Recycling Times Magazine
RecyclingTimes The magazine by the industry, for the industry.
Publisher & Managing Director Tony Lee Directors David Gibbons Sabrina Lo Senior Consulting Editor Art Diamond Editorial Team Doris Huang Doris.Huang@iRecyclingTimes.com Virginia Ruan, Jane Yu, Keon Huang, Wendy Lee Graphic Designers Miracle Wei, Kevin Deng Sales Team Anna Liang Anna.Liang@iRecyclingTimes.com Kevin Zhu, Sally He, Tobee Deng Marketing Team Jessica Yin Jessica.Yin@iRecyclingTimes.com Tracy Zhang Operations Team Charles Lee Charles.Lee@iRecyclingTimes.com Betty Lee, Joy He, Sunny Zhang Regional Offices 6B Xinhai Commercial Building, 104 Yuanlin Road, Jida, Zhuhai 519000, China Tel: +86 (0)756 3220716 / 3919266 Fax: +86 (0)756 3959299 24 Ardley Ave Kellyville, NSW, Australia 530 West Ojai Ave., Suite 108 Ojai, CA 93023-2471, USA Email: info@iRecyclingTimes.com Website: www.iRecyclingTimes.com
Front Cover Kathy Tripp: Art Diamond
Columnists
RecyclingTimes
David Gibbons Art Diamond Steve Weedon Charles Brewer
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March 2013
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Mike Josiah
Tony Lee
editorial
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Three aftermarket print consumables exhibitions have been called off out of the blue—the nearly-20-year-old World Expo, the ReIndia Expo and the RechargEast CIS Expo. The cancelation of the latter two industrial events is a temporary thing while that of World Expo will be permanent. For years, World Expo has been the aftermarket document printing industry's premier gathering spot. It has positively promoted the healthy development of global printing aftermarket and was a model for Europe’s RemanExpo, America’s ITEX Expo, China’s RemaxAsia Expo, Brazil’s Reciclamais Expo among many others. Some say, the lack of innovation of those exhibitions is the major reason of failure. Though sad news, their demise leave us with some things to think about. Firstly, the number of industry players has been shrinking in the past few years. In the USA alone, the number of remanufacturers has diminished from 7,000 to less than 1,000. Secondly, after 20 years’ rapid development, the industry is now witnessing flat growth because of the fixed market landscape, stable sales channels and few new market participants. Thirdly, OEMs have advanced the technology and performance of printer consumables. And they have initiated fierce litigation to protect their patents and intellectual property rights. All these have hindered people’s willingness to join the market. The news is a sharp warning for us—we need to change, to survive! In our recent strategy planning meetings, we defined 2013 as the "Year of Innovation" out of strategic concern. Last year, Recycling Times Media explored new possibilities in the industry to meet new needs or old customer and market needs in a value adding way. We succeeded. Our new iPrint Expo is one example. It made us realize that innovation endows resources with a capacity to create wealth. It’s an essential instrument of entrepreneurship. Recycling Times has been publishing news about the print consumable industries ever since 2007. We've witnessed many peaks and troughs. The landscape of the industry has changed tremendously: many traditional "Mum and Pop" operations have gone, acquired or merged by bigger players. For those who continue to survive, innovation is the Elixir of Life. We, deeply realize the importance of innovation, and must take more initiative to innovate our business portfolio as well. Starting from next edition, we will present to you an industry magazine with a fresh look and informative content. There will be more juicy news, more industry voices, more market analysis, more readable layout. Globally, manufacturing is still in a slump as the overall economy picks up very slowly. Many companies are still desperate because of the dismal environment. I used to talk a lot about changing the way we manage business or develop new technology so as to survive and win, but how about applying some innovative initiatives in marketing, channel distribution and other business operations? I wonder how many companies have realized the importance of social media (e.g. Twitter, Facebook, etc.). More and more companies use it to foster brand awareness and often, improved customer service. How can we make good use of social media to approach our potential customers, to learn their needs? That is just one of many ways we can be more innovative. I believe you can think of more.
Tony Lee Publisher & Managing Director
All rights reserved. © 2013 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
Color vs Monochrome Toners Let’s talk toner. Better yet, let’s compare toners, color versus monochrome, so that we can better understand how these amazing powders have revolutionized the entire imaging industry.
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Supplies Counterfeiting Gathers Worldwide Attention While counterfeiting is not a new problem, printer vendors are constantly monitoring new ways and activities that will have impact on reducing this problem.
Just a Minute
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It’s Just Not Right 21
Color Imaging Capitalizes on Color Copier Cartridges
Money From Home
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What is most surprising about the Color Imaging toner plant in Norcross, Georgia is their focus on color copier cartridges and toners. Let’s hear the wisdom in that strategy.
Building Directories
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Industry Updates Black Point Declines Settlement with HP
09 PR China Sets Mandatory Policy to Purchase Aftermarket Consumables
ILG Overcomes Difficulty Fusing Toner to Specialty Media
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Ninestar Comments on Customs Raid at Paperworld MSE Acquires Distribution Facility in the Netherlands
2013: New Venue, New Features 13 ITEX Junction Launches India’s First Online Cartridge Store 14 Cartridge Lexmark Wants Court to Reconsider SCC Ruling
OEM News BLI Selects 13 Outstanding Printers
39 Google Finds 86000 HP Printers Open to Hack Officejet Pro X Color Inkjet Printer Rivals the Speed of 41 HP Laser HP and Lexmark Fight for Office Market HP India Attacks Cartridge Aftermarket
42 US Mobile Printer Market to Explode
Cartridge-Free MFP to Eliminate 90% Waste
ISC to Help Execute Cartridge Exclusion Orders
105 Epson’s Printer Models Support Apple AirPrint
Sun Chemical Reports on Eco-Effciency and Sustainability
OEMs Rush to Qualify Under New EPEAT Standard
15 EFI Wins Again in Kerajet Patent Suit
Posts Bleak 2012 Results 43 Canon Lexmark’s Losses Continued in 2012 Epson Earnings Declined Despite Price Hikes
Features Color vs Monochrome Toners
17 Supplies Counterfeiting Gathers Worldwide Attention 21 Directory
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EMPTY CARTRIDGE BROKERS
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A Canon GEO May Not Mean the End of the World
People 5 QUESTIONS:
47 My Reaction to Pantum's Award by BLI Profiles
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Actionable Insights
Color Imaging Capitalizes on Color Copier Cartridges
Tech Zone Remanufacturing the HP LaserJet Pro 400 M401/MFP M425
48 CF-280A/X toner cartridge
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Just a Minute David Gibbons
It’s Just Not Right This industry has a very jaundiced view of printer cartridges remanufactured in China. After 30 years, the prevailing politics continues to prevent a really great global aftermarket industry from gaining better acceptance by consumers, media and governments. And also the OEMs! Now I find at least two industry trade associations are banning companies from joining them, simply because they are Chinese! I was honored to sit with the CEO of a Chinese cartridge remanufacturing company— at the head table — during their recent celebrations. I was told the company is not the biggest remanufacturer in China, but their quality, remanufactured cartridges are successfully exported to many loyal distributors in western countries. They do not make cloned compatibles. They also hold patents to ensure their own remanufactured products will not infringe the intellectual property of the OEMs.
If this company existed in a western country, it would be applauded! Chinese-made, cloned cartridges—openly copied from OEMs—continue to be a threat to their business. It was explained to me this way: Chinese-made, cloned cartridges are: • priced to be more competitive than remanufactured cartridges, and threaten to undermine the existence of a legitimate, permissible repair industry in China; • causing ill will and suspicion to be extended to any, and all, Chinese companies involved in remanufacturing—legitimate, or otherwise. The cheaper cloned cartridges are gaining a bad reputation in many international countries because they disrespect intellectual property as well as the environment—they are usually poorer in quality, cannot be reused, and end up going to landfill. But now there is prejudice
over the quality of every printer cartridge that comes from China. To make things tougher, if that were possible, any application to join an industry trade association—which openly welcome remanufacturers from other international countries and regions—is rejected, simply because the applicant is Chinese. Maybe it is because they want to reject the flow of any and all cartridges coming from China. Maybe it is because existing members would revolt. Politics in any case! In my view, the excellent work being done by our trade associations could only be strengthened if they had the support from these innovative, honest Chinese-based remanufacturing companies. They could work together to battle the clones, and rid our industry of the poor international reputation caused by them.
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Money From Home Art Diamond
Building Directories As 2012 came to a close, Recycling Times Media Corp. took on the task of compiling Directories for the many products and services that constitute the cartridge remanufacturing industry. The list of bona fide manufacturers and primary sources of goods and services is long. It includes color toners, blades, monochrome toners, smart chips, ink jet inks, core brokers, primary charge rollers, developer materials, pigments, dyes and colorants, trade associations, print testing labs and photoreceptors. We knew from the start that this would require a Herculean effort, but was it warranted? Will these Directories contribute to the strength and growth of our industry? The answer: Absolutely! In my opinion, the work product will prove an invaluable resource and reference for every recharger, attorney, consultant and vendor engaged in this field, for several good reasons: First, dealing directly with the source will reduce costs and increase margins for the reman community, provided the ordering volume and credit standing of the Buyer meet the requirements of the vendor contacted. Second, the listing will likely provide alternative source options, a choice that enables competitive bidding, comparison shopping and,
likely, a wider range of products and services available to the Buyer. Third, by identifying the right contact person in each listing, the Directory will save time in correspondence with each and every vendor. It eliminates time wasted in searching for the right individual in the right office and requesting contact information (telephone number, email address) which is often withheld from a cold caller. Fourth, for those companies listed the Director y offers free exposure to ever y subscriber, reader and viewer of Recycling Times’ monthly magazine. That number most probably lies between 15,000 and 20,000 individuals at locations around the world. In other words, vendors will be motivated to be included for the free advertising they will receive in one of the foremost periodicals leading and serving the cartridge remanufacturing industry. Fifth, for every category, subscribers and viewers will have the benefit of seeing most, if not all of their competition. This advantage will prove useful in creating their business plans and future strategies. Each Directory will be updated every year it appears to include any omissions and make any changes that listed companies might submit. The industry is a growing, expanding, morphing body. What with new entrants, mergers and acquisitions, additional research and feedback in the months ahead will enable us to keep each Directory current. Updating each category annually will ensure our readers access to the best compilations, and the most accurate references, year after year. Once completed, these Directories will not only define our industry, but bring its players together into a tighter group, united in purpose. www.iRecyclingTimes.com
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Industry Updates
Black Point Declines Settlement with HP Polish aftermarket player Black Point S.A., a producer of printing supplies, refuses to settle with HP who claims the company is violating one of its ink cartridge patents. HP initiated a legal action against producers of replacement ink jet ink cartridges in Poland a couple of months ago, a move that mirrors legal actions taken by the company in Spain last year. “The development and taking to market of innovating products is the core business of HP,” the company said in a statement. “We have to take legal steps to defend our original technology.” HP claims alternative replacement cartridges made by the companies violate one of its patents covering loading cartridges into printers. Action S.A. and AB S.A, two other Polish aftermarket players have settled with the OEM over the same accusation. Both companies agreed to stop doing any business involved with the alleged patent-infringing products,
and will discard any related products in storage. Black Point, on the other hand, has decided to take on the legal battle. The remanufacturer rejects the OEM’s offer to settle, saying they haven’t done anything illegal. “Our company neither distributes nor holds in storage products that violate patent law held by printer manufacturers,” said Piotr Kolbusz, CEO of Black Point, in a statement on the Black Point website. “This has been confirmed by the local bailiff who was accompanied by an HP representative in June 2012. We will reject the accusations of HP during the ongoing process.” As the case develops, HP will now have to take Black Point to court. Industry experts wonder whether an aftermarket player can win a court battle against an OEM after a dismal year in 2012.
PR China Sets Mandatory Policy to Purchase Aftermarket Consumables The Chinese government has released new print consumables purchase regulations, setting aftermarket products as the primary option. The ruling was made from its official website by the Procurement Center of the Central Government Institution of the People’s Republic of China. It is expected that the move would help the Chinese government reduce operating costs while lending more support to its consumables industry. According to the statement, aftermarket consumables will be officially introduced to the 2013 government procurement bidding instructions. It also emphasizes that the government must take aftermarket
consumables as the primary purchase option instead of the OEM products, unless the aftermarket products fail to meet performance requirements. China is currently the world’s largest print consumables manufacturing base, with the city of Zhuhai recognized as the world’s capital of that industry.
ILG Overcomes Difficulty Fusing Toner to Specialty Media The International Laser Group (ILG), based in Woodland Hills, CA, has added its new and improved Fusion Plus technology to the CE390A Jumbo cartridge in ILG’s high speed OEM compatible line. According to ILG, the technology is designed to overcome the difficulty in properly fusing HP toners to various types of specialty media. Among these substrates are labels, envelopes, coated and glossy paper stocks. Aftermarket players have found that most toners fail to meet the quality expectations of the end user as there are often adhesion problems with coated and specialty papers. The Fusion Plus system employs innovative technology and was introduced by ILG to solve this adhesion problem. The technology eliminates character, graphics and bar code voids, uneven coverage and smudging. In addition, it extends printer fuser life and significantly reduces necessary cleaning of printers, saving end-user printer maintenance costs. ILG now offers a complete product line including the CC364A, CC364AJ, CC364X, CC364XX as well as CE390A, the new CE390AJ, CE390X, and CE390XX OEM compatible cartridges that use the Fusion Plus technology.
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Industry Updates
Ninestar Comments on Customs Raid at Paperworld Printer cartridge remanufacturing giant, Ninestar says there has been a 'beat-up' in the industry press over questions being asked of them by German authorities. And they will not take it lying down. Ninestar has released a statement explaining the inspection by German customs officials on its booth at the Paperworld expo in Germany. According to The Recycler, "The officers removed a number of cartridges from the booth in a cart, after checking a list against the company’s products on display and stored on the booth." However, Ninestar says the report is misleading. "There was only one sample label cassette (RB-DY 45013) taken by German customs. It is a newly introduced product, and has not yet been released to the market. Ninestar’s patent team is confident the product does not infringe any patents, and is consulting with its German legal counsel as to how to respond with the authorities." Laura Fan, Senior Marketing Supervisor at Ninestar, told Recycling Times, "The incident
had no impact on our customers visiting the booth. We had a successful exhibition in Germany." As a leading industry player, Ninestar say they are not surprised at the publicity they received at the 2013 Paperworld exhibition, but they will take a stand against malicious gossip and slander. “We reserve the right to seek sanctions, and pursue any action available to us under
applicable laws, against any or all who circulate untruths about us.” Ninestar says it will not flee any responsibilities or obligations made upon them, but will also "do whatever it needs to do to protect its own and its customers’ legitimate interests". Know more, please visit: http://www.ggimage. com/news/news_info_379.html
MSE Acquires Distribution Facility in the Netherlands Micro Solutions Enterprises (MSE) EMEA, a global leader in high quality remanufactured printer cartridges, has recently purchased a distribution facility in the Netherlands, with a 480- square meter office space and a 1,000square meter warehouse. The facility is near Schiphol Airport, one of Europe’s major air cargo hubs and one of the busiest passenger airports in Europe. As was claimed by Oded Yakobowitz, Director of Operations at MSE, EMEA, the company has been growing steadily for 6 years and owning the facility gives them greater scope and greater flexibility for expansion, allowing the increase in inventory and further efficiencies at their main logistics platform in The Netherlands. And Yoel Wazana, President of MSE said that
Netherlands’ strategic central location gives MSE a significant advantage in serving the world’s largest consumer and industrial market, and doing it cost efficiently. The location seizes a favored position as the centre of Germany, the
UK and France, the three largest economies in Europe, and is within a 400-mile radius of half of Europe’s major markets. MSE is look forward to being able to offer their high-quality Intelligently Re-Engineered products with greater efficiency.
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Industry Updates
ITEX 2013: New Venue, New Features ITEX National Expo & Conference has announced new venue and features for its 2013 event. In addition to relocating the show to Rio All Suites Hotel & Casino, adding new sponsors and dozens of new exhibitors, the producers have allocated new technology zones on the Expo Floor and expanded industry partnerships. ITEX 2013 will take place at The Rio Las Vegas Hotel & Casino from April 17-18, 2013, with PreConference Workshops held on April 16, 2013. “ITEX showcases all aspects of the evolving office market and the growing influence of IT services as will be evident in our education program and technology zones on the Expo Floor showcasing the latest products and services for Managed Services and Document Management and Workflow Solutions,” said Wendy Loew, Event Director, Questex Media Group, producers of the Show. “The Show Floor will offer hundreds of best in class exhibitors including dozens of industry leading companies
who will be exhibiting for the first time. We invite past attendees and those new to the industry to register today.” One of the features on the Expo Floor is the Managed Services Zone, which will feature ITEX’s Diamond Sponsor, Continuum, as well as ConnectWise, LabTech Software, N-able Technologies and Tigerpaw Software.
The other Technology Zone on the show floor will focus on Document Management and Workflow Solutions. Zone sponsor, Fierce Content Management, will be joined by several companies, including Cima Software, DocuWare, Kodak Document Imaging, Nuance Communications, PSIGEN Sof tware and WebbStone.
Complementing this area is the education track Automate, focused on document management and workflow solutions. Power Hour sessions in this year’s program include: Utilizing CRM and ECM Integrated Technology as a Sales Tool and Profit Center On-Premise and Cloud: Best Market Strategies for Document Management Case Study: Process Trumps Paper: How Ventura County Automates to Digital Services The Show floor will feature several new exhibiting companies including Breezy, Continuum, Cima Software, Fellowes, Innovolt, Imaging Products Manufacturing (IPM), Kodak Document Imaging, Kuroki Industrial Co. Ltd., Laser Line, Nuance Communications, PHSI, PNC Equipment Finance, Static Control Components, Tigerpaw Software, as well as Crexendo, a telecom hosted services provider. To learn more about the show, please visit: www.itexshow.com.
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Industry Updates
Lexmark Wants Court to Reconsider SCC Ruling Cartridge Junction Launches India’s First Online Cartridge Store In a move to expand its business, Cartridge Junction, an Indian remanufacturer, announced the launch of India’s first online cartridge store. The eCommerce retailer offers a variety of remanufactured toner cartridges, with both color and MICR cartridges included. Cartridges compatible with all major OEM brands are available at a discount of 40% to 50%. As promised by Cartridge Junction, shipments can be delivered anywhere in India within 5 days after the order is placed. The company also helps costumers trace availability of a particular cartridge if it cannot be found on its website. Moreover, Cartridge Junction will reduce delivery fees for customers placing substantial orders and offers accounts for NGOs, schools and colleges. Cartridge Junction expects that printers and printing accessories will also be sold on its website. It is currently manufacturing products using imported parts and toners at its hi-tech facility in Mumbai. In addition to the online store, Cartridge Junction undertakes cartridge refilling in a number of cities across India including: Mumbai, Pune and Delhi, as well as supplying cartridges in over 1,500 locations across India The company also states that it has “pioneered” MPS in India and is now serving customers requiring high volume print making.
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The long-running battle between Lexmark and Static Control Components (SCC) continues. In August 2012, the 6th Circuit Court of Appeals declared another ruling that favors SCC. According to the court, Lexmark’s false advertising of SCC products is illegal. The OEM, however, has never accepted this judgment. In January 2013, it again appealed,
urging the court to reconsider its ruling. Lexmark asserts that SCC doesn’t have the right to make false advertising claims, saying only direct competitors can launch those claims. This may prove to be simply a delaying tactic as the matter has been settled and adjudicated several times in favor of SCC.
ISC to Help Execute Cartridge Exclusion Orders The Imaging Supplies Coalition (ISC), an OEM supported trade association, now offers service to help identify cartridges which are listed in ITC exclusion orders. The non-profit organization, consisting of Brother, Canon U.S.A., Epson America, HP, Lexmark, Oki, Samsung America, Toshiba America Business Solutions, and Xerox, has been helping industry people avoid counterfeit cartridges for 16 years. According to Actionable Intelligence, ISC will now extend its service to the authentication of cartridges excluded by the ITC. Patent-infringing cartridges have drawn great concern from the OEMs in recent years. Although exclusion orders are filed by the ITC to protect patented products, channels and users need more help in identifying the cartridges. ISC says it can help educate and authenticate the products as long as users send them the suspected items. The move by ISC again reveals how desperate are OEM’s in protecting their products and their markets. For aftermarket players, ISC’s expanding role is also welcome as it protects legal remanufacturers against counterfeiters and other unfair competitions.
Recycling Times Magazine
Industry Updates
Sun Chemical Reports on Eco-Effciency and Sustainability Sun Chemical Corporation (Parsippany, NJ), a leading supplier of printing inks, pigments, plastics and other imaging specialties, has released its 2012 Sustainability Report. The report highlights two major ways in which Sun Chemical is committed to environmental protection. It demonstrates eco-efficiency with specific data from approximately 170 Sun Chemical
sites in over 25 countries. Sustainability metrics measured include: energy consumption/ conservation at production and non-production sites, the energy carbon footprint at the production sites, process waste reduction, water consumption, materials safety, and employee safety. The other highlight of the report shows Sun Chemical’s dedication to monitoring its material
suppliers. Questionnaires were sent to suppliers asking about their sustainability policies, carbon footprint emissions, the potential impact on deforestation, and other pertinent issues. “Our sustainability policy pushes us as a company to improve the eco-efficiency of our processes and products,” said Mr. Gary Andrzejewski, Sun Chemical’s Corporate Vice President of Environmental Affairs.
EFI Wins Again in Kerajet Patent Suit EFI (Electronics for Imaging), a world leader in innovative digital printing solutions, has declared victory once again, in a patent infringement lawsuit filed by Kerajet regarding ink jet printing on ceramic materials. Cretaprint, a subsidiary under EFI, was accused of ceramic digital inkjet patent infringement by Kerajet in May 2011. Jose Vicente Tomás Claramonte, the President of
Kerajet, chased after EFI’s Cretaprint all through the case. But EFI rejected Kerajet’s claims and alleged its patent was invalid. The Commercial Court in Valencia, Spain agreed with EFI and dismissed the suit. Kerajet then turned to a court in the UK, but once again, EFI emerged victorious. “The court’s ruling vindicates what we have maintained all along: that Claramonte’s lawsuit
was baseless and that his patent is invalid,” said EFI’s General Counsel, Bryan Ko, “We will not tolerate meritless claims being filed against us, and we will vigorously defend ourselves and our intellectual property rights.”
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Features
Color vs Monochrome Toners Art Diamond, Senior Consulting Editor Let’s talk toner. Better yet, let’s compare toners, color versus monochrome, so that we can better understand how these amazing powders have revolutionized the entire imaging industry. In order to gain that perspective, let’s characterize this consumable from the various perceptions of those who control its manufacture, marketing and end use. Profit Margin To the toner plant’s chief financial officer, the difference between color and monochrome toners lies in profit margins. For monochrome black toners, margins are increasingly slimmer as the unit cost of key raw materials is constantly rising and the unit selling price, ex-factory, is continually shrinking. The loss in margin is driven by fierce competition with an estimated 60 or more toner plants serving world markets. Indeed, slim margins have driven some producers to focus on upscale specialties, such as MICR (magnetic ink character recognition)
toners, ceramic tile decorating toners, and other unique products. It has also driven other producers to shutter their plants. There is some shrinkage in the selling price for process color toners (cyan, magenta, yellow and black), but the margins remain quite large, depending upon the machine model and quantity ordered in bulk, bottle or filled cartridge quantities. The term “process color” sometimes referred to as “halftone color,” applies to a blend of the subtractive primaries that achieves a certain hue and is essential for
the reproduction of color photographic images. Spot color (variously called, “comic strip color”, or “monochrome color”), is used in proprietary logos or brand graphics to identify a certain enterprise or product line. There is no blending, simply a single color ink or specialty toner, such as in Kodak’s distinctive yellow box, or CocaCola’s brilliant red labels. Specialty Toners One major exception regarding monochrome black toner is the MICR products. These www.iRecyclingTimes.com
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Features are monochrome toners which command a significantly higher margin than basic monochrome toners for printers and copiers. Justifying the swollen price is an extensive test protocol involving a battery of magnetic signal readings and image rub resistance evaluations. The cost of these tests and of the high ticket instruments needed to run them, also enter into the price calculation. To the plant’s chief chemist, the difference between color and monochrome toners lies in the pigments being used and the formulation adjustments necessary to modify the base (unpigmented) toner so that the triboelectric charge acceptance and polarity of all colors are consistent with the printer or copier specifications. Another challenge to the toner chemist formulating an aftermarket product is to ensure that the resultant toner can be added to the copier or printer on top of any OEM toner that might be resident in the device. Called “compatibility, this seamless addition should
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not cause any perturbation in image quality or sensible color change. The Color Challenge To t h e u l t i m a t e c o n s u m e r , t h e machine operator, a monochrome toner requires a modest amount of skill in the electrophotographic process in order to achieve the best image quality and the maximum page yield for each pound of toner consumed. Color toners, on the other hand, require a more sophisticated knowledge of the subtractive primaries (C,M,Y,K) and how they combine to produce the highest gamut possible with the imaging equipment on hand. To the dealers and distributors of color toner powders, the road shows and webinar tutorials being offered by Static Control, Uninet and other suppliers have been a godsend to the aftermarket industry. They provide a rare opportunity for sales and marketing personnel to get up to speed on the jargon, the lexicon and the technology of digital color printing.
The Bottom Line To those print shops and printing departments whose business it is to satisfy their demanding customers, years of experience have drummed into them one overarching precept: The client pays off on the print! That is the bottom line. Clients care less about the nature of the paper or toner used or the specific machine setting involved in the process of making it. What concerns them primarily (apart from cost per page) is the quality of the image, that is: sharpness (acuity), resolution, density, color balance, fade resistance and durability. That places quality control squarely on the shoulders of the machine operators. Thankfully, responsible color toner vendors are backing up these individuals with an ongoing stream of tutorials and technical support. Experience has taught us that teamwork between vendor and consumer is the solution to dealing with full color imaging. It’s a complex technical challenge that is being met by the leading suppliers of these miracle powders.
Recycling Times Magazine
Research
Supplies Counterfeiting Gathers Worldwide Attention InfoTrends Inc. Counterfeit supplies are sold at, or slightly below, OEM prices to be confused with genuine OEM supplies. Usually, however, the product is of poor quality and clearly not the product from the OEM. Issues from counterfeit products can range from poor equipment performance; low supply yields; inferior print quality; and leakage, which can damage the printer. Counterfeit cartridges can be remanufactured or clone cartridges sold as new. www.iRecyclingTimes.com
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Research There are several signs that indicate a printer supply is counterfeit: • Poor or inconsistent quality • Sub-standard and illegible prints • Reduced page yield • Damaged packaging or packaging that looks like it has been resealed, re-glued, or re-taped. • Cartridges that fail to work • Printer damage • Environmental damage • Warranty invalidation Market Pulse Market Pulse, an annual series produced by InfoTrends, asked questions about counterfeit products. Based on the results from Market Pulse 2012: North America, counterfeit supplies appear to be a larger problem in Mexico than in the U.S. and Canada. We suspect that some share of the respondents is being led to believe that they are using OEM when they are not. User education on counterfeit could benefit the market, particularly in Mexico. See figure 1. It is interesting that nearly three-quarters of the Mexican respondents believe that counterfeit supplies are a problem for their company, where most of the respondents in the other two countries do not believe it is an issue in their markets. There could be several reasons for these results. In Canada and the U.S., education efforts by vendors and others could be reaping dividends, where users are aware of the problems of counterfeit products or have had experience with them. In addition, other patent protecting efforts by the vendors have been in place long enough to be having an impact on the amount of new build products coming into the country, which could be indirectly affecting counterfeit levels. In Mexico, it is also believed that there is counterfeit activity going on where components are being assembled in the country and then shipped to other markets. See Figure 2. Size of Problem While it is difficult to pinpoint an exact number, according to the Imaging Supplies
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Figure 1: Respondents in North America that Believe Counterfeit Supplies are Present
Source: Market Pulse 2012: North America; InfoTrends 2012
Figure 2: North American Respondents that Believe Counterfeit Presents a Problem
Source: Market Pulse 2012: North America; InfoTrends 2012 Coalition, the worldwide imaging consumables annual loss to counterfeiting is approximately 3.5% to 5% of total revenue, or between $3.5 and $4.0 billion. In the U.S., it has been estimated that 2% to 2.5% of all inkjet cartridges sold are counterfeit. In some areas and some markets, the estimate is up to 50%. Counterfeit products are a real threat to global markets and consumers. The continuous need for
supplies, easy access to empty cartridges and components, as well as access to the distribution market through the gray market and e-commerce, have attracted counterfeiters to the market. According to the International Chamber of Commerce, the estimated global market for all counterfeit merchandise is $800 billion. It is a growing problem that is expected to reach
Recycling Times Magazine
Research $1.7 trillion in three years. While it is difficult to accurately pinpoint how large the problem is, it is clear that it is a problem and brand owners need to invest in trying to stop it if they want to protect their trademark and retain customers. Customers that use any kind of consumable or supplies that turn out to be counterfeit will be difficult to win back to the original brand. Imaging Supplies Coalition (ISC) The Imaging Supplies Coalition (ISC) encourages the channel and its customers to work with the coalition to eliminate counterfeiting and fraud in the imaging supplies industry. The Coalition is now also including patent protection in their message to the market, believing that there is a connection between counterfeit and patent infringing products. The coalition recommends that supplies market participants know their supply chain by understanding their businesses practices and policies. In addition, the coalition suggests avoiding price deals that are too good to be true. The ISC also has a program that has been active since 1997 called “When in Doubt—Check it Out” ( WIDCIO), which allows a reseller or end user to send information about a suspicious product carrying the brand of its member companies to the ISC for authentication. A new enhancement to the program is that it will be able to authenticate products protected by U.S. ITC Exclusion Orders. The ISC allows the submission of physical items as well as photos and written testimonies. This will allow the ISC to process possible counterfeit items for testing at a faster rate. The ISC will forward the product to the brand owner, who will analyze the product and inform the ISC of its authenticity. The ISC will inform the participant of the product’s status. If genuine, that is the end of the process. If it is found to be counterfeit or under an exclusion order, however, the information about the counterfeiter is given to the OEM brand owner for appropriate investigation and action. The identity of the WIDCIO participant is not
revealed to the OEM and remains confidential throughout the process. The coalition believes that the program is simple but effective, leading to many seizures of products. It has resulted in the targeting of illegal production facilities and the removal of many millions of units of imaging supplies from the marketplace that are destroyed or recycled. Beyond this, the ISC also works with its member companies to educate the public about counterfeit products and how to avoid them. Since counterfeiting is a worldwide problem, the Coalition cooperates with other global associations in an effort to reduce the problem of counterfeiting worldwide.
of counterfeit products that come into the U.S. from other countries. Many brand owners mark each of their products with a unique barcode or serial number. The marking can tell the owner whether the product is counterfeit, where it was made, and other information (including where it was shipped or distributed). Historically, the CBP has not shared the barcode or serial number information of seized goods with brand owners because if those goods turn out to be gray market goods, the trade secrets of the gray marketer regarding sourcing and shipping information will be disclosed to the brand owner. Nevertheless, the brand owners want the information to determine if the
Members of the Coalition are usually OEMs, with most finding that it is effective to work together on this issue. By working together, the group can have a combined effort for lobbying, make punishments more stringent, and make laws more enforceable. OEMs that work together can share some costs and intelligence related to activities, as counterfeit operations will typically forge multiple brands to chase various market opportunities. After all, the OEMs are trying to deal with the same issue and they can have more impact by working together. Companies continue to pursue their individual strategies, but also find advantages to working with other brand owners in the coalition. Digital photo submissions can be sent to iscwebcontact@gmail.com. Written and physical submissions can be sent to:
shipment is counterfeit. As of April 24, 2012, CPB has adopted an Interim Rule that allows CBP to share this kind of information with brand owners if the importer does not provide proof of genuineness after notification of CBP’s suspicions. The Interim Rule was open for public comment until June 25, 2012 via www.regulations.gov or mail. The docket number is USCBP 2012-0011. The address is:
Imaging Supplies Coalition MBN 249 1435 E. Venice Ave. #104 Venice, FL, 34292 U.S. Customs and Border Protection (CBP) The U.S. Customs and Border Protection (CBP) often works with the International Trade Commission (ITC), especially if there has been a ruling in a complaint that results in exclusion orders, cease and desist orders, or consent orders for patent violations. Nevertheless, the CBP is also active in trying to reduce the amount
Trade and Commercial Regulations Branch Office of International Trade, Regulations, and Rulings U.S. Customs and Border Protection 799 9th Street NW (Mint Annex) Washington, DC, 20229-1179 InfoTrends’ Supplies Counterfeiting Gathers Worldwide Attention Study While counterfeiting is not a new problem, printer vendors are constantly monitoring new ways and activities that will have impact on reducing this problem. While the problem is not as pervasive in North America as in other markets, it is considered a worldwide issue. This report contains information on current activities, seizures, and recommendations on how to reduce counterfeiting. For more information about this report, visit http://www.infotrends.com/public/Content/ Multiclients/marketpulse.html www.iRecyclingTimes.com
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Directory
EMPTY CARTRIDGE BROKERS NORTH AMERICA
ACCESS COMPUTER PRODUCTS Mr. Matt Coover Email: mcoover@wm.com Tel: +1.970.612.2930 451 West 69th Street Loveland, CO, USA, 80538-119
ADVANTAGE CARTRIDGE Mr. Eric Savage, Sales Email: empties@advantage cartridge.com Tel: +1.260.747.9941 3236 Illinois Road Fort Wayne,IN, USA, 46802
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ATLANTIC GREEN TRADING (AGT) Mr. P. Tejada Email: ptejada@atlanticgreentrading.com Tel: +1.305.421.7326 6122 NW 74th Avenue Miami, FL, USA, 33166
CLICKINKS Mr. Emilio Garcia Email: emilio.garcia@clickinks.com Tel: +1.407.915.4327 107 Commerce Street. Lake Mary, FL, USA, 32746-6206
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COASTAL INKJETS, INC. Email: coastalinkjets@jahoo.com Tel: +1.818.534.2316 9800 Topanga Canyon Blvd. #203 Chatsworth, CA, USA, 91311
DUNRITE SUPPLY, INC. Bob, Recycling Manager Email: dunritesupply@yahoo.com Tel: +1.818.772.5594 20812 Plummer Street Chatsworth, CA, USA, 91311
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EMPTIES R US, INC. Email: empties@emptiesrus.com Tel: +1.519.421.5539 3685 County Road #42 Windsor, ON N9A 6J3, CANADA
ENVIRONMENTAL OFFICE SOLUTIONS Email: info@eosusa.com Tel: +1.860.291.1900 130 Prestige Park Road East Hartford, CT, USA, 06108
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For each entry, we have attached one or two letters designating each type of ink being produced in accordance with the following code: I = Ink Cartridge
T = Toner Cartridge www.iRecyclingTimes.com
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Directory ENVIRONMENTAL RECLAMATION SVCS. Mr. John Scheppner, Inkjet Product Line Manager Email: cartridges@ersusa.com Tel: +1.814.464.1800 380 East Bayfront Parkway Erie, PA, USA, 16507 I,T
FREE RECYCLING Mr. Alwin Morgenstern, President Email: Alwin@freerecycling.com Tel: +1.949.285.1310 Laguna Niguel, CA, USA, 92607.6119 I
GREENTEC USA Jim Walsh, Executive Vice President Email: khoover@greentec.com Tel: +1.519.624.3300 Buffalo, NY, USA, 14213 I,T
IMAGE CRAFT Email: alimagecraft@aol.com Tel: +1.205.833.2704 1151 Gadsden Highway Birmingham, AL 35235 T
IMAGINE RECYCLING Ms. Carlie Albano, Founder Email: Carlie@ImagineRecycling.com Tel: +1.585.872.5802 565 Blossom Road Rochester, NY, USA, 14610 I,T
LASER CONCEPTS, INC. Mr. Matt Yosha, Sales Manager Email: cores@laserconcepts.com Tel: +1.303.466.0900 6901 West 117th Ave., Unit #4 Broomfield, CO, USA, 80020 I,T
MB SALES Mr. Mike Bushman, General Manager Email: mike@mbsales.com Tel: +1.818.710.0000 7701 Alabama Avenue Canoga Park, CA, USA 91304 I,T
OFFICE PRODUCTS RECYCLING ASSOCIATES Email: sellempties@oprausa.com Tel: +1.816.584.1000 1244 Saline Street North Kansas City, MO, USA, 64116-4409 I,T
PLANET GREEN Mr. Rudy Hen Empties Division Purchasing Director Email: rudyh@pginkjets.com Tel: +1.818.725.2596 20724 Lassen Street, Chatsworth, CA, USA, 91311 I
RECYCLE TECH SOLUTIONS (RTS) Email: sales@recycletech.org Tel: +1.773.821.9700 11235 So. Cottage Grove Avenue Chicago, IL, USA, 60628 I,T
For each entry, we have attached one or two letters designating each type of ink being produced in accordance with the following code: I = Ink Cartridge
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T = Toner Cartridge
Recycling Times Magazine
Directory RIBBONS EXPRESS Mr. John Murabito, CEO Email: jpowers@ribbons-express.com Tel: +1.800.533.9949 1980 Old Cuthbert Road Cherry Hill, NJ, USA, 08034 T
TD LASER, INC. Tony Email: kat@tdlaser.com Tel: +1.877-465-2737 3280 Industry Drive Signal Hill, CA, USA, 90755 T
TONER TECHNOLOGIES, INC. Email: info@toner-tech.com Tel: +1.561.547.9710 2900 NW Commerce Park Dr #11 Boynton Beach, FL, USA, 33426 I,T
VALUECORE IMAGING SUPPLIES Mr. Chip Smith, President Email: sales@valuecore.net Tel: +1.828.328.6490 1942 Main Avenue SE, Hickory, NC, USA, 28601 I,T
EUROPE
CARTOUCHE UTILE Email: sales@cartridge-supplies.net Tel: +33.14.785.2500 18 Rue d’Arras Nanterre, FRANCE 92000 I
Collecture (Collect GmbH) Patrick Wolf, Head of Sales Department Email: patrick.wolf@collecture.com Tel: +49.151.16789652 Industriepark 1, 77955 Ettenheim, Deutschland I,T
Core Servicios Informatics S.L. Juan Manuel De Arriba, Sales Email: distribucion@grupo-core.com Tel: +34.915051673 Calle Resina 29 nave D 28021 Madrid, Spain I,T
ECO SERVICE SPz Mr. Marcin Adamski, CEO Email: madamski@ecos.com.pl Tel: +48.713.38.6823 Ul Atramentowa 5, Bielany Wroclawskie Kobierzyce, POLAND 55-040 I,T
FBO ORGANISATION S.L. Michel Turquet de Beauregard, CEO Email: nico@fbo-org.com Tel: +34.936.724.853 St. Vincents dels Horts, Barcelona, SPAIN 08620 I,T
INKCART XPRESS Email: enquiries@inkcartxpress.co.uk Tel: +44.845.257.7023 Beech House, Frizington, Cumbria, UK, CA26 3TA I,T
For each entry, we have attached one or two letters designating each type of ink being produced in accordance with the following code: I = Ink Cartridge
T = Toner Cartridge www.iRecyclingTimes.com
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Recycling Times Magazine
Directory ITP GROUP Mr. Mike Horlock, Sales Email: empties@itp-group.com Tel: +44.118.943.8001 Unit 1, Stadium Way, Tilehurst, Reading, Berkshire, UK, RG30 6BX I,T
K2 SUPPLIES, LTD. Unit 14, Kiln Lane Nonsuch Business Park Epsom, Surrey UK, KT117 1DY I,T
LVL CARTRIDGE Ms. Marie-Eve Charron, Marketing Email: hbsales@lvlcartridge.com Tel: +33.251.709.222 Parc d’activities de Tornebride, La Chevroliere, FRANCE 44118 I,T
LASER SENSE EUROPE BV Email: ersworld@cuci.nl Tel: +31.43.361.0777 Fregatweg 46A Maastricht, NETHERLANDS, 6222 NZ T
MILLS COMPUTER PRODUCTS, LTD. Email: empties@millsimage.co.uk Tel: +44.1773.761.246 Amber Drive, Langley Mill Nottingham, UK, NG16 4BE I,T
NEGOCIO Mlle. Carla Da Silva Email: Carla@ecolecta.fr Tel: +33.155.81.1800 Garonor Bât, 14H Aulnay-sous-Bois, FRANCE 93615 I,T
PMG PRINT & MORE Email: angie@primore.de Tel: +49.180.500.3295 Industriestrasse 163, Cologne, GERMANY 50999 I,T
PRIMESTEP TECHNOLOGY AG Email: Primestep.tech@bluewin.ch Tel: +41.61.702.2122 Talstrasse 2, Alesheim, SWITZERLAND 4144 I,T
RECLAIM-IT, LTD. Email: sales@reclaim-it.com Tel: +44.1635.876.900 Colthorp Lane, Thatcham Berkshire, UK, RG19 4NP I,T
REDEEM PLC Email: Sales@redeemplc.com Tel: +44.1324.678.906 31-37 Etna Road, Middlefield Industrial Centre Falkirk, UK, FK2 9EG I,T
Van Klaveren ccc B.V. Mr. Lennart Zernitz, Commercial Director Email: Sales@Klaveren.com Tel: +31.570.85.8589 Bremenweg 25-27 NL-7418, EJ Deventer, Netherlands I,T
W-SUPPLIES GIBRALTAR, LTD. Email: olaf@w-supplies.com Tel: +350.42.679 Montagn Pavilion 8-10 Queensway, GIBRALTAR I,T
For each entry, we have attached one or two letters designating each type of ink being produced in accordance with the following code: I = Ink Cartridge
T = Toner Cartridge www.iRecyclingTimes.com
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Directory ASIA
NUOLITE TECHNOLOGY CO., LTD. Mr. Xv, Sales Manager Email: nuolitechina004@yahoo.cn Tel: +86.21.691.7781 No. 2710 Fengxiang Road, Shanghai, China, 201802 I,T
SHENZHEN ZHONGMEILIAN TECHNOLOGY CO., LTD. Mr. Bo Li, General Manager Email: lbxjyhome@yahoo.com.cn Tel: +86.755.837.44200 29F Li Xuange PengeLi Bldg, Huaqiang Nan Road Shenzhen, China, 518031 I,T
Empty cartridge core collectors, brokers and resellers, like component suppliers, are at the beginning of the cartridge remanufacturing value chain. They are the first to monitor the status, numbers and availability of new cartridges used in the market. Collectively, they have become a multi-million dollar global industry, gathering cartridges from end users and bringing them back into the raw material supply stream for the aftermarket. Many charities, clubs and schools assist with empty cartridge collections, receiving cash in return from collectors for their respective causes. They are able to capture many cartridges which have not been remanufactured before—known as “virgins”— which are more valuable than previously remanufactured cartridges. But core brokers and empty cartridge collectors are not always the same. Many brokers, for example, do not sort or inspect what they collect from others. Remanufacturers should ask some basic questions in order to identify the best supplier of empties: 1. Does the core broker pre-sort and classify empty cartridges by type, number of times used, state of disrepair, etc? 2. Do they have their own quality control procedures? Or, do they hold current ISO credentials or other standards? 3. Do they have procedures to responsibly remove those cartridges which cannot be reused or rejected? ---- Lennart Zernitz, Commercial Director van Klaveren ccc
SINOBASE PACIFIC LIMITED Mr. Tony Hung, General Manager Email: dpswhltd@netvigator.com Tel: +852.2243.3287 Unit 816, Pacific Trade Center 2 Kai Hing Road, Kowloon Bay, Hong Kong, China I,T
SINOTIMES TECHNOLOGY LTD Ms.Ling Janney, Sales Email: sales@sinotimes.hk Tel: +86.756.386.5889 3nd Floor, the First Building, Tangjiawan Zhuhai, Guangdong, China, 519080 I,T
ZHUHAI WARMTH ELECTRONIC CO., LTD. Mr. Hongliang Wan, General Manager Email: info@zh-warmth.com Tel: +86.756.850.1297 No. 2023 Mingzhu South Road, Zhuhai, China, 519000 I,T
For each entry, we have attached one or two letters designating each type of ink being produced in accordance with the following code: I = Ink Cartridge
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T = Toner Cartridge
Recycling Times Magazine
Directory Latin America
MEETAL, INK & TONER, SA de CV Email: cartuchovacio@meetal.net Tel: 52.5515.1590 Nuevo Leon 213 Col. Hipodromo Condesa, Mexico, D.F. MEXICO 6100 I,T
RECICLADOS DEL NORTE Mr. Carlos A. Serna, General Manager Email: Dianav1@prodigy.net.mx Tel: +52.899.929.0956 Calle 4a, #234 Col. Granjas Economicas Del Norte, Reynosa, Tamaulipas, MEXICO 88730 I,T This Directory, compiled by the staff of Recycling Times magazine, represents the best information currently available to us regarding core brokers. We plan to review and update this list on an annual basis. We'll publish the directory of primary charge roller manufacurers. If you wish to
2013 Directory Publishing Plan Jan
Manufacturers of Smart Chips
Feb
Manufacturers of Ink Jet Inks
Mar
Core Brokers
Apr
Manufacturers of Primary Charge Rollers
May
Manufacturers of Developer Materials
Jun
Manufacturers of Dye & Pigment Dispersions
Jul
Trade Associations
Aug
Print Testing Labs
Sep
Manufacturers of Monochrome Toners
Oct
Manufacturers of Photoreceptors
Nov
Manufacturers of Color Toners
Dec
Manufacturers of Blades
be included, please contact us. Your comments, additions, deletions and suggestions are most welcome as they will enable us to expand and certify the information presented. Please email your comments to Keon Huang at keon.huang@irecyclingtimes.com.
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Recycling Times Magazine
Profiles
What is most surprising about the Color Imaging toner plant in Norcross, Georgia is their focus on color copier cartridges and toners. But, after spending a day with International Sales Manager, Ms. Kathy Tripp and Executive Vice President, Mr. Morris E. Van Asperen (“Van”), it finally got through to me the wisdom in that strateg y. Copier toners are by no means obsolete and color copier toners represent a real challenge, even to the most sophisticated toner plant. You might say these products serve a niche market that exists within the confines of the color toner niche market! What was even more surprising was to learn that new color copiers are being introduced frequently and CI has the rare expertise to be first to market with a set of aftermarket color toners (Cyan, Magenta, Yellow and Black) for new machines soon after they make their debut. In summary, Color Imaging’s success is based upon the development, manufacture and sale of high-margin, specialty toners and avoiding the less profitable commodity color and monochrome toners.
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The Ultimate Entrepreneur Coming from a poor farm family in Taiwan, Dr. Sueling Wang, President and Founder of Color Imaging, Inc. (formerly, Color Image) is a self-made chemist. He earned his bachelor’s degree in polymer chemistry through a work/ study program at a local Taiwanese university while employed by a plastics manufacturer. At age 23, he was running his own polymerization plant with a staff of 20 employees. With that plant in operation, Dr. Wang traveled to the U.S. to earn an MS degree at the University of Windsor (Ontario, Canada),
followed by a PhD degree at the University of Detroit (Michigan). His expertise in resin synthesis eventually brought him into the toner industry where he formed Color Image in 1989. Dr. Wang’s brilliant career has won him recognition as one of Taiwan’s most decorated entrepreneurs. Success has also brought Color Imaging accolades within the cartridge remanufacturing industry, the local Norcross community, the State of Georgia, the United States, and the government of Taiwan. For two successive years—1995 and 1996— Color Imaging earned the Inc. 500 award
Recycling Times Magazine
Front Cover Story
Color Imaging Capitalizes on Color Copier Cartridges Art Diamond Senior Consulting Editor
for being among America’s fastest growing companies. Dr. Wang received a special commendation from President Bill Clinton for this honor. Most Copier Cartridges are Containers Says Kathy Tripp, “Here in Norcross, we fill and ship from 70,000 to 80,000 cartridges per month. These are brand new ‘cartridges’ that are either molded here or shipped over from Taiwan.” Indeed, this is another indication of the brilliance behind CI’s strategy in approaching the market for color copier toner. Unlike most digital printers which use ‘all-in-one’ cartridges that contain the organic photoreceptor (OPC) drum, primary charge roller, developer roller, wiper blade, and other components, most color copier cartridges offered by Color Imaging are simply toner containers (bottles or tanks),
though many have smart chips and all require redesign to avoid infringing on OEM patents. All in the Family Color Imaging is a customer of General Plastics Industries (GPI), a Taiwan-based plastic molding firm founded by Dr. Sueling Wang’s older brother, Jack Wang. GPI got started many years ago as a producer of plastic “fashion” heels for women’s shoes. Following Dr. Wang into the imaging industry, the company evolved into a precision molding operation. Today, GPI designs specialized cartridges and components using state-of-the-art computerized drafting equipment and three-dimensional model making “printers”. GPI designs every new CI cartridge and submits it for patent review to a battery of attorneys in Asia, Europe, Japan and America.
It is only after that review finds the cartridge does not infringe any existing patent(s) that GPI and CI will proceed with cartridge production and filling. Thereafter, GPI reviews the patent databases every two weeks in the event a new patent is awarded that requires a further redesign of the cartridge by GPI. Color Imaging fills these cartridges with freshly made toner, right off the production line and under ideal conditions of clean air that is free of dust, moisture or airborne contaminants. Unlike dealing with spent, all-in-one cartridges, there is no problem in collecting, sorting, cleaning and repairing used cartridges, nor is there ever a shortage of empties or a concern that remanufacturers have regarding possible infringement of the patents or the intellectual property (IP) of others, when using spent cartridges. www.iRecyclingTimes.com
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Profiles
Dr. Sueling Wang is Founder and President of Color Imaging
First to Market How does Color Imaging manage its first to market policy of aftermarket toner development? The answer is by maintaining a crew of veteran toner chemists and engineers who can analyze each new toner and produce one that qualifies as a drop-in replacement for that OEM product. Over 20 years of experience in formulating and manufacturing either OEM or aftermarket color copier toner products has positioned Color Imaging well to beat its competition to market with an alternative to the OEM products. For the low margin commodity toners, Color Imaging has worked out deals with certain OEMs which enable them to purchase their products under a generic label. Such deals make sense because the secret to making commodity toners profitably is in maximizing volume, and this is not the focus of Color Imaging. Around and About the Plant CI’s 100 employees occupy about half of the 320,000 ft2 of floor space that is owned on a 13 acre parcel of land in Norcross. The rest of the property is rented out to other businesses. Color Imaging has installed more than a million dollars’ worth of dust collection equipment and air filtration systems to maintain good housekeeping and to protect against dust explosions. Plant workers clean up after every shift to ensure there is no toner powder buildup on overhead pipes and ductwork. They are fully conscious of the sequence of primary and
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Ms. Kathy Tripp is International Sales Manager for Color (Cover) Imaging
secondary explosions that toner plants have experienced, several of which have caused fatalities. Typically, the primary explosion may be small and limited to a puff of powder during routine cleanup or changeover from product to product. If that powder cloud is then ignited by a spark or open flame, the damage may be minimal, but the blast can shake down a much larger amount of powder—which often accumulates on overhead surfaces. This causes a secondary explosion which can be devastating. “Because we produce a wide variety of color toners for machines of many different makes and models,” explains Mr. Morris Van Asperen (“Van”), “we must perform frequent clean-up and changeover operations on our plant equipment. This often results in discharging small amounts of toner dust into the surrounding air. Our operators are aware of the fire and explosion hazard associated with toner and are extremely cautious in handling these ultrafine powders. In addition, all equipment is protected with dust collectors and grounded to prevent static accumulation and discharge.” “Toner must perform equally well in Key West, Florida,” Van continued “as it does in Nome, Alaska. For this reason we have our walk-in temperature and humidity controlled environmental test chambers available to run print performance tests at each extreme of temperature and relative humidity.” Van also noted, “To satisfy the growing
Morris Van Asperen is Color Imaging’s Executive Vice President
demand for color toner, we just completed an expansion that adds approximately 100% more capacity to our mixing, compounding and grinding operations and to our particle size classification equipment. Even though our capacity is now doubled, we still have plenty of capacity with our compounding extruders, but are already planning for our next plant expansion, within 3 to 5 years ahead, to keep up with our growth.” We have toner particle rounding equipment at this plant, but for the most part the bulk of our toners utilize either the conventional jet milled particles, or chemical toner particles that we outsource. Our unique processing technology has minimized the need for particle rounding, and as a result we will sell of our conventional rounding equipment. QA Program Mentored by Georgia Tech Color Imaging commissioned the Georgia Institute of Technology to help develop the most effective quality assurance program they could generate for its color toner production operations. One of the main objectives of this 3-year effort was to put every employee through the program so that they would all use and understand the same terminology. That is, they would all speak the same language. “In addition,” noted Van, “Georgia Tech helped us develop very specific work flow instructions that included much valuable input
Recycling Times Magazine
Profiles
This printer test lab is one of 4 similar test facilities used for final testing to ensure quality before filled cartridges are shipped
and innovative suggestions from our own employees—more work for them, but willingly embraced! Improved procedures and methods were developed—some of it coming from our own employees who accepted the overall concept and took much pride in the resulting Quality Assurance program. No mystery there as it included many of their own contributions!” One of the most important features of CI’s QA Program is that any employee, plant worker, equipment operator, literally anyone, can put the entire operation On Hold! If he or she suspects a problem or condition that would affect product quality. CI’s QA Department is the only group that can remove the hold and restart production of any affected product. Every batch of toner made in the CI plant is sampled and those samples are stored for up to 2 years. Retained samples are common in many industries in the event some issue arises in the field that can only be settled by comparing the field product in question against a retained sample bearing the same batch number. CI’s Toner Rounding Technology The lion’s share of CI’s color toners are mechanically ground using proprietar y engineering designs and equipment upgrades. In fact, after purchasing a state-of-the-art toner rounding device, CI discovered a method for improving the process and modified its existing production equipment to use in its place at a higher toner throughput.
Twin shell “V” blenders are used to combine resin, pigment and additive feeds to compounding extruders
CI will not discuss their innovative process but indicated that they are seeking a buyer for the commercial rounding equipment they originally purchased. The result of CI’s manufacturing improvements is superfine and ultrafine particles having the appropriate properties to qualify as a drop-in replacement for most OEM chemical toners. As Ms. Tripp explained, “When chemical toners were first introduced, they became the latest buzz in the industry. There was much talk about their extremely narrow particle size range and high transfer efficiency. However, our chemists and engineers have learned how to match the electrostatic charge acceptance, page yield and powder flow characteristics of most chemical toners. In those few cases—less than 10% of our production—where an OEM toner cannot be matched by our ground toner, CI purchases base chemical color toner particles from selected sources around the world. This is an example of CI striving to deliver the highest quality to its customers, by reaching out, beyond its own capabilities, to acquire the best starting materials.” Huge Inventory As every toner chemist knows, there are base toners that can be held in inventory and later blended with the proper additives to suit a wide variety of copier and printer machines and models. By maintaining a variety of these base toners in storage, CI is able to react swiftly
The bulk of Color Imaging's toners are sold in filled, proprietary, non-infringing containers designed and manufactured by GPI (General Plastic Industrial Co., Ltd.)
to unexpected changes in customer orders and to meet demanding delivery schedules. CI’s enormous $9 million warehouse facility in Norcross is testament to this production strategy. It enables CI to maintain some 250 different toners in its annual product catalog by having raw materials, work in progress and finished goods all close at hand. “Originally, when this company opened for business in 1989,” says Van, “it made only color copier toners for an OEM. After that customer’s business was absorbed by another OEM, the business shifted to monochrome and MICR toners. As recently as 10 years ago, color toner products accounted for only 2% of our production. Today, they represent more than 90% of CI’s toner sales.” For my customers, added Kathy Tripp, “Color toners account for an estimated 99% of their orders.” “There are many opportunities in color printer toner sales,” explains Dr. Sueling Wang, “but these are commodity toners. We are focused on the more challenging color copier toners. They are more difficult to formulate and to manufacture, especially in achieving complete compatibility with the developer mix in a two-component system. With OPC drum lives reaching 600,000 copies, consistent performance over the full life of the drum is no simple task. But accomplishing that goal translates into fewer competitors and higher margins for Color Imaging.”
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Recycling Times Magazine
OEM News
BLI Selects 13 Outstanding Printers Buyers Laboratory LLC, a leading independent printer and copier testing lab, announced its selection of the most outstanding monochrome printers or MFPs introduced in the past 6 months. Judged by the performance of the devices, 13 printers from 8 vendors were listed in different award categories. Lexmark was the biggest winner with 5 products on the list. Its A4 printers—including, MS410, 610, 812, 510/511, 610/611 and 710 series—were recognized as outstanding for office users. “With our smart MFPs, Lexmark is able to meet the dynamic and unique requirements of organizations with a distributed workforce,” said Marty Canning, Lexmark Executive Vice President and President of Imaging Solutions and Services. Dell products won 3 awards with affordable and user-friendly features. HP’s desktop MFP was recognized for its robust scanning capability. Ricoh was named for the ease of use and productivity of its printers. Kyocera’s monochrome printer, which targets large workgroups, was selected for its robust, reliable and affordable features. Brother’s MFC-8950 Series was picked for bringing big functionality to small workgroups. OKI’s compact MFP was singled out for great productivity and affordable features. The Pantum P2000 series was awarded in the personal monochrome category, and said to stand head and shoulder above the competition.
The Winner’s Circle • BROTHER INTERNATIONAL » Brother MFC-8950 Series Outstanding A4 Monochrome MFP for Small Workgroups • DELL INC. » Dell B1260dn Laser Printer Outstanding A4 Networked Personal Monochrome Printer » Dell B1265dnf Multifunction Laser Printer Outstanding Personal A4 Monochrome MFP » Dell B2360 Series Outstanding A4 Monochrome Printer for Small Workgroups • HEWLETT-PACKARD COMPANY » HP LaserJet Enterprise flow MFP M525c Outstanding Scan-Centric A4 Monochrome MFP for Mid-Size Workgroups • KYOCERA DOCUMENT S OLUTIONS AMERICA, INC. » Kyocera FS-4300DN Outstanding A4 Monochrome Printer for Large Workgroups LEXMARK INTERNATIONAL, INC. • » Lexmark MS410 Series
» Lexmark MS812 Series Outstanding A4 Departmental Monochrome Printer » Lexmark MX510/511 Series » Lexmark MX610/611 Series Outstanding A4 Monochrome MFPs for Mid-Size Workgroups » Lexmark MX710 Series Outstanding A4 Monochrome MFP for Large Workgroups OKI DATA AMERICAS, INC. • » OKI MB451w Outstanding A4 Monochrome MFP for Small/Home Offices PANTUM • » Pantum P2000 Series Outstanding Personal A4 Monochrome Printer RICOH AMERICAS CORPORATION • » Ricoh Aficio MP 301SPF (Also sold under the Lanier and Savin brand names) Outstanding Web-Connected A4 Monochrome MFP for Mid-Size Workgroups
Outstanding A4 Monochrome Printer for Small Workgroups » Lexmark MS610 Series Outstanding A4 Monochrome Printer for Mid-Size Workgroups
Google Finds 86000 HP Printers Open to Hack A Google search revealed that more than 86,000 publicly available HP printers are vulnerable to attack by hackers. Many of these machines don’t even require a password to stop a hacker from gaining access to it! Any hacker could use scripting to access any one of those printers and start using it to print documents. According to The Tech Journal report, people
can use a simple search with the following address to easily find the indexed printers: inurl:hp/device/this.LCDispatcher?nav=hp. Print Many of the printers, unguarded by any security measures, are easy to be hacked. Hackers only need simple script to bypass a printer’s passwords to access and use the
machine. Those printers are often used as public devices, such as in the university, which, as a result, exposes the entire organization to attack. www.iRecyclingTimes.com
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OEM News
HP Officejet Pro X Color Inkjet Printer Rivals the Speed of Laser HP launched its highly anticipated Officejet Pro X Color MFP, an office all-in-one inkjet printer that will print 70 pages per minute. An HP spokesperson claimed this is the first inkjet to print as fast as laser printers—making it the fastest desktop inkjet printer available. Industry experts are abuzz with opinions and forecasts regarding the impact the Officejet Pro might have on office desktop printing. Will it finally enable inkjet to break into this huge market as a viable contender against the ubiquitous laser printer?
It is the stationary, pagewide nozzle array printhead that enables the Pro X Color MFP to print so fast. Despite the anticipated high price of this new model, HP claims it will last much longer than traditional ones. The price of this inkjet printer remains undetermined at present. Also not revealed is the cost of the ink and the date the machine will be available for sale. HP did say, however, it will be competitively priced and should be available this Spring.
HP and Lexmark Fight for Office Market HP and Lexmark recently introduced office printers and MFPs amounting to over 100 different models. This massive release of new products suggests the two opponents are doomed to fight neck and neck in 2013 for office market share. Lexmark was the first to release new office hardware, with one of the biggest product launches ever. It released 15 new color printers and MFPs and 61 new monochrome printer and MFP configurations. Lexmark also released dozens of new toner cartridges which support higher print speeds, provide improved image quality and require less energy. On the other hand, HP joined the battle several weeks after Lexmark’s release, with
its new A3 and A4 models, including a new line of high-speed inkjet machines due to be released in 2013. The number of machines may not have equaled Lexmark’s release, but HP’s launch was significant due to the new technologies and functions the machines offer. Grabbing big in the office is of great importance to both companies. Each has struggled as the markets have remained weak. Like all their counterparts, HP and Lexmark have been selling few new products for several years. But the market for new office machines is expected to improve. Thus, it appears both HP and Lexmark are well-prepared to “duke it out” in the weeks and months ahead.
HP India Attacks Cartridge Aftermarket Hewlett-Packard is using price strategy and public education to storm India’s cartridge aftermarket industry. According to HP’s Indian Regional Manager, Mr. Bharat Kharbanda, aftermarket rechargers currently control a 30% share of the entire market. To grab back more sales and market share, HP will continue to launch easily available and cheap cartridges in combination with an awareness campaign that details the negative aspects of recharging. “The launch of affordable cartridges, starting at Rs. 499 ($9.39 US dollars) two years ago has helped combat refilling. We’ve seen our market share rise from 38 to 47 per cent. Therefore, we plan on continuing with this approach and making all our printers compatible with this cartridge,” so says Mr. Kharbanda. The current exchange rate is 53.163 rupees (Rs or INR) to the U.S. dollar. HP is also educating the public that they do not authorize ‘refills’. The OEM claims that the refilled cartridges, mainly made by unorganized ink stores, could damage both the cartridge and the printer. “Right now, only roughly half of our printers are compatible with the affordable cartridge. From now on, all the printers we introduce will be able to use this. We aim to take back lost sales and win back our market share from the refillers,” he added.
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OEM News
US Mobile Printer Market to Explode A research report from www.reportlinker.com suggests there is a great opportunity in the US mobile printer market. The report, titled “United States Mobile Printers Market Forecast and Opportunities, 2018” covers the market scale and growth trend for this industry over the next 5 years.
According to the study, the reasons for the growth include “convenience of handling; check counterfeiting, quality assured task and mobility.” Among the conclusions: these printers help increase the productivity, reduce the operating cost, increase the revenue and cash flow, and ultimately help in retaining customers.
The US mobile printer market will experience an annual growth rate of around 11% over the period from 2013 to 2018. In 2018, the market is expected to reach as high as 782 Million dollars. The leading players will be Epson, Zebra Technologies, Intermac, Printek, and HP.
OEMs Rush to Qualify Under New EPEAT Standard Since registration was opened to the imaging industry in December 2012, EPEAT has welcomed many printer OEMs as their first industry registrants. The Electronic Product Environmental Assessment Tool has become a green standard for manufacturers worldwide. Its environmental rating program is now used by 8 national governments. In the US, for example, many local and state governments and universities now
choose suppliers based on the EPEAT rating system. After the organization opened registration for imaging industry players, Dell, Ricoh and Xerox quickly became the first registered companies. The registry covers products such as copiers, printers, scanners, digital duplicators, fax machines, mailing machines and multifunction devices. In order to qualify for listing in the EPEAT
standard, imaging devices must meet 33 environmental per for mance criteria. In addition, manufacturers must sign a contract requiring them to declare that their products meet these criteria and, upon EPEAT’s request, must produce evidence to support all such declarations. The products certified by EPEAT typically enjoy an increase in sales of more than 30%.
Cartridge-Free MFP to Eliminate 90% Waste Fuji-Xerox has announced the launch of its first cartridge-free MFP, promising to cut 90% waste for its
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customers. Compared with common inkjet printers, the ColorQube 8900 uses solid ink sticks instead of liquid ink to create images. The sticks are similar in consistency to crayons and have been part of Fuji-Xerox’s product lineup in various forms since the 1990s. Fuji Xerox says the 8900 printer can reduce waste by as much as 90% compared with laser devices. It is also certified by the National Association of Printing Ink
Manufacturers (NAPIM) to have 30% bio-derived, renewable material content. Many believe its eco-friendly feature will unlock new business opportunities. “Our original intention was to launch the product prior to Christmas, so that we could presell over 20 units without even launching into the market,” says Anthony Toope, Marketing and Channel Operations Manager for Fuji- Xerox Printers Australia.
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OEM News
Canon Posts Bleak 2012 Results Canon reported lower-than-expected earnings for 2012, as the printer giant sees global demand continue to shrink. Net income in the fourth quarter of 2012 stayed almost the same compared with the same time last year. For the entire year 2012, Canon’s net income fell 9.7% to 25.8 billion dollars. Canon blames the dismal result mainly on slow economic growth worldwide. Within the company, Canon’s imaging system segment posted the strongest sales record with a 7.2% increase Year over Year ( YoY ). Office segment’s sale revenue declined 8.4% to 20 billion dollars. According to Canon, the demand for office color multifunction devices showed growth in Japan and other
regions while demand for laser printers remained sluggish mainly in European markets. Overall demand for inkjet printers also waned due to the weak economy. In terms of different regions, the Asia Pacific, including Japan, is still showing slight growth. Sales in the Americas and Europe, on the other hand, continue to fall as a result of the gloomy economic environment. Demand in China saw a dramatic 30% decline as the situation between China and Japan continues to deteriorate. However, the results did not disrupt the OEM’s confidence, as Canon projects a 13.6% income increase for the year 2013.
Lexmark’s Losses Continued in 2012 Lexmark recorded a 9% decline in its fourth quarter and full year 2012 earnings report, as the company continues undergoing reconstruction. Imaging Solutions and Services (ISS) revenue dropped 10% to $925 million. Inkjet business declined 26%, after Lexmark announced plans to terminate the segment in August, 2012. Also in the ISS segment, MPS provided the highlight, recording a 3% revenue growth to $170 million. For the full year 2012, the company saw its revenue drop 9% to $968 million. Revenue from ISS was $3.642 billion, 11% lower than 2011. MPS revenue grew 7% to $624 million. Regarding its poor earning results, Lexmark claimed confidence in its plans to continue reconstruction in 2013. The company has
strengthened its solutions portfolio through four software company acquisitions. By launching significant laser line advancements with solutions-enabled devices, Lexmark is also looking to extend its market share in MPS and high-end workgroup markets. “We are expecting to deliver savings of $85 million in 2013 from the actions announced last August, and we are well positioned to generate positive free cash flow as we have for each of the past 11 years,” said Paul Rooke, Lexmark’s Chairman and Chief Executive Officer, adding “We continue to execute on our capital allocation strategy of rewarding shareholders through share repurchases and dividends while pursuing acquisitions that further expand and strengthen our solutions offerings.”
Epson Earnings Declined Despite Price Hikes Epson reports its third fiscal quarter revenue, which ended December 31, 2012, showed a decline in virtually every segment of the company. Third quarter net sales for Epson were recorded as ¥624,152 billion ($7,209 billion), down 6.1% year over year. Net loss is ¥12.612 billion ($145,668 million), a drop from net income of ¥399 million in the same period last year. Epson mainly blames the result on the slow economy worldwide and unfavorable yen currency rate. Epson’s printer business, on the whole, also saw a decline. Net sales for inkjet printer hardware climbed with the expansion of highcapacity ink tank units. Printer price hikes also contributed to the boost. However, profit of the whole segment was dragged down by bleak consumable sales. For the large format printer (LFP) segment, Epson says its high-end products have boosted average selling prices of the devices and consumables. But the revenues from this segment still declined, affected by foreign exchange and contracting print volume. In terms of different regions, inkjet printer demand experienced decreases in North America and Europe. It also trended downward somewhat in Japan at the end of the third quarter despite continued economic growth. Large format inkjet printer shipments were slowed by the bleak economic environment, while demand was seen decelerating in the once firm Asian markets, especially in China.
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Actionable Insights Charles Brewer
A Canon GEO May Not Mean the End of the World At the end of February, the United States International Trade Commission (ITC) is expected to deliver the initial findings of its investigation into toner cartridges being imported into the U.S. that infringe certain gear patterns held by Canon. According to the procedural schedule for the investigation, which is investigation number 337-TA-829, the commission’s so-called final initial determination is due on or before February 28. Most industry watchers—including me—are certain that the commission will find that many companies exporting toner cartridges to the U.S. have infringed Canon’s gear patents and recommend the commission issue a general exclusion order (GEO). The investigation began early last year after Canon filed patent-infringement complaints in the U.S. District Court for the Southern District of New York and with the ITC claiming that over 30 remanufacturers and resellers were marketing products that infringed U.S. patents 5,903,803 and 6,128,454, which cover the unique design of a gear used to rotate drums in most Canonand Hewlett-Packard-brand toner cartridges. Many of the offending cartridges were sourced from outside the U.S. The case was initiated in January and the OEM’s case must have been very strong because by October, all of the defendants in the case had either settled with Canon or defaulted in the matter. Canon filed its complaint with the ITC because one of the commission’s key jobs is to keep US markets free of imported products that compete unfairly. Because the companies named in the suit demonstrated little to no opposition, it seems likely that Canon has proved to the commission that the U.S. market is being flooded with infringing Canon and HP toner cartridges and it must be protected by an exclusion order. If the ITC does issue a
GEO, it will curtail the ability of companies to ship remanufactured and new-build Canon and HP toner cartridges into the U.S. With few exceptions, the GEO will prevent the importation of non-OEM toner cartridges for use in Canon and HP laser devices that infringe the two patents in question. Of course, the market is huge and the specter of a GEO strikes fear into the hearts of many that export cartridges to the U.S. Such fear is well founded. Several years ago, Epson successfully sought a GEO barring the importation of third-party inkjet cartridges into the U.S. and now dominates the market. In that case, Epson was able to show that dozens of companies were marketing a range of cartridges that violated various patented technologies used in almost all Epson cartridges. The violations were so numerous and involved so many SKUs that the ITC barred the importation of virtually all third-party Epson inkjet cartridges for desktop machines. As a result, Epson was able to quickly regain much of its market share and today holds more than 90 percent of the U.S. market for the ink cartridges used in its desktop machines. While the GEO on the Canon gears will have a significant impact on the US market in the short term, for several reasons I do not think the affect will be as devastating to the third-party supplies industry as the Epson GEO. In the Epson case, a range of patents were found to be infringed covering various technologies, while in the Canon case only two patents are involved and both are related to the gear. Several companies including Ninestar, Print-Rite, and Static Control Components say they have compatible gears based on various proprietary designs that do not infringe the two Canon patents. Presumably, these firms, or clients that use their gears, will petition the ITC for GEO exemptions. If the
alternative gears are truly non-infringing, the ITC should grant such exemptions. Firms seeking an exemption may also harvest non-infringing OEM gears and reuse them when remanufacturing. While the U.S. market for Epson inkjet cartridges is attractive, it is nowhere near as lucrative and massive as that for Canon and HP toner cartridges. It is inconceivable that exporters with legitimately remanufactured Canon and HP toner cartridges will just walk away from it without attempting to re-enter with non-infringing products. Many U.S. remanufacturers will continue to demand imports because U.S. firms depend on legitimate imports to augment their product lines. Likewise, many U.S. retailers and distributors also rely on imports for their branded house brands. I’m not suggesting that there will be no disruptions. Initially, U.S. Customs will bar the entry of most non-OEM cartridges. And I’m sure the exemption process is time consuming as well as costly so it may be awhile before imports begin to trickle back into the U.S. But the situation will not be like what happened with Epson. Over time, certain reputable exporters will be gain exemptions to the Canon GEO and they will be back in the U.S. with products that do not violate the OEM’s patents.
Charles Brewer has covered imaging technology for 20 years as editor for Inc. Magazine, ComputerWorld, The Lyra Hard Copy Supplies Journal and numerous white papers and reports. He is a popular speaker in China, Europe, and North America. His intelligence briefings can be read online at action-intell.com Email: cbrewer@action-intell.com www.iRecyclingTimes.com
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People
5 QUESTIONS My Reaction to Pantum's Award by BLI 1. Congratulations on Pantum being picked by BLI in its lineup of awards for 2013. What are the advantages of the Pantum P2000 over its competitors? What are its major markets? Yes, the Pantum P2000 series was given a “Pick” Award by BLI this winter in the “Outstanding Personal A4 Monochrome Printer” category. The printer has been proven by existing consumers as well as the BLI testing report to have perfect reliability. What’s even more impressive is the laser printer can make more than twice the impressions of its nearest rival in the same class. And the image quality has nice crisp text, the entire range of gray scale levels and solid colours. Further, routine maintenance procedures are simple and keep downtime to a minimum. We enjoyed a fantastic 2012! As a dynamic, new brand, Pantum has already entered more than 20 countries in just one year. We now have a strong team across the world together with Pantum Europe and Pantum USA, to continue building solid foundations in these most mature markets in the world. But we also have been moving quickly to new emerging countries, like Russia, India, South Africa, UAE, Mexico, and Kazakstan among others. 2. Is this the first award for a Chinese made printer? Yes. Pantum is the first laser printer to be made in China holding its own patents on its own core technology. So I’m also pleased it’s also the first to receive such a prestigious award. I took immense pleasure when BLI Senior Analyst, Marlene Orr said the Pantum P2000 series has delivered impressive results despite the most stringent parameters. Or said the Pantum is “highly reliable” and “very good value”. This means Pantum is a quality product despite being the first Chinese printer to be manufactured. 3. What is your response to Pantum winning the award as a personal printer when you really seek business placements for the printer? We are not only focussed on the business customer with our higher speed printers, but are dedicated to providing personal printing services for those people in small or large
organisations wanting to be impressed with the best TCO, or total cost of ownership. We have created value-added laser printers and multi-function devices with robust features and low operating costs—hence the low TCO. How do we do it? We design Pantum printers to have sturdy print engines, which means they will have a much longer working life. In addition, they can meet a higher monthly workload than comparative products as well. Based on its solid technical strength, its cost advantages, its distinct focus on innovation for business, I know we can achieve the ultimate goal of becoming the world’s leading printing products and services provider. It’s very exciting to be able to provide our business customers with such a quality printing solution. 4. Will Pantum continue to focus on monochrome? What is about your new concept for the future product? According to IDC research, 2012 was a challenging year for the worldwide hardcopy peripherals market. Laser printer shipments declined 3.95% year over year. However, new opportunities such as cloud printing and smart printing are promising to refuel the growth of the printing industry. Another strong trend for the future is more user-friendly products that make printing effortless. These trends bode well for Pantum in the future. With 30 years of solid work in the printing supplies industry behind us, I am confident we can give an equally solid future for our SOHO, SMB and large business customers with a complete range of single function, monochrome, and multifunction laser printers and printing solutions. 5. Pantum entered many markets in 2012 including Middle East, North America, Europe and UK. What are your plans for 2013 and the years to come? 2012 was a fruitful year for Pantum. And the BLI "Pick of the Year" was a nice reward. Now we have launched the P3000 series with which can print faster at 30-34 ppm with automatic duplexing. I want to provide the same robust, high print quality, low maintenance printer to emerging markets as well. My aim is to see Pantum become one of the Top 5 players in the laser printer market in the next 5 years. I am confident we can do it!
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Tech Zone Mike Josiah
Remanufacturing the HP LaserJet Pro 400 M401/MFP M425 CF-280A/X toner cartridge First introduced in June 2012, the LaserJet Pro 400 M401 series of laser printers is based on 35ppm, 1200dpi Canon engine that comes standard with 256Mb Memory. Two different cartridges are available for this series, the CF280A rated at 2,700 pages, and the CF280X rated for 6,900 pages. See Figures 1 & 2 to see the 2 cartridges. These machines are different from the LaserJet 300/400 series. The engines and cartridges are totally different. This will most likely be a bit confusing for customers as when talking about the machines I’ve noticed people leaving off the “Pro” part. The cartridges are similar in design to the P2035 cartridges, but are not interchangeable. The drum drive gear is also basically the same as the P2035. It is a floating type that uses a ball and socket configuration. See Figure 3. By the time you’re reading this, conversion kits to convert CE505A/X cartridges to CF-280A/X will be available. These cartridges use a pin system to hold the two halves of the cartridge together. 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 2035 should work here.
▲ Figure1
▲ Figure2
▲ Figure3
The printers released in this series so far are as follows: Pro 400 M401nPro 400 M401dn, Pro 400 M401dw Pro 400 MFP M425dn, Pro 400 MFP M425dw Cartridge troubleshooting some simple printer troubleshooting will be covered at the end of this article. Supplies required • LY toner for use in HP-M401 toner for the CF280A cartridge (2,700 pages)(Amount to be determined) • HY toner for use in HP-M401 toner for the CF280X cartridge (6,900 pages)(Amount to be determined) • Replacement Chip • New Drum (Optional) • Wiper Blade (Optional) • Dr. Blade (Optional) • Magnetic roller (Optional) • Sealing Strip (Optional) • Cotton Swabs • Isopropyl Alcohol • Drum Padding Powder
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Tools Required • Jeweler’s screwdriver • Phillips head screw driver. • Small Common screw driver • X-Acto knife with square chisel type blade. (# 17) • Flush Cutting wire cutters • Dremel type tool with side grinding bit • 3/32 drill bit • Small#4 ¼” long self tapping screws
Tools Required to remove and install old OEM gears • Metal 3/16” rod about 18” long.(From local hardware store) • Needle nose Pliers • Super glue or equivalent • Rubber mallet • Volt meter The pins need to be removed to open the cartridge. The best way to remove them without damaging the cartridge is to cut two small holes.
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Remove the drum cover by prying up on each end. Note the spring position so that it can be replaced later.
1
3
2
4
With a flat head screwdriver, press the drum axle pin out from the inside of the cartridge wall as shown. 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.
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Drill a shallow hole on each side of the cartridge as indicated by Figures 1 & 2 (un-cut), 3 & 4 (cut).
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step >
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.
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Separate the two halves.
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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 >
step >
step >
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Tech Zone
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9
Remove the 2 screws and the Wiper Blade.
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Clean out the waste toner.
Coat the wiper blade with your preferred lubricant. Install the blade and 2 screws.
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Re-Install the OEM OPC Drum and metal axle pin. The metal axle pin should have a small amount of conductive grease on the tip. Remove the old grease and replace before inserting the pin. Make sure the axle pin is fully inserted.
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Remove the PCR and clean with your standard PCR cleaner.
Re-install the cleaned PCR. Note that a new OEM PCR has a small amount of conductive grease on the black (contact) side. step >
step >
step >
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Remove the drum.
step >
step >
step >
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Tech Zone
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Locate the Swivel hub on the OPC drive gear shown.
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Remove the swivel hub on the drive gear by pulling it out using pliers.
step >
step >
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Straighten out the contacts on the contact gear.
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Clean the contacts using cotton swab and alcohol.
Apply a few drops of super glue around the inside of the drum about 1/8� in from the edge. Make sure you leave space with no glue present for the contacts to touch the metal drum wall. These contacts must be metal to metal with no glue in between them. If any glue is in between the contacts and drum wall, there will be drum ground issues (solid black pages). Install the contact gear. step >
step >
step >
Slide a 3/16" metal rod about 18" long along the drum wall until it meets the side wall of the gear. Lightly tap the rod a few times with a hammer, rotate the drum, do the same until it comes loose. Normally it will take three to four taps for the gear to come loose. Do the same for the contact side taking care not to place the rod anywhere near the copper contacts that bite into the drum.
step >
If you are replacing the OEM drum, follow this procedure to remove the gears and install them on the new drum:
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Tech Zone
step >
On the supply chamber, 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.
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Remove the Magnetic roller drive gear. The end cap will keep the bushing in
place.
step >
step >
step >
On the opposite side, place a few drops of medium or thick super glue on the inside wall of the drum about 1/8”in from the edge. This will prevent the glue from overflowing into the drum coating when the drive gear is installed.
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Remove the DR. Blade and two screws.
step >
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”.
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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. step >
step >
Install the drive gear. Place the drum onto a flat surface and gently tap the gear with a rubber mallet until the gears sits flush.
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Install the swivel hub into the drive gear.
step >
Fill through the Mag roller opening with 110g of P2035 toner for the “A” cartridge, 290g for the “X”. There is not a fill plug in these cartridges.
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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.
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If you are going to seal the cartridge, there is a white plastic shelf that needs to be removed. See Figure 41. The shelf is held on with double sided tape. It can be gently pried off with a small screwdriver. step >
step >
step >
Check the drum ground with an ohm meter. Place the probes into the drum contact and drum (very edge on the drum where there is no coating), and check for continuity. Be very careful to keep the one lead on the edge of the drum. The top metal part has a clear protective coating on it and is easily scratched. Do not press in hard or the lead will slide across the drum ruining it. Allow the glue to dry for about a couple of minutes and the drum should be ready to use.
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Remove the magnetic roller assembly.
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Tech Zone
step >
35
step >
Re-install the doctor Blade and two screws.
Clean the old grease off the contact plate, and replace with new conductive
grease.
step >
37
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. 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.
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Place the two halves together, make sure that the two springs are aligned, and insert the two pins. Make sure that the pins are slightly pushed in so that they do not interfere with installing the cartridge in the printer. step >
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Install 2 small screws into the holes previously drilled out. Leave the top 3rd hole alone! (This weld was broken when the end cap was removed). A screw here will interfere with installing the cartridge in the printer. In our tests, the two screws will hold the end cap on with no problems.
step >
step > step >
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.
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Install the drum cover; make sure the spring is situated correctly, and the slot on the cover fits into the tab on the cartridge.
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Tech Zone
step >
Replace the chip by slicing off the top two corners of melted plastic and sliding the chip out. After replacing the chip if it seems a little loose in the slot, place a dab of hot glue on each of the corners that you sliced off. The hot glue is easily removed when recycling the cartridge again, but will firmly hold the chip in place.
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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
â–˛ HP CF-280A Start
2013 Event Calendar January 26-29
March 5-7
April 17-18
Paperworld
Paperworld Middle East
ITEX 2013
Frankfurt, Germany www.paperworld.de
Dubai, United Arab Emirates www.paperworldme.com
Las Vegas, USA www.itexshow.com
May 21-23
June 18-20
October 17-19
BUSINESS-INFORM 2013
Reciclamais South American Expo
RemaxAsia Expo
Moscow, Russia www.sforp.ru
Sao Paulo, Brazil www.reciclamais.com
Zhuhai, China www.iRecyclingTimes.com
October 17-19
November 7-10
December 4-5
iPrint (China) Expo
RechargExpo Southeast Asia
Asia Imaging Fair
Zhuhai, China www.iRecyclingTimes.com
Jakarta, Indonesia www.rechargeasia.com
Los Angeles, USA www.rechargeasia.com
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