, OPC drums, parts, remanufactured and compatibles cartridges all gather in Moscow each year to show their best products to the Russian aftermarket companies. Local distributors, resellers, rechargers come to the exhibition to get to know local and international exhibitors, get updates on market trends, start new and reinforce existing relationships and partnerships. Our experience in organizing 7 consecutive specialized exhibitions in Russia is extremely valuable and can be used by your company to its utmost profit.
Feedback from the 2010 exhibitors: Steven Yao, APEX, China: “The 2010 expo exceeded our expectations. We will surely take part in the show in 2011 and will probably choose to have a bigger booth to display all our products”. Angela Shekyls, SPEED INFOTECH
Be in Moscow on May 18 and 19, 2011, when you will have the opportunity to attend the presentations of the 20 biggest buyers of compatible and remanufactured cartridges in Russia and CIS! With the total annual purchasing power of over $250 million, these companies are the leaders in the market. Don’t miss the chance to meet them personally as they are always open to new mutually beneficial partnerships. Russian companies buy remanufactured and compatible cartridges for over $586 million* per year. (*Source: Business-Inform, Russia) Market share (%)
Holdings, Ltd., Russia/China: “The 2010 exhibition was good to our company. We met many visitors from the last year’s show. Although we didn’t get too many
Genuine supplies Compatible supplies Refills
new customers from the 2009 show, but in 2010 the prospects are looking good. This
Russia Market of Printing Supplies in 2004-2009
year there have been much fewer end users, but the number of distributors has grown. In addition, we’ve had many visitors from the far regions of Russia. We are definitely Year
interested very much in participating in the expo in 2011.” Ozlem Eris, IPM, Turkey: “In 2009 we established fruitful cooperation with
Qty, million units Qty, original cartridges Qty, non-original cartridges Qty, refills
Russia Market of Laser Printing in under 45 ppm Segment
some Russian companies. In 2010 we are expecting to make our position even stronger in this market. All this happened with the help of RechargRussia Expos. We are glad that we participated in RechargRussia Expo 2010 and we have already reserved our booth for 2011.”
Year
www.rechargrussiaexpo.com
Recycling Times Magazine
Market Data
IDC: worldwide hardcopy peripherals market shipments grow 7% year over year in 4Q10 The worldwide hardcopy peripherals market witnessed record high shipments of more than 36.5 million units in the fourth quarter of 2010 (4Q10) and posting 7% year over year growth. According to the International Data Corporation (IDC) Worldwide Quarterly Hardcopy Peripherals Tracker, this is the highest quarterly shipments since the fourth quarter of 2007. Overall, the worldwide hardcopy market continues to aggressively transition away from single function into the multifunction space. In 4Q10, the total share of multifunction printers (MFP) was 67%, up four points from the previous quarter. "After experiencing one of the most difficult economic periods in recent memory, the worst is over. It's time for the market to return to normal. For 2011, we anticipate that the recovery will continue at a slow and steady pace. The return to growth will not be uniform across all countries and segments; developed regions are expected to show gradual or steadier activity, while developing regions are projected to show faster and higher growth levels," said Phuong Hang, program manager, Worldwide Quarterly Hardcopy Peripherals Tracker. The top three vendors – HP, Canon, and Epson – captured more than 75% share of the total market in 4Q10. With 15.5 million units shipped, HP exhibited the highest year-over-year growth of 10%, followed by Canon's 5% and Epson's 2%. With the exception of Western Europe, HP enjoyed positive year-overyear growth across all regions.
growth, and Central & Eastern Europe (CEE) at 25%. Monochrome laser accounted for 83% of the laser market with 9 million units shipped in 4Q10. Although the transition to MFP has been observed, monochrome laser printers remain the most prolific type of laser in the office with close to 5.6 million units. Color laser grew 10% year over year to over 1.8 million units, resulting in 17% share in the total laser market in 4Q10. Color laser MFP continues to show signs of expansion and has increased its share in the color laser space to by over two points to 48% when compared to share seen in the previous quarter. Regional highlights United States With only 120K fewer shipments than Western Europe, the region came in 2nd overall with 22% market share and 5% year-over-year growth. Unlike the double-digit growth experienced in the last two quarters, Q410 saw a modest year-over-year trend of 5% growth in laser technology. The inkjet market also recorded a 5% year-over-year gain with
Technology highlights Inkjet remains the dominant technology in the overall hardcopy peripherals market with close to 24.5 million units shipped, representing 67% share. The fourth quarter saw yearover-year inkjet declines in the Asia/Pacific (excluding Japan) (APeJ), Middle East & Africa (MEA), and Western Europe markets. The highest year-over year-growth was observed in Latin America at 16%. This quarter marks the highest laser shipments with close to 11 million units shipped. All regions recorded year-over-year growth in this space, with Latin America leading the way with 35% www.recyclingtimes.com.cn | April 2011
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Market Data
more than 6.6 million units shipped during the quarter. Western Europe After losing out to APeJ during the past two quarters, Western Europe regained its status as the number 1 region for total HCP shipments in Q410 with more than 8 million units shipped. The region grew 2 points to 23% share in the worldwide hardcopy peripherals market compared to the previous quarter. This positive trend was driven by the stronger year-over-year growth in laser technology – 10% versus -1% for inkjet. Central Eastern Europe & Middle East and Africa (CEMA) The region accounted for 14% share of the worldwide market with close to 5 million units, and exhibiting 8% year-over-year growth. Double-digit growth in Central & Eastern Europe (CEE) fueled the high growth in the region. Despite year-over-year growth of -2%, inkjet technology regained the top spot in the region after losing out to monochrome laser during 3Q10 with close to 2.5 million units shipped and posting over 50% market share. The laser segment increased 22% year over year to more than 2.3 million units shipped in the quarter.
consistently the highest volume quarter for inkjet shipments as consumers purchase devices to print and send New Year's cards to family and friends. Driven by high demand in the Small and Medium business segment, 4Q10 came in with strong results in the laser space, resulting in more than 380,000 units shipped and 17% year-over-year growth. Vendor highlights HP HP dominated the market with over 15.5 million units shipped in 4Q10, the highest quarterly shipment since the last quarter of 2007. The vendor grew 10% year over year, the highest year-overyear trend among the top 5, and gained 2 points to 42.5% share in the total worldwide market in 4Q10. With the exception of the Western European inkjet market, HP showed year-over-year gains across all regions in both inkjet and laser segments during the last quarter of the year. The vendor closed out the year on a high note, posting 15.6% year-over-year growth for the full year and outperforming the market average by nearly 4 points.
Canon Despite having the highest shipments ever, Canon finished a Asia/Pacific (excluding Japan) (APeJ) For the first time in 2010, APeJ 4Q10 Unit 4Q10 Market 4Q09 Unit 4Q09 Market 4Q10/4Q09 lost its top spot to become the Vendors Shipments Share Shipments Share Growth number 3 region in the world in HP 15,531,340 42.50% 14,099,688 41.40% 10% terms of HCP shipments. Despite 18.80% 6,563,098 19.30% 5% posting 11% year-over-year growth Canon 6,869,425 in Q410, the region lost 4 points to Epson 5,535,657 15.20% 5,428,887 16.00% 2% 22% share in the worldwide market. Brother 1,845,213 5.10% 1,708,693 5.00% 8% APeJ continues to be the top ranked 4.80% 1,700,184 5.00% 3% region in the worldwide laser market Samsung 1,749,353 with 30% of total shipments, while Others 5,006,691 13.70% 4,518,895 13.30% 11% its inkjet shipments ranked 3rd with Total 36,537,679 100.00% 34,019,445 100.00% 7% 15% in the total inkjet market. For ▲ Worldwide Hardcopy Peripherals Market Share and Year-Over-Year Growth, Fourth Quarter 2010 the first time ever, Canon inched Source: IDC Worldwide Quarterly Hardcopy Peripherals Tracker, March 9, 2011 past HP and achieved the number 1 2010 Unit 2010 Market 2009 Unit 2009 Market 2010/2009 Vendors ranking in the APeJ inkjet market. Shipments Share Shipments Share Growth Japan HP 52,740,770 42.1% 45,634,488 40.8% 15.6% Japan moved up one spot to 18.1% 21,077,887 18.9% 7.5% become the number 6 region in the Canon 22,653,082 last quarter of 2010. Japan accounts Epson 18,269,836 14.6% 16,657,618 14.9% 9.7% for 8% share of the worldwide Samsung 6,891,155 5.5% 5,373,732 4.8% 28.2% market with close to 2.8 million 5.4% 6,366,899 5.7% 5.5% units shipped, and posting 5% Brother 6,714,144 year-over-year growth. The inkjet Others 17,950,746 14.3% 16,621,517 14.9% 8.0% segment grew 3% year over year to Total 125,219,733 100.0% 111,732,141 100.0% 12.1% close to 2.4 million units shipped in ▲ Worldwide Hardcopy Peripherals Market Share and Year-Over-Year Growth, 2010 4Q10. The last quarter of the year is Source: IDC Worldwide Quarterly Hardcopy Peripherals Tracker, March 9, 2011
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Recycling Times Magazine
Market Data
distant second overall with close to 6.9 million units and 18.8% share in the total hardcopy peripherals market in the fourth quarter. During 4Q10, the vendor grew its shipments 5% year over year, gained 2 points in market share sequentially and remained unchanged from a year ago. This quarter marked the first time ever where Canon inched past HP and achieved the number 1 ranking in the APeJ inkjet market. While achieving stellar results in Asia/Pacific (excluding Japan) with 1.4 million units, the vendor's inkjet segment only grew 1% year over year. Laser technology, on the other hand, enjoyed doubledigit growth across most regions and resulted in 24% year-over-year increase. Canon finished the full year 2010 with 7.5% year over year growth in total shipments, nearly 5 points below the market average of 12% growth.
Vendors
4Q10 Unit 4Q10 Market 4Q09 Unit 4Q09 Market 4Q10/4Q09 Shipments Share Shipments Share Growth
HP
15,531,340
42.50%
14,099,688
41.40%
10%
Canon
6,869,425
18.80%
6,563,098
19.30%
5%
Epson
5,535,657
15.20%
5,428,887
16.00%
2%
Brother
1,845,213
5.10%
1,708,693
5.00%
8%
Samsung 1,749,353
4.80%
1,700,184
5.00%
3%
Others
5,006,691
13.70%
4,518,895
13.30%
11%
Total
36,537,679
100.00%
34,019,445
100.00%
7%
▲ Worldwide Hardcopy Peripherals Market Share and Year-Over-Year Growth, Fourth Quarter 2010 Source: IDC Worldwide Quarterly Hardcopy Peripherals Tracker, March 9, 2011
Vendors
2010 Unit 2010 Market 2009 Unit 2009 Market 2010/2009 Shipments Share Shipments Share Growth
HP
52,740,770
42.1%
45,634,488
40.8%
15.6%
Canon
22,653,082
18.1%
21,077,887
18.9%
7.5%
Epson
18,269,836
14.6%
16,657,618
14.9%
9.7%
Samsung 6,891,155
5.5%
5,373,732
4.8%
28.2%
6,714,144
5.4%
6,366,899
5.7%
5.5%
Others 17,950,746
14.3%
16,621,517
14.9%
8.0%
100.0%
111,732,141
100.0%
12.1%
Brother
Total
125,219,733
▲ Worldwide Hardcopy Peripherals Market Share and Year-Over-Year Growth, 2010
Source: IDC Worldwide Quarterly Hardcopy Peripherals Tracker, March 9, 2011 Epson Epson held the number three position overall in 4Q10 with vendor's 5.5% year-over-year increase for the full year 2010 more than 5.5 million units shipped and 2% year-over-year was below the market average of 12%. Samsung growth. While showing an increase year over year, the vendor While having its highest shipments ever, Samsung dropped declined 1 point from a year ago to 15.2% market share. Canada and the U.S. were Epson's best performing regions, with 46% one spot from last quarter to the number 5 position in the total and 30% year-over-year growth, respectively. The vendor hardcopy peripherals market. The vendor grew 3% year over completed finished 2010 with 9.7% year-over-year growth. Once year during the last quarter of 2010, resulting in more than 1.7 again, Canada and the U.S. were among the top 3 regions in million units shipped and 4.8% market share. Samsung's 4Q10 2010 with 41% and 14%, respectively. Latin America was Epson's performance was aided by positive growth in Western Europe best performing region for the full year with 45% year-over-year and Latin America, which grew 22% and 28%, respectively. The U.S. was Samsung's worst performing region in 4Q10 with a growth. -34% year-over-year trend. Samsung outperformed the market by Brother Brother moved up one spot from last quarter, and in 4Q10 posting 28.2% year-over-year growth for full year 2010.
was the fourth-ranked vendor in the worldwide hardcopy market with 5.1% share and close to 2 million units shipped. The vendor's shipments grew 8% year over year in 4Q10 due to stronger gains in the laser segment; 16% vs. 1% for inkjet. Latin America was Brother's best performing region in 4Q10 for laser shipments with 94% year-over-year growth, followed by 57% in Asia/Pacific (excluding Japan) and 46% in Middle East & Africa. Despite posting significant growth in laser, the
Notes: • IDC tracks A2-A4 devices in the Quarterly Hardcopy Peripherals • Hardcopy Peripherals include single-function printers, printer-based multifunctional systems (MFPs), and singlefunction digital copiers (SF DC). Data for all vendors are reported for calendar periods. www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
Legal Issues
Epson's trick in the Asian market By Jarek Yang, senior engineer of State Key Laboratory of Fine Chemicals At the end of 2010, Epson globally launched its new product which is known as “7-contacts” in the industry. Its printers have been released and promoted in all fronts within a short period and these are likely to replace 731 series, and the reason is obvious – Epson is facing a huge obstacle in the Asian market from CISS (continuous ink systems) since Asian people prefer to choose economical compatible products to save money and consumers are reluctant to buy inkjet cartridges from the OEMs.
As of February 23, 2010, Epson had already released as many as 17 types of printers and 18 types of inkjet cartridges, a situation rarely seen in history. On February 22, Epson released the K100 and K200 monochrome inkjet printers in Singapore, China and Japan. These have the same perfect performance as laser printers with a speed of 36ppm under draft mode, and are clearly aiming to grasp the SOHO market of laser printer. These two types of printers adopt the Durebrite ink which is water-resistant, scrape-resistant and fade-resistant, and generally akin to laser printer prints, with better color and smoothness. Epson also released the analogous large capacity L100 and L200 in the Indian market at the end of 2010 and these are similar to one of the CISS products. It is well known that the Asian market is directed by CISS and Epson’s original products are finding it hard to step forward. If there was no CISS, even Epson’s printers would be in trouble in terms of sales. Therefore, the purposes of Epson are obvious: on the one hand,
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the various technical upgraded printers and inkjet cartridges are used to protect its present inkjet market share, create a relatively messy environment for inkjet cartridges by introducing numerous cartridges to different machines. ▲ Jarek Yang Epson also increases the difficulty for aftermarket to develop CISS products. On the other hand, products including L100 and L200 are used to resist the compatible products just as what they did to deal with CISS products: firstly, claim CISS products as being harmful to printers and void warranty if consumers use any CISS products; secondly, manufacture products to replace CISS products and fight for market share with CISS products; thirdly, cut the price of inkjet cartridges so that more customer will choose Epson cartridges or CISS-like products instead of compatible products. The fact is, Epson claims the CISS and other compatible consumables are bad for printers while developing products such as the as CISS at the same time with sales promotion. However, Epson’s movements prove the compatibles’ competitiveness from another perspective. Epson’s various types of printers and cartridges the in Asian market indicate its preparation to embark on full competition against compatibles and those products are just experimental articles as well as smoke bombs. Epson is not only attempting to enlarge its inkjet printer market in Asia but also to seize the laser printer market. As a result of Epson’s price and quality advantageous inkjet products, CISS will face with a rigorous future and more types of printers and inkjet cartridges will appear. Therefore, aftermarket players can still enjoy growth and opportunities. Yet, the market will never stop moving and at least one or two popular printers will emerge. Disclaimer: This article represents opinions of the author, not necessarily of this publication.
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Recycling Times Magazine
Legal Issues
China’s new patent law – influence and interpretation (part two) By Kan Zu, Unitalen Attorneys at Law
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Design patent The new patent law and its interpretation would influence design patent infringement litigations on several aspects. These are outlined below. Under the new patent law, without the authorization from the patentee, offering for sale of the products protected
against the infringement by offering for sale until the new patent law added the offering for sale as an infringement of a design patent. Like the invention patent and utility model, determining the protection scope of a design patent is a critical issue. The new patent law emphasizes that the brief description is
by the design patent would constitute a design patent infringement. “Offering for sale” refers to those actions, such as advertisements, window-displays or exhibitions at a trade fair and so on. where the infringer has intention to sell the infringing products. In practice, a lot of designs are copied by the infringers and in some situations the patentees are not able to obtain the evidence to file a lawsuit against the infringers, i.e., the infringer does not have store but only sells the infringing products online or the infringer exports the products outside China and has products advertised on the website but does not sell the products in China, or the infringer shows the infringing products at a trade fair to try to build up potential sales. In such circumstances, normally the patentee has had difficulty getting the infringing products, and the enforcement authorities, courts or government agencies, had a different attitude to the offering for sale of products protected under design patent. In practice, most courts have not accepted these cases as infringement but some government authorities might take action to protect the patentee. However, even among those government authorities, they have had discretion on determination whether they should take action to protect the design on a case by case basis. It is not reliable for the patentee to secure the rights based on design patents
important to determine the protection scope of the design patent as the description of an invention patent or utility model, and an applicant must submit the brief description to describe the novelty of the design and some features which are not easily to be showed on the drawings or pictures when filing a design application. In finding design patent infringement, the interpretation provides some detailed rules on determination of infringement of design patent that using the identical or similar design on identical or similar products constitutes design patent infringement and explains that the court shall find identical or similar products according to the use of the products. At the end of 2003, in Wuliangye Group vs. Kwei Chow Moutai Co., Ltd. (“Moutai”) the Sichuan Intellectual Property Office found that the bottle of one of Moutai’s wines was similar to the design patent 02302648.0 (the “‘648 design”) which was assigned to Wuliangye Group. The Sichuan Intellectual Property Office found that the Moutai’s wine bottle, shaped like a panda holding a bamboo, was only slightly different from the ‘648 design in terms of the positioning of the bamboo. Without the brief description of ‘648 design to indicate the use of design even the design looked like as a handicraft article for ornamentation or decoration but we might suppose that it could be used as a
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Legal Issues
container of wine as the name of the design was glass bottle by enlarging the size. The Sichuan Intellectual Property Office concluded therefore that the accused wine bottle had taken the same idea – with the similar design, shape and decoration – and would cause consumers confusion and that the accused product constituted design patent infringement. In this case, we disagree with the conclusion of the Sichuan Intellectual Property Office who had found that the design was used for ornamentation and decoration, which is completely different from the function of wine bottle, but they made an unrealistic hypothetical conclusion that the design could be used as a container for alcohol to extend the scope of protection of ‘648 design in another product area. In the interpretation, the Supreme Court has explicitly stated that “the court shall determine the identical and similar product according to the use of the design.” Under the new patent and its interpretation, we would have much clearer rules to determine the identical or similar product. The interpretation further reiterates that criterion of “identical or similar design” shall be looked at in terms of the knowledge and capability of a typical consumer, and a comprehensive determination based on overall visible effects of the design and features of the accused product. In Neoplan Bus GmbH (“Neoplan”) vs. Zhong Wei Bus Co., Ltd. (“Zhong Wei”), Neoplan accused that four types of buses manufactured by Zhong Wei infringed the Chinese design patent No. 200430088722.4 (“the ‘722 design patent”) owned by Neoplan. Beijing’s first Intermediate Court found that both the ‘722 design patent and the accused products had wedgeshaped upper and lower front screens, tilted front lights, a wedge-shaped front part of the bus relevant to tilted front lights, side windows ranging back to the bus, a horizontal stretched depression line on the side of the bus, trapezoid rear windows, a hexagon engine bonnet, triangular rear lights, a radiator grille offset from the middle of the rear, and a wheel shroud covering a part of the wheels. The court also found that the accused products had some difference from the ‘722 design patent in terms of the direction signal lights, windscreen wipers, positions of plates, places of exits, frames of rear windows, air inlet holes of engine bonnet, positioning of air-conditioning etc. The court was of the opinion that the identical design between the ‘722 design patent and the accused products constituted the overall view of the buses, and even though the difference was found, the difference was minor and imperceptible in part that the difference was not able to have distinct effective on the overall design of the
buses. In early 2009, the court concluded that the accused products and ‘722 design patent were similar designs and the accused products infringed the ‘722 design patent. Even though the judgment was made before the interpretation was issued, the court has followed the basic criteria in determining similar design, overall visual effects. The interpretation rules that the court shall determine the designs are identical if the accused design and design patent demonstrate no difference in terms of overall visual view, and the designs are similar if there is no substantial difference in overall visual view. This case is on appeal and we shall be waiting for the opinions from appeal court for further interpretation. Moreover, the interpretation introduces the term “distinctive design features” which is different from the “key elements of the design” that has been in practice for years. The Supreme Court considers that it might be much clearer to decide the image of the overall visual effect by using the distinctive design features, that is to say, the features of the design patent as distinctive from the prior designs. So far we have not seen any infringement cases under the distinctive design features test, but we suppose the Supreme Court would like to limit the judges’ discretion on key elements of the design test, because the key elements of the design is unclear term and no standards exist to define “the key elements”. So a judge would have a broad discretion on the interpretation of the key elements. By introducing “distinctive features” as a standard of identical and similar, both parties in the suit and the judge would be much clearer in infringement issues although the “distinctive features” would heavily depend on the evidence submitted by both plaintiff and defendant. www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
Tech Zone
Remanufacturing the Canon imageCLASS D1120 type 120 2055 toner cartridge By Mike Josiah and the Technical Staff at Uninet Imaging First introduced in February 2010, the D1120 series of laser printers is based on 30ppm, 1200dpi Canon engine that has a first page out in less than 8 seconds. There is just a single cartridge version for these machines, rated for 5,000 pages. The cartridges are similar in design to the HP P2035 cartridges, but are not interchangeable. They also use the new drum drive gear system. The actual drive gear is a floating type that uses a ball and socket configuration. There are no screws used at all to hold the cartridge together. All the end caps and bushings are held in place
by plastic welds. This sounds worse than it is though it’s actually not that bad to do. The pin system holding the two halves of the cartridge together is similar to many HP machines. You will need to cut two small holes cut in the top to get access to the pins. The
pin access hole location on these cartridges is almost identical and the same methods you use for the P2035 should work here. The printers released in this series so far are as follows: imageCLASS D1120 imageCLASS D1150 imageCLASS D1170 imageCLASS D1180 Cartridge troubleshooting as well as running test pages, cleaning pages and some simple printer troubleshooting will be covered at the end of this article.
Supplies required • D1120 toner for the Type 120 cartridge (5000 pages)
• Replacement chip
• New drum (optional)
• Wiper Blade
• Wiper blade (optional)
• Dr. Blade (optional)
• Magnetic roller (optional)
• Sealing strip (optional)
• Cotton swabs
• Isopropyl alcohol
• Drum padding powder
• Phillips head screw driver
• Small common screw driver
• 3/32 drill bit
• X-Acto knife with square chisel type blade (See Figure 22)
• Flush cutting wire cutters
• Hot Glue gun
• Dremel type tool with side grinding bit
• Small#4 ¼” long self tapping screws
• Jeweler’s screwdriver
1
step >
Remove the drum cover by prying up on each end. Note the spring position so that it can be replaced later.
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April 2011 | www.recyclingtimes.com.cn
step >
Tools Required
a
b
c
d
6
Drill a shallow hole on each side of the cartridge as indicated. See Figures a b c&d
Recycling Times Magazine
step >
6
Remove the PCR and clean with your standard PCR cleaner.
step >
7
Clean out the waste toner.
step >
Tech Zone
7
Coat the wiper blade with your preferred lubricant. Install the blade and 2 screws.
1
step >
Push the pins out with a jeweler’s screwdriver. With the hole in this location by just pushing the screwdriver in, the pins will be pushed out. Remove the pins.
Remove the 2 screws and the Wiper Blade.
3
2
Separate the two halves.
5
Remove the drum. This is a good time to look at the new drive gear(s). This is a completely new system. New drums and gears are being developed.
step >
step >
step >
There is a small shoulder visible that the screwdriver should be pressed against. Make sure not to bend or damage the plastic wall and the plastic is thin and easily damaged. Remove the Axle pin from the outside with flush cutting wire cutters.
8
step >
Re-install the cleaned PCR. Note that a new OEM PCR has a small amount of conductive grease on the black (contact) side.
step >
With a flat head screwdriver, press the drum axle pin out from the inside of the cartridge wall as shown.
8
Re-Install the OPC Drum and metal axle pin. The metal axle pin should have a small amount of conductive grease on the tip.
step >
The drum hub on the opposite side is welded. The weld can be broken or drilled out, but there is a good chance that the hub will either warp if pried off, or will be hard to align if drilled out.
step >
2
5
www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
step >
Tech Zone
16
Remove the doctor blade and two screws.
13
step >
Using the 3/32” drill bit, drill out each of the two welds. Be careful to keep the drill straight as you drill in. Use a slow speed and only drill in no more than ¼”.
9
step >
Remove the old grease and replace before inserting the pin. Make sure the axle pin is fully inserted.
16
step >
Clean out any remaining toner from the hopper. Note the Dr. Blade seal. It is a sticky substance that can be clean with alcohol if toner gets on it.
13
step >
Remove the magnetic roller assembly.
13
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April 2011 | www.recyclingtimes.com.cn
13
place.
Remove the Magnetic roller drive gear. The end cap will keep the bushing in
16
If you are going to seal the cartridge, there is a white plastic shelf that needs to be removed. The shelf is held on with double sided tape. It can be gently pried off with a small screwdriver.
step > step >
Slice the two tabs off each location as shown on the left (Seal) end cap. Use a square blade X-Acto knife to slice off the tabs. NOTE: Both the end caps are plastic welded in place. The only way to open them up is to cut the welds and carefully drill them out. We have found the left (Non-Gear) side is the best side to do this on.
step >
13
16
If you’re not going to use a seal, fill through the Mag. roller opening with D1120 toner. There is not a fill plug in these cartridges.
step >
step >
With a flat head screwdriver work the edge of the blade around the edge of the end cap and gently pry up the end cap. You will hear the remaining parts of the welds break free. The top weld will also break off now. Take your time with this.
Recycling Times Magazine
step >
Tech Zone
22
Re-install the doctor Blade and two screws.
26
step >
step >
Install the end cap, align the keyed magnet into the keyed slot on the gear side first, this will help in aligning the opposite end cap.
22
grease.
Clean the old grease off the contact plate, and replace with new conductive
26
step >
Install 2 small screws into the holes previously drilled out. In our tests, the two screws will hold the end cap on with no problems.
20
step >
22
Re-assemble the toner hopper section. Place the Mag. Roller drive gear in place, install the magnetic roller assembly. Turn the roller until the keyed end fits into the drive gear properly.
26
Place the two halves together, make sure that the two springs are aligned, and insert the two pins.
step >
16
Re-install the white plastic shelf. If the adhesive is not working, replace it with a good double sided tape. This shelf helps with the flow of toner in the hopper.
step >
step >
Install the seal onto the cleaned rails. Make sure the seal tab is set over the non gear side of the cartridge. Remove the white toner port seal, and insert the seal tab is through the port opening. Install the white port seal on top of the seal.
www.recyclingtimes.com.cn | April 2011
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Recycling Times Magazine
Tech Zone
step >
29
Install the drum cover; make sure the spring is situated correctly.
30
To replace the chip. Cut the top melted plastics off the chip rails to remove the chip. Install the new chip. If the chip is loose, place a small dab of glue from a hot glue gun onto each corner.
step > step >
28
Make sure that the pins are slightly pushed in so that they do not interfere with installing the cartridge in the printer.
Repetitive defect chart: OPC drum
75mm
Lower fuser roller
63mm
Upper fuser film
57mm
Registration roller
43mm
Magnetic roller
42mm
Transfer roller
39mm
PCR
38mm
Running Test pages These machines are all MFP’s and it is best just to make a copy of a suitable test page. Mike Josiah Mike Josiah is the East Coast Technical Director at Uninet Imaging. A global distributor of toner, OPC drums, wiper blades and other supplies. An industry veteran since 1987, Mike is a member of ASTM committee F.05, the STMC Technician Certification Committee as well as an STMC trainer. He regularly contributes articles and teaches seminars at association meetings and trade shows.
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