Recycling Times Magazine English Edition-Issue 40 by Recycling Times Media Corporation

EDITORIAL

Tony Lee A trade association is an organization funded by businesses that operate in a specific industry. It’s an intermediate organization bridging government, enterprises and the public. Through fair practices and autonomy, it provides various services in the interest of its members: consultation, stewardship, supervision, coordination, government, lobbying or public education etc. Many print consumables trade associations were founded around the world as our industry flourished. During their course, these trade associations have made significant contributions to propel the development of the aftermarket industry. One such contribution to the global cartridge remanufacturing industry has been made by the International Imaging Technology Council (Int’l ITC) through the development of STMC, a standardized

Publisher & Managing Director Tony Lee

Directors David Gibbons Sabrina Lo

Consulting Editors Art Diamond, Phyllis Gurgevich

Editorial Team Doris Huang Doris.Huang@iRecyclingTimes.com Jane Yu, Lisa Liang, Violien Wu, Virginia Ruan, Wendy Lee

Graphic Designers Miracle Wei, Kevin Deng

Sales Team Kevin.Zhu Kevin.Zhu@irecyclingtimes.com Abby Wang, Tobee Deng, Victoria Zhao

Marketing Team Jessica Yin Jessica.Yin@iRecyclingTimes.com Randall Zhang, Sam Ho, Tracy Zhang

Operations Team Charles Lee Charles.Lee@iRecyclingTimes.com Betty Lee, Candy Chen

Subcriptions Joy He Joy.He@irecyclingtimes.com

Regional Contributors José Bustamante (Europe), Sand Sinclair (America), Maurice Aiken (Australasia), Bevelen Sudhu (Africa)

Regional Offices 6B Xinhai Commercial Building,104 Yuanlin Road, Jida, Zhuhai 519000, China Tel: +86 (0)756 3220716 / 3919266 Fax: +86 (0)756 3220717 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

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test method to evaluate toner printer cartridge performance. The United Kingdom Cartridge Remanufacturers Association (UKCRA), on the other hand, successfully lobbied the British government to include spent inkjet cartridges under the Waste Electrical and Electronic Equipment (WEEE) directive. If they had failed, OEMs would not have to recycle cartridges and it would have opened the door allowing the use of smart chips to prevent cartridges from being refilled and reused. China’s Professional Consumables Committee (a sub committee of the China Consumables Industry Association— CCIA) appealed against Epson to the State Intellectual Property Office. As a result, 62 of Epson’s patents were invalidated. The European Toner & Inkjet Remanufacturers Association (ETIRA) released Guide to Clones in 2012, educating dealers, sales channels and consumers on how to distinguish between legal remanufactured cartridges, and the patent infringing clone cartridges, and illegal counterfeit cartridges. The Association of Japanese Cartridge Remanufacturers (AJCR) sought to reduce its carbon footprint in 2012 by appealing to each member company to help reach a goal of reducing carbon dioxide emissions by at least 109,685 tons. Trade associations around the world, based upon their regional needs, have conducted a lot of activities to promote the development of the industry. However, most are fighting by themselves. As OEMs seek to protect their market share by being more aggressive, and the increase of clones causes further market share loss to the remanufacturing industry, we must realize that there are some common concerns facing every trade association. To tackle these common problems, different trade associations must unite to fight together. I understand some associations may doubt this proposal. But under the context of globalization, what industry can be successful without cooperation?

CONTENTS

RECYCLING

TIMES No. 40 | 2013

05 | NEWS IN BRIEF Imaging Experts to Confront Threatening Industry Change

37 | ENVIRONMENT 39 | REGIONAL NEWS

06 | WORLD NEWS Aftermarket Grabs Opportunities in Booming Russian Market

45 | TECH ZONE Epson LPS-5000 Toner Cartridge

09 | LEGAL UPDATES Ink Jet SuperStore Fires Back at Lexmark’s Amended Complaint

47 | MONEY FROM HOME Look for the Silver Lining 49 | ACTIONABLE INSIGHTS Hardcopy Business Looking Up

11 | JUST A MINUTE We are not Amused 11 | TRENDS IDC Reports Declines in Worldwide Hardcopy Peripherals Shipments 13 | NEW PRODUCTS

Scores of OEMs and aftermarket leaders in Santa Barbara, California, have applauded Art Diamond who received an honorary lifetime award for his 58 year career contribution to the global toner and imaging industry, as a pioneer, scientist, author, inventor, advocate and supporter.

21 | AFTERMARKET NEWS JADI Launches New Facility Producing Palm Oil-based Tone 34 | OEM NEWS HP Reports Strong Performance in Printing in 2Q2013

51 | KEEPING UP Moving From Failure to Failure Quickly Ultimately Brings Success 52 | THE LISTS

FEATURES

Why Associate?

There has never been a more important time for our industry to come together, close ranks, and speak with one voice.

43 | PEOPLE Where Have You Been? Industry Veteran Phyllis Gurgevich Joins Recycling Times

14 | FRONT COVER STORY

Securing Output Devices is No Longer a Simple or Singular Process

Today, virtually any device that is attached to the network becomes an access point to business assets and corporate information. 40

The Two Biggest Supplies Markets and the Trends Driving Them The U.S. and W. European supplies market are huge and seeing flat growth at best.

Vincent van Dijk, ETIRA Photo Credit: David Gibbons Recycling Times informs, educates, and nurtures the global printer consumables industry innovatively through an integrated broadcast, print, digital and social media strategy. As such, we honor and respect the intellectual property of all businesses and individuals. Consequently, we take a zero tolerance position to the manufacture, distribution and sale of patent infringing “cloned” and counterfeit printer cartridges and components. We continue to strive to avoid promoting such in our advertisements, articles and editorial content. All rights reserved. © July 2013 by Recycling Times Media Corporation. The contents are not be to copied or republished without official written consent. Editorial content may not necessarily represent the offical position or view of Recycling Times Corporation. Readers should apply due deligence when doing businesss with any advertiser or company listed in this publication.

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NEWS IN BRIEF

Imaging Experts to Confront Threatening Industry Change

InkJet and Toner Thrashed Out

IJSS Strikes Lexmark’s Complaint, as MSE Complies

Industry experts will confront issues currently threatening the print consumables industry and share opportunities and need for change at Conference@2013: Preparing for Change on October 16, at the Zhuhai Holiday Inn, China. Recycling Times Media Corporation expects over 200 global industry leaders to participate. Confirmed speakers: Allen Westerfield, President of Imaging Supplies Coalition; Charles Brewer, President of Actionable Intelligence and Robert Palmer, President of Palmer Consulting and other to-beannounced experts. They will share ideas that will transform business models for the next 12 months and insights you would not want your competitors to know.

Key issues facing the toner industry have been thrashed at the three day Toner Conference 2013, organized by the Tiara Group in Santa Barbara, California. Scores of OEM and aftermarket leaders and scientists examined the technological battle between inkjet and tonerbased imaging processes, specialty toners, color toners, recent patents, court actions and legal matters. Many experts believe HP’s latest Officejet Pro X Printer will finally break through the wall impenetrable to numerous inkjet office printer wannabes that have come along in years past. But some industry observers are withholding judgment until these printers have been in service for a while and have built up a track record. However, the potential challenge for toner industry is real.

Los Angeles, California-based InkJetSuperstore (IJSS) Inc. has filed a reply to further support its motion to strike Lexmark’s first amended complaint. On the other hand, MSE has agreed to turn over certain documents to Lexmark. Lexmark brought a motion to compel against MSE after learning that MSE was one of IJSS’s suppliers. But now they have reached an agreement on the production of documents. MSE has essentially agreed to most of the contended document-production requests, although Lexmark has agreed to limit the number of years of documentation MSE must produce and has stipulated that MSE need not provide certain invoices and purchase orders. Cartridge World, too, turns over the information as Lexmark requested—a list of franchisees and their addresses.

Read more: bit.ly/11r3iOa ■

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AFTERMARKET NEWS Indian Toners and Developers Reports Higher Sales, Lower Profits Toner manufacturer, Indian Toners and Developers Limited (ITDL), reported its financial results for the first quarter of 2013, showing a net loss of Rs 0.9 million (US$15,907) for 1Q2013, compared to a

India’s NCN Bestows Editor’s Choice Award on Pantum

net profit of Rs 12.1 million (US$214,000) for 1Q2012. Sales totaled Rs 76 million (US$1.34 million) for the first quarter of 2013, a 3.97% increase compared to sales of Rs 73.1 million (US$1.29 million) in the same quarter one year ago. For the audited full year ended March 2013, ITDL’s net profit was Rs 23 million (US$407,000), down 13.86% compared to previous year. Sales were Rs 271.9 million (US $4.81 million), a 4.42% increase. Read more: bit.ly/12lg5Vu ■

Recycling Times Directory Publishing Plan Aug 2013

Print Testing Labs

Feb 2014

Manufacturers of Ink Jet Inks

Sep 2013

Manufacturers of Monochrome Toners

Mar 2014

Empty Cartridges Collectors and Brokers

Oct 2013

Manufacturers of Photoreceptors

Apr 2014

Manufacturers of Primary Charge Rollers

Nov 2013

Manufacturers of Color Toners

May 2014

Manufacturers of Developer Materials

Dec 2013

Manufacturers of Blades

Jun 2014

Manufacturers of Dye & Pigment Dispersions

Jan 2014

Manufacturers of Smart Chips

Jul 2014

Trade Associations

(Read more on centerfold pullout pages)

NCN, one of India’s most respected IT and trade magazines, recently invited vendors, resellers, channel partners and end-users to vote online for a product evaluation. The poll recognized Pantum with the Editor’s C Choice Award for developing one of the “6 Most Innovative Products of the Year” for 22012. Ajay Sharma, Sales Mana Manager for Pantum, India, said: “It is indeed an m to accept this honor for me b on behalf of Pantum. This is a fitting recognition of the efforts we devoted to develop this unique printer. Moreover, it is also a testimony to the confidence invested in us by our channel partners, resellers and end users. Rest assured, we will continue to deliver to our stakeholders’ requirements.” Read more: bit.ly/10E0XQd ■

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24 FRONT COVER STORY

Battling the Enemy ETIRAâ&#x20AC;&#x2122;s Vincent van Dijk Fights the Clone Invasion David Gibbons, Director Recycling Times Media Corporation

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FRONT COVER STORY

Running a trade association of cartridge remanufacturers is not the same as it was 10 years ago. “Back then, we were fighting for rightful existence against the original equipment makers (OEMs),” says Vincent van Dijk, Secretary General of the European Toner and Ink Remanufacturers Association (ETIRA).

Nowadays, the battle is with the newlybuilt, copied cartridges, also called clones, which have invaded Europe and other continents, are a major threat to OEMs and rechargers alike. In most cases, they’re not only much cheaper than an equivalent OEM cartridge, but cheaper than remanufactured products. At times they be sold for less than the price of an empty core—before it has been remanufactured! The battle to win the hearts and minds of consumers, to inform them they have a choice, continues to rage with the media, government, business and in the home. An Industry Matures Vincent van Dijk, a lawyer by profession, was new to the remanufacturing industry back in 2002. However, he demonstrated to business leaders who assembled at an industry forum in Barcelona, Spain, that he had what was needed for the industry in Europe. David Connett, Publisher of The Recycler magazine said. “[Van Dijk] had the foresight to realize that a stronger,

more forcible alliance in the form of a European association of remanufacturers would have more of an impact with law makers in getting issues raised and dealt with.” In a very short time, the “Recycled” brand, together with a media pack, was put together to help remanufacturers push the environmental benefits for reusing printer cartridges. Next came the real push to lobby governments. The big win was ETIRA’s influence over the rewording of the European Union’s WEEE (Waste Electrical & Electronic Equipment) Directive to include remanufacturing as a legitimate process. Things were beginning to happen. ETIRA was officially founded just over 10 years ago—on 10 February 2003. Van Dijk was appointed as Secretary General, a part time role which has kept him busy in an almost full time capacity for 10 years. ETIRA’s first President, Frank van Meenen, declared the establishment of a trade association with a paid executive was “living proof this industry has finally grown up.” Van Dijk says its original

charter was “to work on environmental issues, and improve the image of the industry to consumers, whilst working on quality and standards.” Battling the Clones The Code of Conduct, originally voted on, and agreed to, by ETIRA’s members back in 2003, is an example of how quickly matters can change in just 10 years. In January 2013, an updated, revised Code of Conduct was approved. It includes similar obligations to the environment, compliance with national and international laws, and health and safety work practices. But its new emphasis insists ETIRA members will not engage in the sale or distribution of patent-infringing new-built cartridges. Van Dijk, says it shows ETIRA is “dead serious about patent-infringing clones”. ETIRA published a white paper called Guide to Clones, in English, Spanish, French, Italian, Hungarian, and German. The guide warns the marketing of clones will “quickly kill your business and is not environmentally friendly.” Van Dijk explains further that clones infringe the patents of the OEM by simply copying the original OEM cartridge. The manufacturers, which are typically in China, hold no patents of their own. They simply reverse engineer the OEM product

26 FRONT COVER STORY

and copy it, usually with inferior plastics and metals. They are also not suitable, legally, logistically and physically, to be remanufactured for re-use. This means they are an environmental disaster as well. Drive Them Out of Europe “Clones will eventually be driven out of Europe,” van Dijk predicts. The OEMs have certainly become more active. In Spain they removed many illegal patent-infringing new-builts from that market, leaving most of the importers and traders bankrupt. Police also raided a warehouse in Germany where workers were fitting OEM labels onto thousands of clone cartridges. The owners have been jailed. Van Dijk expects this kind of activity will happen soon in other EU countries too. Van Dijk applauded such proactive measures taken by the OEMs with an ETIRA issued public statement. In it, he endorsed a raid on two companies at the RemanExpo at Paperworld in January 2013 where patent-infringing clones were seized from their booths. “ETIRA fully endorses these raids,” says van Dijk. “Selling patent-infringing newbuilt cartridges is a criminal offence, and resellers and distributors should not buy these products if they want to stay out of court and avoid bankruptcy”. OEMs & Remanufacturers Work Together The invasion of the clones into Europe has given ETIRA some new opportunities. The Association has grown much stronger and has more members than ever before. OEMs and remanufacturers are working together to claw back the market that has been decimated with patent-infringing products. “I have also found the OEMs to be more available to meet with us to face this new battle,” van Dijk says. “The clone may be an aftermarket product but it hurts the OEMs even more than it does the legitimate, remanufacturing

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industry.” Van Dijk explains that traditionally, the OEMs have a window of opportunity to cash in on 100% of the consumables purchasing in the first year after releasing a new printer. “During this time, the remanufacturers are busy collecting empties for remanufacture, and looking for component parts to repair and rebuild the cartridges.” However, the manufacturers of clones very often have aftermarket product available in a matter of weeks. This hurts the OEM right out of the gate. Van Dijk believes the OEMs and the remanufacturing industry (which enjoys the right of permissible repair) should work together to drive out the clone invasion. Lobbying for Advantage One of the biggest frustrations facing the industry in Europe is that each country has different laws. Unlike the U.S.A. which has 50 member states, all abiding by one set of federal laws, there are 50 countries in greater Europe, of these, 18 countries in Western Europe, and 27 countries in the European Union, each have different laws and views on how to manage finance, patents and the environment. During the last 10 years, ETIRA

has been able to successfully block, or sponsor, revisions made to tenders through its proactive lobbying, including opening the tender to remanufactured cartridges. ETIRA lobbied the EPEAT standards board so that printers could work with non-OEM cartridges without affecting the warranty, and should not have lock-out fittings which prevent the use of remanufactured cartridges. ETIRA also uses documents developed by other organizations, such as the America’s Environmental Protection Authority (EPA), to strengthen their arguments with government to include the more environmentally friendly remanufactured consumables in their tenders. Winning Little Victories ETIRA has also fought hard to gain observer status in the formation of the ISO 29142 Cartridge Characterization Standard. This new measurement tool, which has been derived by the OEMs, seeks standards in three areas: general aspects and performance, labeling, and environmental impact of printer cartridges. “Every time we manage to get even a few words changed,” van Dijk says, “we are winning little victories for this industry.” It is all about these little victories. Every inch or centimeter gained in the thinking of governments, OEMs, the media and consumers will make remanufacturing a more viable and sustainable industry for the future. “I like to think I keep my eye on the future for this industry,” van Dijk concludes, “ which means we have to go into battle today, and again tomorrow, and the next day.” The industry needs ETIRA as much as ETIRA needs each individual to step up to the line and join the battle as a united, resourceful and energetic force to be reckoned with. (See more ETIRA's achievements on p27.) ■

LIFTOUT DIRECTORY

TRADE ASSOCIATIONS FOR IMAGING CONSUMABLES ASIA ASSOCIATION OF JAPANESE CARTRIDGE REMANUFACTURERS Mr. Shirasaki Hirotaka, President The primary objectives of the AJCR are to assist 3-32-1-103, Sanno, Ota-ku Japanese remanufacturers in establishing their Tokyo, 143-0023, JAPAN operations, growing their businesses and offering Tel: +81.03.5718.2522 quality products to customers. Website: www.ajcr.jp

CHINA COMPUTER INDUSTRY ASSOCIATION CCIA is a trade association founded by and participated in by enterprises and institutions which are engaged in scientific research, development, production, and application of computers, printers and related products.

Mr. Zhong Xihe, Secretary General 27 Wanshou Road, Beijing, 100846, CHINA Tel: +86.10.682.08763 Email: ccia@chinaccia.net.cn Website: www.chinaccia.org.cn

COMPUTER & MEDIA DEALERS ASSOCIATION Deepak Agarwal, Secretary Computer & Media Dealers Association (CMDA) S No 93, Laxminagar commercial complex,Office is one of the premier associations of IT dealers No.23, Opp.Gajanan Maharaj Math, Laxminagar and resellers in India. It has more than 350 Pune 411009, INDIA members, who controls almost 90% of the Tel: +91.20.2421.2730 computer hardware and consumables business in Email: admin@cmdapune.org Pune region. Website: www.cmdapune.org

INDIAN CARTRIDGE REMANUFACTURERS & RECYCLERS ASSOCIATION Mr. C. Amarshimha Varma, President The Indian Cartridge Remanufacturers and #63 Ground Floor, 5th Cross, Malleswaram, Recyclers Association (ICRRA) is a national Bangalore 560003, INDIA association operating in India which promotes the Tel: +91.80.2344.5485 quality remanufacture of print consumables and the Email: info@icrra.com ethical business practices by its members. Website: www.icrra.com

JAPAN BUSINESS MACHINE & INFORMATION SYSTEM INDUSTRIES ASSOCIATION Mr. Atsushi Sakurai, Ambassador JBMIA aims to contribute to the development of the NP Onarimon Bldg.3-25-33, Nishi-Shinbashi Japanese economy and the improvement of the office Minato-ku, Tokyo 105-0003, JAPAN environment through comprehensive development of Tel: +81.03.5472.1101 Japanese business machine and information system Email: sakurai@jbmia.or.jp industries and rationalization thereof. Website: www.jbmia.or.jp

PROFESSIONAL CONSUMABLE COMMITTEE Monitoring the pulse of the international imaging consumables industry and the development of its markets, the Professional Consumables Committee contributes to the development of China’s consumables industry.

PROFESSIONAL PRINTER COMMITTEE The Printer Professional Committee actively associated with domestic and foreign organizations and has made progress in boosting the development of China’s printer industry, as well as the information-based public utilities and the tax-controlling printer industry.

Ms. Zhang Huijun, Secretary General Macheng Road No. 36, Hangzhou Zhejiang, 310012, CHINA Tel: +86.571.8836.6942 Email: smdys@163.com Website: www.chinaccia.org.cn/aboutus/ consumablesintro.htm

Mr. Luo Hongyuan, Secretary General No. 211, Beisihuan Zhong Road, Beijing, 100083, CHINA Tel: +86.10.5161.5851 Email: nctc@nctc.org.cn Website: www.chinaccia.org.cn/aboutus/ printergroup.htm

Mr. Ken Lalley, European Vice President of Sales Static Control Components (Europe) Limited

In today’s murky business waters, there is no better ally to help keep your business afloat than your local remanufacturing trade association. Trade associations have helped unite the global aftermarket industry to fight against the new build/clones invading the marketplace, an issue of great importance to genuine remanufacturers. Associations form a powerful triad joining industry, government and consumers to help advocate for the aftermarket industry and warn of the dangers of being involved with the clone industry. Many associations, such as ETIRA and I-ITC, deny membership to businesses that sell or manufacture clones. Trade associations help unite and educate the industry through meetings, newsletters and trade shows. The upcoming R3 conference in Prague is the first clone-free event for the industry. This is the beginning of a trend that will help unite global trade associations into a strong, vibrant coalition fighting against the clone industry. Governments frequently consult with trade associations because of their vast access and knowledge of the industry which can be quickly passed on to policymakers. This can be especially vital in today’s market as government agencies focus on sustainable development and try to keep clone cartridges out of their offices. Genuine cartridge remanufacturing trade associations help educate the industry and consumers about the value and benefit of using environmentally friendly, remanufactured products compared to clones. Consumers find confidence and peace of mind when dealing with association members. Associations may also provide a resource where consumers can go for help if something goes wrong. Trade associations can help create quality standards for the industry, and can work with government agencies to implement changes. For example, a huge push to move to STMC-certified processes was made by trade associations to great success. Many companies use this certification and others as a marketing tool to suppliers and end users. Association membership benefits can include free specialist advice, particularly of a legal nature, an important asset to have as OEM legal actions against clones can place genuine remanufacturers and their customers in the crosshairs. Static Control is a proud member of many trade associations throughout the world. We feel our partnership with these organizations has been very beneficial to our success. Trade associations have strongly opposed clones, have advocated for the industry in courtrooms around the world and have reached out to related industries to help support the agenda of the genuine remanufacturing industry. They will help forge the road ahead.

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LIFTOUT DIRECTORY

SHANGHAI COMPUTER TRADE ASSOCIATION PROFESSIONAL CONSUMABLE COMMITTEE Zhengxing Xia, Vice Secretary General Shanghai Computer Trade Association Professional Consumable Committee was No.638-3, Xikang Road, Jingan District, founded in 2005, and is the first regional committee of its kind in China. Committee Shanghai, 200040 China aims to work in an environmentally way and partner with enforce departments to Tel: +86.21.5213.7151 boycott counterfeit products. E-Mail: 13661991400@163.com Website: http://www.scta.org.cn/newsDirect.aspx?bid=4&sid=1 ZHUHAI PRINTING CONSUMABLE INDUSTRY ASSOCIATION ZHPCIA was founded in 2007, and is the only printing consumable industry association with the qualification as an independent legal entity. It is the Vice President Organization of China Computer Industry Association. ZHPCIA was awarded Guangdong Province Intellectual Property Protection Pilot Organization and Zhuhai was granted the World Capital of Printing Consumables by China Computer Industry Association.

Mr.Tom Zhang, Secretary General Room 411, No.8, Ping Dong Liu LU, Nanping Technology Park, Zhuhai Guangdong, 519000, CHINA Tel: +86.756.2533.678 Email: info@zh-pcia.com.cn Website: www.zh-pcia.com.cn

EUROPE ART-ITALIA ARTI-Italia is dedicated to the success of the cartridge remanufacturing industry. Supported by Katun Corporation, KMP, Static Control Components, and others, it plans to reach out to OEMs, to create greater awareness of the use of clones, and to stress the importance of “doing business in a fair and transparent way.”

Mr. Giovanni Ravelli, President Tel: +39.3939.834.784. Website: www.ARTI-ITALIA.it

ASSOCIATION OF MANUFACTURERS AND RESELLERS OF OFFICE AND STATIONERY PRODUCTS IN RUSSIA Ms. Tatyana Kalinina, Executive Director APKOR is a nation-wide, non-commercial, public organization which Office 6, Build 10, Marksistskaya Street, 34 Moscow, 109147, RUSSIA unites manufacturers, suppliers and other players in the office and Tel: +7.495.648.9138 stationery products market, whose business is focused on comprehensive Email: info@apkor.ru assistance to development of civilized market of stationery and office Website: www.apkor.ru products in Russia. ASSOCIATION OF MANUFACTURERS OF CONSUMABLES APRM’s main objectives are: promoting the aftermarket for consumables in the interest of consumers; creating a favorable climate by government agencies; promoting fair competition; maintaining an attitude of respect toward the intellectual property rights of original equipment maker (OEM) brands; promoting the ecological benefits to society by the Russian producers of remanufactured consumables. CZECH REPUBLIC REMANUFACTURERS ASSOCIATION The main goal of the Czech Republic Recycling Association (CRRA) is to promote the best companies in the field of toner recycling thereby increasing the quality of services offered to customers. CRRA is the only association of toner recycling companies in the Czech Republic. It locates in the building of the Czech Chamber of Commerce.

EUROPEAN TONER & INKJET REMANUFACTURERS ASSOCIATION ETIRA represents the interests of the inkjet and toner cartridge remanufacturers and related service providers, compatibles manufacturers, etc. in the EU. It works on topics like quality, standardization, provide legal and regulatory advice, public relations, member contact platforms, etc. ETIRA also effectively manages a remanufacturing Code of Conduct and the ticked-R collective mark.

FRANCE CARTOUCHE RÉEMPLOI FCR’s objective is to develop, promote and protect the trades that are based upon the re-use of spent toner and ink jet cartridges in France; combat imported clone cartridges illegal on French territory; organize and lobby for the re-use of cartridges in France, etc.

Mr. Sergei Vladimirovich Chekanov, President Room 3, Building 9, Kronstadt Boulevard 6-p, Metro Water Stadium, Moscow, 109147, RUSSIA Email: id@aprm.ru Tel: +7.495.797.6745 Website: www.aprm.ru

Mr. Henry Mach, Chairman and President Building of the Economic Chamber of the Czech Republic 190 00 Praha 9, CZECH REPUBLIC Tel: +420 602 754 222 Email: info@crra.cz Website: www.crra.cz/gb/gbindex.htm

Mr. Vincent van Dijk, Secretary General Grieglaan 7, 4837 CB Breda, THE NETHERLANDS Tel: +31.6.414.614.63 Email: info@etira.org Website: www.etira.org

Parc d’activités de Tournebride 18 rue de la Guillauderie 44118 La Chevrolière, FRANCE Email: contact@francecartouche-reemploi.org Website: www.francecartouche-reemploi.org

PRODUTTORI ASSOCIATI CARTUCCE TONE (PACTO)

PACTO aims to promote the development of the Italian industry for the regeneration of printing consumables, to safeguard the quality, appearance and performance of these products and to preserve the environment, the ecology and social values.

Via Roma, 24-48027, Solarolo, (RA), ITALY Tel. +39.5465.3250 Email: info@associazione-pacto.it Website: www.associazione-pacto.it www.iRecyclingTimes.com|Issue40

LIFTOUT DIRECTORY

UNITED KINGDOM CARTRIDGE REMANUFACTURERS ASSOCIATION Ms. Laura Heywood, Correspondence Secretary The stated aim of UKCRA is to provide printer users with proven high quality First Floor, Cheethams Mill, Park Street, Stalybridge Cheshire SK15 2BT, products, through its members, that are cost-effectve friendly alternatives to UNITED KINGDOM imported toner cartridges. Tel: +44.1706.759.016 Email: info@ukcra.com Website: www.ukcra.com

NORTH AMERICA BUSINESS TECHNOLOGY ASSOCIATION (BTA) Founded in 1926, the Business Technology Association (BTA) serves office technology dealerships, resellers, manufacturers, distributors and service companies. BTA member dealerships are positioned to be the premier source of the office technology used by businesses throughout the United States every day.

ENVIRONMENTAL INDUSTRY ASSOCIATIONS (EIA) The EIA is comprised of the National Solid Wastes Association (NSWA) and the Waste Equipment Technology Association (WASTEC). Innovation and leadership from the solid waste industry make it possible for Americans to use waste as a source of renewable and sustainable energy in one of two ways: from landfill gas and from waste-to-energy facilities. IMAGING SUPPLIES COALITION The Imaging Supplies Coalition (ISC) is a non-profit trade association comprised of original equipment manufacturers (OEMs) of consumable imaging supplies (ribbons, toner, inks, cartridges, etc.) and equipment that have joined together to protect their customers by combating illegal activities in the Imaging Supplies Industry.

INTERNATIONAL IMAGING TECHNOLOGY COUNCIL (I-ITC) The Int’l. ITC is the only active trade association in North America that is a dynamic organization of imaging supplies dealers, remanufacturers, industry suppliers and consultants advocating for and promoting the industry. It promotes educational and social interaction among member companies in support of the competitiveness and long-term viability of its member companies.

Mr. Brent Hoskins, Executive Director 12411 Wornall Road, Kansas City, MO 64145, USA Tel: +1.816.303.4040 Email: brent@bta.org Website: www.bta.org

Ms. Sharon H. Kneiss, President 4301 Connecticut Avenue, NW, Suite 300 Washington, DC 20008, USA Tel: +1.202.244.4700 Email: skneiss@envasns.org Website: www.environmentalistseveryday.org

Mr. Allen Westerfield, President MBN 249, 1435 East Venice Avenue, #104 Venice, FL 34292, USA Tel: +1.941.961.7897 Email: iscwesterfield@aol.com Website: www.ISC-Inc.org

Ms. Tricia Judge, Executive Director 3157 North Rainbow, Suite 340, Las Vegas, NV 89108, USA Tel: +1.702.838.4279 Email: exec@i-itc.org Website: www.i-itc.org

SOUTH AMERICA ABRECI ABRECI is the Brazilian Association of Cartridge Refurbishers. It was formed by a group of companies that provide high quality products, mostly refurbished, with a cost option attractive to consumers. These companies offer an excellent alternative against imported cartridges while creating jobs in Brazil.

Mr. Oswaldo Devienne Son, President Rua Cel. Xavier de Toledo 210, 9th Andar, Conjunto 91 Centro Sao Paulo, CEP 01048, BRAZIL Tel: +55.11.3120.5626 Email: abreco@abreci.org.br Website: www.abreci.org.br

CÁMARA ARGENTINA DE MÁQUINAS DE OFICINA COMMERCIALES Y AFINES (CAMOCA)

Mr. Hugo Anibal Martty, President Av.Córdoba 950, Piso 6° Oficina "D" Buenos Aires, Capital Federal (C1054AAV), ARGENTINA

Tel: + 54.11.4327.0830 Email: camara@camoca.org.ar Website: www.camoca.org.ar

ASIA-PACIFIC AUSTRALASIAN CARTRIDGE REMANUFACTURERS ASSOCIATION ACRA is an association of remanufacturers who will provide you with a high quality, fully remanufactured toner or ink cartridge for your printer with a full 100% money back guarantee.

Mr. David Campbell, President P.O. Box 936, Parramatta NSW 2124, AUSTRALIA Tel: +61.2.9687.3399 Email: info@acra.asn.au Website: www.acra.asn.au

We’ll publish the directory of Print Testing Labs in next month’s Recycling Times magazine. If you want to included, please send your company profile details to Ms. Violien Wu at violien.wu@irecyclingtimes.com. See our directory publishing plan on p23.

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NEXT ISSUE

FRONT COVER STORY

ETIRA's Achievements Over 10 Years This non-exhaustive list highlights key strategies or achievements by European Toner and Ink Remanufacturers' Association (ETIRA) Date

Achievement Launches “Recycled” brand press pack

2002

Reworded WEEE Directive to include remanufacturing process Lodged application for European Association Founded European Toner and Inkjet Remanufacturers’ Association—ETIRA Lobbied on Integrated Product Policy and WEEE Directive

2003

Launched website: www.etira.org Implemented a Code of Conduct for members Adopted “R” ETIRA logo Lobbied DIN Standards to adopt EU wide cartridge standard

2004

Lobbied European Parliament to endorse remanufactured cartridges Enlisted the first 50 companies from 16 countries as ETIRA members Debated politically the EuP on the energy savings delivered from remanufacturing Drafted wording for EU policy on waste management Fought HP over false advertising in Germany to consumers about cartridge remanufacturing

2005

Fought the Hungarian government over excluding remanufacturers from office supplies tenders Lobbied to seek accreditation with European Committee for Standardisation (CEN) on a new standard for remanufactured cartridges Opposed a Europe-wide patent for remanufacturing inkjet cartridges for being anti-competitive Lobbied the EU Commission to challenge the OEMs use of smart chips to prevent remanufacturing

2006

Assisted remanufacturers to apply for office supplies tenders in Czech Republic and Romania Protested to the German government over restrictive tendering practices for office supplies Lobbied the EU’s waste transport law Commenced the development of a standard to compare remanufactured and OEM cartridges

2007

Supported the EPOs decision to reject Epson’s refilling patent Convinced the EPO to revoke a Canon patent relating to removal of adhesive residues ETIRA’s membership are now caring for 60% of the aftermarket supplies in Europe

2008

Convinces the Catalan government on the quality of ETIRA members’ remanufactured products Lobbied to allow more empty cartridges to be shipped between EU countries without prior written consent Proposed changes to the EU eco-labelling program to include remanufactured cartridges Lobbied EU leaders in Brussels over the exclusion of cartridges in the EU eco-label program Lobbied British MPs over the anti-reuse schemes undertaken by the OEMs

2009

Called for scrapping of ‘waste shipment’ classification and more flexibility in shipping of empty cartridges across borders Lobbied the EC, NGOs and EU government officials on the desirability of cartridge design for re-use Produced a position paper on reducing carbon footprints by reusing empties and avoiding lock-out microchips Lobbied the EPEAT standard to have more workable criteria for imaging equipment to include non-OEM cartridges Officially opposed HP patents for refilling inkjet printer cartridges

2010

Denounced and had removed a false statement about the voiding of printer warranties in OKI printers Worked with parliamentarians to block an EU tender which had excluded remanufactured printer cartridges Lobbied EU parliamentarians to agree used printer cartridges are non-waste Filed complaints to see Slovenian government tenders modified to include remanufactured cartridges Provided input to the green paper on modernization of EU public procurement policy

2011

Met with OEM representatives to discuss the criteria for EU eco-labeling to help consumers identify environmentally friendly products Persuaded the EU that remanufactured cartridges are crucial to cutting the environmental impact of printing Lobbied German local government to exclude new-built cloned cartridges due to patent infringement risks Supported French remanufacturers meeting with government and OEMs on Grenelle waste treatment laws

2012

2013

Rewrote the members Code of Conduct to include prohibition to trade patent infringing newbuilts Developed working groups to fight ant-remanufacturing smart chips, watchdog on public tenders, and lobbying Updated Code of Conduct for members Relaunched new look etira.org website

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SECURITY

Securing Output Devices is No Longer a Simple or Singular Process Robert Palmer

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SECURITY

Security is a major concern for all companies these days. In fact, it consistently ranks high on the list of top IT concerns among businesses of all sizes. Security today involves everything from securing computing devices to protection of data, networks, and processing power. These issues have become even more complex due to the ongoing shift to mobile technologies and cloud-based computing. The Bring Your Own Device (BYOD) phenomenon is creating significant challenges for IT departments that need to secure multiple device platforms while managing access to corporate information. Meanwhile, computer processing and content is moving to the cloud, while mobile and devices even after it was removed network devices are increasingly Today, virtually any device that is from service. That issue has mostly enabled to support downloadable attached to the network becomes been resolved through the use of applications and Web-based content. Today, virtually any an access point to business assets data encryption and built-in image overwrite features and policies. device that is attached to the and corporate information. Even so, access to sensitive network becomes an access point corporate information through the to business assets and corporate document, securing access to content on printer or MFP that is attached to the information. the device, and securing access from the network remains a serious security riskâ&#x20AC;&#x201D; This is certainly true for printers and device to content on the network. especially with the advent of mobile MFPs, and securing these devices has devices. The threat comes not only from become much more complicated in data that is stored in the device itself, but High Profile Threats recent years because these machines can it can also involve print jobs that are sent no longer be viewed simply as output Several issues related to printer and to the device and printed, only to be left devices. With embedded Web browsers MFP security have reached high profile unattended in the output tray or perhaps and hosted applications, printers status, garnering significant interest from never retrieved. and MFPs have become information both press and customers. In 2010, a To address this issue, most hardware management devices that provide an CBS news story unveiled the significant vendors have implemented various on-ramp and off-ramp to the network. threat posed by copiers and MFPs that secure print features. Depending upon Security now encompasses many use embedded hard drives to archive how it is implemented, print jobs can be different aspects in the printer/MFP print jobs. In some cases, sensitive stored safely in the device itself and can world: securing the device, securing the corporate information remained on those

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32 FEATURE

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SECURITY

only be released with a PIN or access mobility puts additional pressure on provides access to data through an code that is entered at the front panel of businesses to look more closely at authentication process. This would the machine. Many Pull-Print features users and usage behavior. As mobile allow for a more transparent approach to offer the added security layer of storing devices become more prevalent in data security while limiting the impact the print job in the cloud so that it can be the workplace, employees themselves on the end user experience. Basically, released at any enabled device, again by become a significant security threat. It is users would only be allowed access to entering a specific access code. not necessarily a malicious or intentional the data for which they have the proper One of the more significant threats threat, but individuals are increasingly authentication credentials. receiving a great deal of This same approach could be applied attention recently is the ability to securing content accessible from Security will continue to be a the printer or MFP. Ultimately, this for hackers to take control of network printers and MFPs to focal point for customers and could create a more seamless approach either gain access to sensitive limiting the number of security vendors alike as printing devices by data or even attack the layers on the device itself and instead continue to evolve into fully network. Basically, printers protecting access to the content. Either can be breached by embedding way, security will continue to be a enabled network devices. malware in a print job or even focal point for customers and vendors by plugging a USB stick into alike as printing devices continue accessing corporate information from the printer itself. Once the machine is to evolve into fully enabled network devices located outside the firewall. infected, it could be used to monitor devices. â&#x2013; At the same time, those devices are network data, infect other devices on the Robert Palmer is an independent market being used to send potentially sensitive network, or launch other attacks on the analyst and industry consultant. With more information to and from various cloudnetwork. than 20 years of experience in the printing based applications. Vendors are deploying various industry, he has covered technology and Obviously, this makes security a methods to deal with this type of threat. business for prominent market research very difficult thing to manage. Many Xerox, for example, has partnered with firms such as Lyra Research and InfoTrends. businesses are adopting corporate security expert McAfee to actually He was managing editor of the Hard Copy security and BYOD usage policies to embed security technology into its Observer for six years and more recently deal with these trends, but the longMFPs. The solution works by utilizing served as director of office document term solution may be to look beyond whitelisting technology to create an services for Photizo Group. the device. Indeed, there is a real need approved list of software parameters, Mr. Palmer recently formed for securing access to information and thereby only allowing approved software Palmer Consulting as an managing the distribution of corporate to run on the device. independent consultancy data. focused on transformation, The best approach will likely come Securing Content mobility, MPS, and the from the ability to secure the content While securing network devices entire imaging market. itself, by building a layer on top that has always been a focus, the shift to

Bob Palmer will focus on the ink vs toner battle at the Conference@2013 at the Holiday Inn Zhuhai, China on October 16. www.iRecyclingTimes.com|Issue40

34 OEM NEWS HP India Moves to Boost Entry-level Printer Market Hewlett-Packard India has introduced a new Series of feature-rich inkjet printers with prices ranging from Rs 8,000 (US$140) to Rs 51,000 (US$900). HP is rolling out a multi-channel advertising and marketing campaign across print, digital, out-of-home and point-of-sale outlets so as to grasp the value proposition of its new range printers for the target segment. About 90% of consumers used their printers for black and white (B&W) images. “Customers in this segment largely

compromised on features and functionalities to fit them into their budget,” says Nitin Hiranandani, Director of Printing Systems, Printing and Personal Systems, at HP India. Read more: bit.ly/12cZRs6 ■

HP Reports Strong Performance in Printing HP has announced its financial results for the second quarter of 2013. Net Printing revenue was $6.1 billion, a 1% year over year (YOY) decline with a strong operating margin of 15.8% which was $958 million. Total Hardware units were down 11% YOY. Commercial Hardware units had a 5% YOY decline, and Consumer Hardware units decreased 13% YOY. Meg Whitman, HP President and CEO said, “We sustained the strong

performance we saw in the first quarter with margins in 2Q2012 of 15.8%, up 2.6 points over the prior year. We are seeing business initiatives like Ink Advantage gain strength in the market and demand for new products like the Officejet Pro X outstripped supply in the quarter, despite ramping our production 32% faster than we'd planned.”

Ricoh UK to Partner with Ricoh France Ricoh UK, with 900 workers in Telford, plans to work with its sister company Ricoh France, in Clamart, until July to find out whether production can be streamlined. The Telford factory, established in 1985, was growing in its new, machine recycling and magazine printing businessess. However, there was a decline in its office machine manufacturing operations. Ricoh aims to capitalize on the strengths of the two factories, for the greater good across Europe. The company targets are: maintaining a strong global business, adding customer value, providing highquality technologies and maintaining a streamlined and efficient organization. Read more: bit.ly/17wwkRg ■

Read more: bit.ly/16ZuPdo ■

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OEM NEWS Brother Establishes Strategic Distributor Partnership Brother International (Gulf) FZE announced the signing of a strategic distributor partnership agreement with Hoshan Company Limited (HCL), a leading integrated workplace solutions provider in the Kingdom of Saudi Arabia. Under the terms of the agreement, HCL will offer Brother's wide range of Printing & Solutions products including Color laser and Monochrome laser Multi-Function Centers (MFCs) and Printers and A3 Inkjet Multi-Function Centres (MFCs) & Scanners

Samsung Printers Recognized by Buyers Laboratory

through its 22 sales offices and showrooms across KSA. y Industry experts point out that the country's ies growing preference for print technologies has created more business opportunitiess for printing technology vendors. Read more: bit.ly/18PYeHG ■

Domtar Completes Acquisition of Xerox’s Paper Business Domtar Corporation, a North American paper giant, announced that the company has completed its acquisition of Xerox’s paper and print media products in the United States and Canada. According to the acquisition agreement, Xerox has sold to Domtar $275 million

ng (USD) worth of paper business, including a range of coated and uncoated grades, and ng specialty products including business forms and wideformat papers. In March 2012, Xerox announced the company decided to sell the paper business to Domtar as it aims to focus more on services and document technology. Read more: bit.ly/18Q1xP0 ■

Buyers Laboratory has awarded Samsung Electronics America three 5-Star Ratings and eight 2013 “Pick Awards” for its A3 and A4 MFP devices and the network device management solution. Products awarded include CLX-9251NA, SCX-8128NA, CLX-9201NA, CLXSCX 9301NA, SCX-8123NA, CLPCLP-680ND, CLX6260 6260FW and Sync SyncThru Admin 6. BL Pick BLI’s Award are given Awards to hard hardware and softwa provider by software printing in-house ding the best pperformance in compre comprehensive evaluations. The company tests for toner/consumable yields, runnability with recycled paper, energy consumption and cost, recovery time, noise emissions and environmentally friendly features. Read more: bit.ly/13fzBzo ■

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E009

ENVIRONMENT

e-Waste Recycling Program Launched aunched Charlotte County’s new Curbside e-Waste Recycling program has collected a mound of printers, computers, television sets and stereo equipment. Individual residents can dispose of their e-Waste free through a new county program. Businesses must pay $35 for a pick-up of commercial e-Waste and $15 for second items picked up on the same day. Charlotte County will likely be one of the first American communities to make e-Waste recycling easier for residents and businesses. Its e-Waste collection volume will probably exceed the American average. Read more: bit.ly/12aR5Ab ■

Color Recovery Offers Waste Toner Solution Color Recovery of Maastricht (The Netherlands) announced that it can reduce the carbon footprint for remanufacturers of toner cartridges in Europe. The company’s new Certified

Programme ensures “100% quality control” is maintained during the remanufacturing process. Color Recovery is offering the Certified Programme to cartridge remanufacturers and recyclers for what it claims is a “reasonable fee”. The programme can be used in marketing strategies for selling remanufactured toner cartridges. The company adds that the programme will also offer a legitimate and sustainable contribution towards reducing the “carbon footprint”. Therefore, it can be regarded as a “favorable step” towards environmental, local and federal regulations in Europe. Read more: bit.ly/1apLbcq ■

45,000 Tonnes e-Waste Collected Since the State of Wisconsin launched an e-Waste recycling program in 2010, Wisconsin has collected more than 100 million pounds (45,000 tonnes) of e-Waste. The E-Cycle Wisconsin program bans the illegal disposal of e-Waste, including printers, computers, TVs and cell phones in landfills and incinerators. This law forces manufacturers of certain e-products to be responsible for

collecting and recycling e-Waste from Wisconsin households and schools. The US Environmental Protection Agency reports that nearly half of the states now have laws on the disposal and recycling of electronics. Besides, some other states plan to make similar laws. E-Cycle Wisconsin also reported on the difficulties of the program. Many Wisconsin residents are unaware of the law, and some are still disposing e-Waste illegally. Read more: bit.ly/114RH75 ■ www.iRecyclingTimes.com|Issue40

38 REGIONAL NEWS

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REGIONAL NEWS

39 Improving Business Efficiency with Managed Applications

SOUTH AFRICA Carbon Tax Proposed

• The National Treasury has released a carbon tax policy paper giving details of a proposed carbon tax, which could be implemented on 1st January 2015 in South Africa. The policy proposes a carbon tax rate of $13 per tonne of carbon dioxide equivalent. The proposed carbon tax will only apply to direct emissions also known as Scope 1

Sand Sinclair, Editor-in-Chief, imageSource Magazine emissions. It is also expected this carbon tax rate will increase at a rate of 10% per annum.

AUSTRALIA What a Waste!

Largest MPS Market

• Australia’s electronic waste is growing at three times the rate of general waste. The cost to dispose and process e-waste has risen over recent years and has led to a lot of it, including empty toner cartridges, to be shipped overseas to be dismantled and disposed of, as a more cost effective solution.

• The managed print services (MPS) market in Australia is now the largest in the Asia pacific region and is worth over US$350 million a year in revenue terms. Even Japan with 6 times the population at 127 million people, has a smaller MPS market than Australia.

EUROPE Made in Spain

MPS takes off

• More than 100 Spanish and Portuguese remanufacturers gathered in Madrid to develop a strategy to survive the attack of clone cartridges. The “Made in Spain” seminar, organized by Spanish supplier Interconsumibles, also looked at other opportunities including CISS and MPS and was packed with technical presentations, from inkjet refilling tools, to how to remanufacture different laser cartridges.

• According to a survey by Consumibles e-Magazine, Managed Print Services has become a significant way distributors and resellers do business. 18% are already offering some kind of MPS program to their customers and 46% plan to do so before the end of the year. The main barrier for those not entering the MPS market is “the lack of affordable and reliable software”.

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In the USA, we are always looking to stay on top of emerging trends that produce optimal change in our business or organization. We want to ensure the value found in a collaborative work environment, use the mushrooming electronic technologies to manage or interact with our customers, and often, rely on 3rd party providers to help us maximize a solution. Among the myriad of solutions in the office sector today, many U.S. providers seek programs that incorporate the Cloud or SaaS (Software as a Service), those managed application hosting services that give us advanced e-commerce capabilities, larger storage space, enterprise e-mail, and more. We want seamless integration with existing systems, Web and email access through any Internet connection (or wireless); seek to avoid downtime due to integration, while increasing our capacity to manage projects. We want to improve employee productivity, enjoy mobile access to any needed information, and of course, expect to easily control accessibility while expanding e-commerce options overall. We also are aware that cloud deployments can often get derailed by unanticipated complexities such as integrating cloud with existing technology that may not work optimally together. So the need for a unified network infrastructure for all applications — whether on-premises or in the cloud, must be seamless, which means using a best-in-class cloud and network service provider; one that will minimize the risk of a fragmented, multi-vendor mix of networks, complex technologies, problematic issues, etc. In my opinion, by seeking a credible world-class consulting service and/ or partner to help us optimize our infrastructure, we can be assured to safely incorporate a host of new office technologies into our business today. How about you?

RESEARCH

MY VIEW

Trade Associations Ed Swartz Founder and CEO Static Control Components, Inc.

Eliminating new-built/clone cartridges from the imaging aftermarket is the most important issue trade associations are tackling. Many associations no longer accept businesses that sell or manufacture clones as members. Some organizations have taken it further: ETIRA has published a “Guide to Clones” document and are participating, along with CRRA and others, in the upcoming clone-free R3 conference in Prague. Trade organizations everywhere should work together to educate government agencies and end users of the negative environmental impact and the questionable legal status of clone cartridges.

Luke Goldberg Senior Vice President MSE Global

The most critical aim of Trade Associations at this time should be aligning OEMs and OEM associations toward the common goal of thwarting the influx of potentially infringing clones into global markets. These clones damage both OEM and aftermarket companies in many ways. Trade Associations are starting to make headway in engendering communication and dialogue that will serve to benefit both parties in their attempts to stem the tide of clone cartridges.

The Two Biggest Su and the Trends Driv Five years have past since the great recession of 2008, and the market for printing supplies has not recovered. Instead, the recession caused an almost immediate 10% decline in overall print volume in the U.S. market, with a similar decline in Western Europe, causing a loss in jobs. It was hoped, the recession would not last long and the economy could find room to rehire those office workers who produce the pages that consume toner and ink. While some of that employment has come back, and the demand for paper, toner, and ink rebounded slightly, that rebound was small and short. We are now in a period of flat to very slow decline in print volume and the consumption of supplies. The market will never return to levels achieved in the peak year of 2007. Market Forecast Ongoing concern about costs and a double dip recession have kept up the pressure on companies to cut costs where possible. One of the most impactful of those efforts was managed print services (MPS). The single most important impact that MPS has had on the supplies market has been to reduce print volume. Even when print volume may have otherwise

risen, MPS halted that rise. On the heels of MPS came the impact of mobility, and an associated learning on the part of those workers to “get along” without paper and use small screens. It’s not that offices do not like using paper, but paper is not an efficient way to communicate data. Digital processes make far fewer mistakes within the process. Therefore, the result is that the U.S. and Western European supplies market are big and flat to declining. There are also very serious concerns for the economy in Western Europe (especially in the south), which cast a cloud on any prospects for a steady market in the region. OEM and Aftermarket Trends Despite the poor outlook in these regions, there are still a few interesting points to be made in regards to OEM supplies versus the aftermarket. Overall, OEMs enjoy relatively high loyalty rates for OEM/original brand supplies. OEM supplies represent 85% of toner and other cartridges used by electrophotographic devices. Third-party supplies have only 15%. While this may be surprising, given that the B&W laser cartridge market has a noticeable aftermarket supply use,

José Bustamante Director Consumibles e-Magazine

The main objective of trade associations should be to promote the use of remanufactured cartridges by highlighting their advantages, What namely, protecting the is the most environment and the important local economy. activity, goal or objective our Trade Associations should focus on at this time? Read features on p14 & p24 Issue40|www.iRecyclingTimes.com

U.S. and W.E. Marking Supplies for EP Copiers, Printers, and MFPs

RESEARCH

upplies Markets ving Them

InfoTrends

factoring in color and supplies used in copiers reduces third-party supplies to a rather modest level. The single most important thing that OEMs can do to protect their original supplies share is to shift the customer to color, where the aftermarket continues to have problems of quality or reliability. While there may be small ups and downs in aftermarket penetration, depending on new machine introductions or new lawsuits, this share is largely where it will stay. Remanufacturing is a significant part of this market, with HP products being a large part of that. There are also cartridges for use in other printer brands, including Lexmark, Brother, Samsung, Xerox, Dell, and Oki. Historically, the trend has been that if the OEM cartridge is of the all-in-one (AIO) style (i.e., toner and drum in one single cartridge unit), the aftermarket has focused on remanufacturing it. For those products that separate the drum from the toner cartridge, however, the toner has tended to be in a new build compatible— described as a “clone” by many in the market. The new build compatibles (i.e., clones) have been gaining share in the sectors of the market that have previously been dominated by remanufactured cartridges. These clones—often made in China—can be very low cost. Remanufacturers do not want to compete with clones any more than the OEMs, and the remanufacturers are also afraid to deal with clones which may have patent violations that will land them in legal trouble. Alternately, there is a market for toner separates, which is already mainly clone or at least new build compatible in the United States. Because of significant changes in the ability of the aftermarket to collect sufficient quantities of empty OEM cartridges over the years, we see a reverse trend as the remanufacturing is taking some share from clone in that sector. This is largely made possible by

the big resellers in the channel who are increasingly worried that clones contain a legal patent risk and so have been asking for and have made it possible for the remanufacturers to reliably collect the empties needed to ensure a consistent supply of reman separates. Electrophotography in the U.S. and W. Europe The U.S. and W. European supplies market are huge and seeing flat growth at best. OEM and aftermarket vendors, however, want to grow their shares of these markets. IP protection is perhaps the best defense that OEMs have— as well as the ongoing shift to color devices, where aftermarket share is still considerably lower. OEMs can also hold off the aftermarket by controlling the channel. This is what they have been doing on the copier side. OEM MPS plans are another way to attempt to do that on the printer side, as well. Aftermarket suppliers have the advantage of lower prices, which has allowed them to gain share in color. Nevertheless, technology and IP barriers have plagued aftermarket suppliers on the color side. While those issues are being addressed one step at a time, the channel has yet to be convinced that aftermarket color suppliers will not create quality and reliability headaches down the road. In addition, the IP issue and the looming clone issue, which involved significant questions on IP, has not yet come to a head. InfoTrends expects that there is much turmoil ahead for OEMs and aftermarket on the clone issue before it can be settled. ■ For more information about the forecasts in this report, as well as new research that InfoTrends is currently conducting on the size of the clone cartridge market in the U.S. and W. Europe, contact Scott Phinney at Scott_Phinney@infotrends.com.

Edward F. O’Connor Esq., Chairman The Eclipse Group

Today’s legal issues demand that Trade Associations work together. The Jazz Photo case has been a real problem for cartridge remanufacturers because its doctrine, the repair reconstruction doctrine (which I pioneered), has been severely undercut. Most small companies who were improperly sued under Jazz Photo, do not have the economic resources to defend themselves. Trade Associations can help by consolidating their resources and raising sufficient funds to defend one of these cases. Winning a test case would put the Jazz Photo vampire in its casket with a silver stake through its heart.

Cassio Rodrigues Consultant Xaar´s LAM Branch Office

This is the perfect timing for remanufacturers to take action, to show the high quality of remanufactured cartridges, and to invest all efforts in teaching rechargers the correct reman procedures and and print test protocols. It should also be stressed that remanufacturers choose the best quality raw materials (drums, inks, toners, components). End users should be informed that our products are viable, environmentally friendly and meet the high quality standards they expect. I think trade associations should unite and educate remanufacturers to achieve these.

Joseph Wu President, Green Project

Our trade associations should continue to focus on the legal aspects of our industry both on the macro and the micro levels. Since our industry is always being attacked, education by our trade associations for our industry provides key knowledge that not all What companies have access is the most to. Therefore, this important information is activity, goal or invaluable. objective our Trade Associations should focus on at this time? Read features on p14 & p24 www.iRecyclingTimes.com|Issue40

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PEOPLE

5 QUESTIONS Where Have You Been?

Industry Veteran Phyllis Gurgevich Joins Recycling Times You ended a 13 year run at Recharger Magazine in 2007? What have you been doing since? For the past 6 years I’ve worked with clients on digital workflow solutions, records and information management programs and document security. Currently I’m extensively involved in workflow and business process optimization. But I've kept in touch with the remanufacturing industry during this time. I’ve consulted in the areas of marketing, business development and events for some remanufacturing companies. I look forward to renewing more relationships and meeting the newest professionals engaged in leading the industry. Are you surprised with the reshaping of the industry? What have been the biggest changes in your view? Honestly, I’m surprised as much by what has not changed, as I am by what has. What hasn’t changed is the industry’s will to exist against the accelerating technological barriers, the use of the legal battlefields and the under-educated buyers. One of the biggest changes is a renewed focus on local and regional markets. While the initial move toward global seemed almost frenzied, the industry seems to be settling in with the realities of what “global markets” really are and which parts are global and which remain local. There is no doubt that our industry is a global industry, and every business, regardless of geography, can learn from and support one another.

What about the issue of patent infringing cloned cartridges? It can be summed up as questionable product and negative stigma. The industry has continually suffered and fought against these issues since the beginning. I don’t see that changing: it remains imperative to educate yourself on issues and to continue to educate the general purchasing public on the benefits of remanufactured product. How does the document storage, work flow and business process optimization industry work? It assists businesses with creating records and information management programs. We get inside our client’s work flow and ask a lot of questions: what defines a record, how long should it be kept, are there confidentiality issues, and what regulations must be observed? This helps create customizes and automates process for them, making their businesses more efficient and financially viable. The offsite storage of hard copy archives is secure and meets compliance standards, allowing clients to use their own facility space for their core revenue generating activities. We also help our clients routinely and securely destroy archives that have met retention. What potential relationships could exist between printer consumables and records betwe information management? and in They are separate industries, however there are synergies. The remanufactured imaging supplies synergi industry serves document printing—however from another perspective, supplies providers are actually supporting the process of information being saved support to ppaper. There may be opportunities. For example: a remanufacturer with space in a ex llarge warehouse could offer archive storage for clients. Or they might consider a service fo to convert a company’s inbound paper processing to an electronic work flow. Or it pr may be as simple as developing a relationship ma with a local records management firm and sharing leads and referrals. Phyllis Gurgevich has served the printing consumables industry as editor of Recharger Magazine and organiser of the World Expo. This month she joins Recycling Times as Consulting Editor

PEOPLE on the move, obituaries, special achievements

Italy Occupied, Again Top Italian salesman, Francesco Garulli has joined German-based cartridge component supplies giant, Delacamp, as its new Account Executive for Italy. He will focus on the operation and further development of the important Italian customer base.

Information Expert to Explore the World Mr. Anthony De Angelis—who has more than 25 years of IT experience as Director of Technology at HP—has just been appointed Global Information Officer at Static Control Components in Sanford, North Carolina. He will be responsible for providing insight and leadership in Static’s global business initiatives.

Back into the Channel Mr. James Buck—who has worked in the print industry for 20 years—has rejoined OKI Data Americas as National Director for U.S. Managed Print Service and Business Technology Association Sales. He will lead the organization’s channel engagement strategy and focus mainly on channel growth.

Off to Kindy After what she describes as 7 interesting and turbulent years at Pelikan Hardcopy Production AG, in Switzerland, Derya Arnet has left to spend more time with her little daughter who starts kindergarten in August.

OEM Boss Joins the Aftermarket Sector VP Sajeevan—who was a Director in Canon for over 14 years in Haryana, India—has been appointed as the CEO of ESYINK., an aftermarket supplier of CISS. He will be responsible for establishing the ESY brand in India using his 25 year experience in sales and marketing.

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TECH ZONE

Mike Josiah

Epson LPS-5000 Toner Cartridge The Epson LPS-5000 cartridges are rated fo for 00 pages black and col 6,500 color. The OEM numbers are LPC LPCA3T12K Black, LPCA3T12C Cyan, LPCA3T12M Magenta, and LPCA3T12Y Yellow. There is a chip that must be replaced every cycle. This is a continuation in a series on easy to do color and monochrome cartridges you may be passing up but shouldnâ&#x20AC;&#x2122;t be. They represent some of the best profit opportunities currently

in our industry. These cartridges are all very simple, and with a good majority of them there is nothing to test! Training is minimal and in all cases the time needed to do them is very small. For the purposes of these articles, we will not be going in depth but to be honest there really is no need. Some use chips while some do not. Some have waste chambers and others are purely a supply hopper. All of this will be covered. Read more: bit.ly/ZsufQF â&#x2013;

LOOKING FOR STEP-BY-STEP GUIDES FOR CARTRIDGES? Mike Josiah's popular toner cartridge procedures will be available online later in 2013 as a library of more than 400 cartridge models. This service will be provided exclusively to Recycling Times Media readers by UniNet Imaging: www.uninetimaging.com

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MONEY FROM HOME

Art Diamond Back in the 1880s, it was silver that enabled George Eastman to realize his dream of bringing photography to the masses. He accomplished this feat by coating a light-sensitive silver salt onto a transparent film base. The coating was a gelatin emulsion of silver halide grains. Roll film photography went viral and Eastman Kodak’s rapid growth is history. Kodak became the world’s largest consumer of the precious metal. For more than 100 years, silver halide imaging and photography remained the primary means to capture images and served a myriad of applications in business, industry, commerce, journalism, medicine, military, amateur and professional photography. Chester Carlson’s invention of electrophotography in 1938 planted the seed of a new generation of imaging processes that evolved from office copying and printing to digital imaging. Although Kodak scientist Steve Sasson invented the world’s first digital camera in 1974, Kodak remained focused on its lucrative roll film business. It took some time for converging imaging, computing and communications technologies to make digital photography a practical and affordable reality, but by early in this century, silver-based photography was being rapidly displaced by electronic imaging systems, including cameras designed around charge-coupled devices (CCDs) and complementary metal oxide semiconductor (CMOS) pixel sensors. Kodak’s film-making infrastructure around the world was consolidated to a much smaller footprint at Eastman Business Park in Rochester, N.Y., the site of Eastman’s original film factory. Although the shift to electronic imaging systems was well under way, Kodak continued to focus on innovation and deposition technologies. Kodak scientists found that a novel, transparent toner containing a small percentage of a silver salt, could be deposited as a thin invisible layer on paper, film or fabric. A naturally occurring metal, silver is a broad spectrum

Look for the Silver Lining Leveraging the heritage and the intellectual properties developed over the past 100+ years, Kodak continue to identify ways to commercialize that proverbial “silver lining”.

biocide toxic to bacteria including: E.coli, salmonella, staphylococcus, MRSA (the flesh eating bacteria) and fungi, but at the levels present in these coatings, is safe for human and animal contact. Experimental coatings proved effective as an anti-microbial layer, opening up a universe of applications that shows great promise in shielding humanity from the transmittal of diseases through skin. It also provides protection against organisms that may damage or destroy the article itself, such as, mold, mildew and odor creating bacteria. Depending on the techniques by which these new technologies are deployed, the effectiveness may be single or limited use or may offer longer periods of effectiveness. At Kodak, Dr. Tomas McHugh, General Manager, Materials Technology & Business Development, leads the antimicrobial toner R&D team. End use applications are mind-boggling. They extend from hospital gowns and bed linens to restaurant menus and magazines that circulate from patient to patient in a doctor’s waiting room. Wherever a person can transfer a disease to a surface destined to contact other humans, the anti-

microbial toner layer affords protection. With patent applications now filed, Dr. McHugh’s team is pursuing these end uses by formulating anti-microbial toners for Kodak’s electrophotographic printers and high-speed digital presses as well as inkjet printing techniques and more. Silver fueled Kodak’s initial growth more than a century ago. Today, Kodak is transforming its business model around unique and innovative technologies in commercial, packaging and functional printing businesses. The silver-based technologies could develop into a niche business that could complement those key businesses. Leveraging the heritage and the intellectual properties developed over the past 100+ years, Kodak scientists and engineers continue to identify ways to commercialize that proverbial “silver lining”. ■ Art Diamond is a 56-year veteran of the imaging industry. He is a known globally as a chemist (Kodak), patent holder, author, researcher and consultant, publisher and event manager. <drc@west.net> www.iRecyclingTimes.com|Issue40

48 ACTIONABLE INSIGHTS

Charles Brewer

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ACTIONABLE INSIGHTS

Charles Brewer Hardcopy Business Looking Up While it’s far too early to say a full-blown recovery is underway, I’ve been seeing some signs lately that things are looking up. While it’s far too early to say a fullblown recovery is underway, I’ve been seeing some signs lately that things are looking up. Hewlett-Packard’s CEO Meg Whitman said recently that she was feeling “really good” about her firm’s printer business although it remains flat at best. Moreover, various Japanese manufacturers including Konica Minolta and Ricoh delivered a strong finish to their respective fiscal years, which ended on March 30, and are projecting more growth to come in the upcoming year. In addition to some good news from the OEMs, recently released paper consumption data from certain geographies support the notion that the hardcopy industry is strengthening. It seems that negative trends experienced over the past couple of years are being reversed. Paper consumption fell sharply in North America and Europe as well as in other regions a few years ago. Prior to the dramatic nosedive in paper consumption, for more than a decade the industry had been experiencing more modest—but consistent—annual declines. In total, market data suggested that office users had been moving away from hardcopy for years and with the rise of new technologies like smart phones and tablets the situation was only going to keep getting worse. But that may be changing. Recent data from Resource Information Systems Inc., better known as RISI, shows that office paper consumption in the United States has moderated over the past two years. While no regrowth is forecast n the near term, the trend suggests that the market for hardcopy is not declining as severely as it had been. In May, the Pulp and Paper Products Council (PPPC) separately released

its own data points, which supported RISI’s observations. The PPPC said for the month of April, overall demand for North American printing and writing paper products, which includes the majority of office papers, was down less that 1% and shipments were down slightly more than 1%. Reports from Xerox also suggest that printing is on the rise. Xerox tracks the number of digital pages printed by its customers. The firm said print volumes were flat in 2007 and 2008, and then reported steeper declines of 6% in 2009 and 4% in 2010. Over the past two years, however, the declines have moderated to an annual rate of approximately –2%. The biggest factor currently driving increased paper consumption and improved sales for OEMs is the brighter white-collar employment picture in the U.S. Print volumes are growing along with demand for new hardware as businesses re-staff and office workers return to their old jobs. Recent estimates indicate that U.S. white-collar employment is returning to levels not witnessed since during 2008. While all this news suggests that improvements are underway in the hardcopy industry, I must caution that there is still plenty of room for concern. The thing that I find most worrisome is, regardless of the increased numbers of office workers, OEM sales and supplies consumption have not returned to levels we saw in the U.S. during 2008. New electronic devices must be having some

negative impact on hardcopy demand. Managed print services are also likely a factor driving consumption levels lower. All that does not auger well for the industry. The recent improvements that Japanese hardware manufacturers are enjoying in revenue also may be misleading. The improved financial picture at these firms owes a lot to a weaker yen so it may be that OEM financials are not accurately reflecting the market.

Despite these concerns, it’s great to be able to report some good news for a change. Now whether or not the news will remain good in the long term remains to be seen. ■

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 <cbrewer@action-intell.com> www.iRecyclingTimes.com|Issue40

KEEPING UP

Steve Weedon Moving From Failure to Failure Quickly Ultimately Brings Success It is often said if you don’t want problems, don’t get into business. A sanity check is always prudent before embarking on the greatest business idea you have ever had. It starts of course with the first person you talk to. Invariably, a wife, husband, parent, friend or mentor, who, not privy to all those thoughts you have been carrying around, throw all sorts of questions and doubts at you. It’s a great litmus test because if you can answer all these questions and overcome self-doubt you probably have the basis of making something happen with your clever idea.

Conventional wisdom dictates that the next thing you need to do is create a five-year business plan. A document that outlines and describes what you will do, how you will do it, the costs involved, the profits to be made and the cash flow requirements. It’s a daunting task, a monumental undertaking that

takes countless hours to put together. It’s a fictional piece, an in-depth exercise from the outpourings of your brain, putting down on paper everything you can think of that will impact your business in the first five years—normally written, in isolation without consultation with anyone who could pour cold water on your “baby”. Once the five-year business plan is finished

and you have made it look presentable you can take it off to the bankers and show your potential investors. A business plan is the glue that holds your ideas together whilst sorting out the banks and the investors. The substance of the idea is now on paper for all to read. The process makes you think

logically about every aspect of the venture and what can happen that could cause the venture to derail. But its use is no more than a brochure, a program that you will buy at the theatre that supports the main event or a résumé that supports a candidate at an interview. The business never runs to the plan, and the answer to your first business problem won’t be in the business plan because you didn’t think it would be a problem. It is often said if you don’t want problems, don’t get into business. So why waste all the time and effort to write such a detailed business plan

when the business never runs to plan and the bankers and investors that you wrote it for only scan through it and ask a few random questions. Ultimately like any job interview, it’s you they are interested in. Conviction, passion, rationale, energy, logic, knowhow, experience, drive, enthusiasm and ambition, are what they measure and all that are not in the business plan. Now it seems all the conventional ways of launching a business may be changing. More graduates leave university with a business already up and running, their tutors encouraging them to think small and test each ‘idea’ out, one small step at a time: learning from what they get wrong and finding a new path quickly. They talk to consumers long before they prototype and spend oodles of money. They get their customers before developing the product. In this way the customer gets what he wants and not what they think he wants. Now it’s a case of finding a business plan that will work as you build your ideas from lean startups—figuring out what doesn’t work, and correcting it to something that does, quickly. This new modern approach shows greater success rates for startups and is challenging conventionality. Innovation is critical. Conventional wisdom can become outdated. These days you have to think outside the box to get there. ■ I have far more respect for the person with a single idea who gets there than for a person with a thousand ideas who does nothing. Thomas Alva Edison (1847-1931) For 40 years, Steve Weedon has been a senior manager at Nashua, Katun Corp, Kalle Infotec, Gestetner and Static Control. He started the Recycler Trade Magazine in 1992. He is a Brit, living in America, with a parts supply business based in Hong Kong. <steve@discoverimaging.com> www.iRecyclingTimes.com|Issue40

52 THE LISTS Next Month’s Poll Question What prevents remanufacturers from increasing their aftermarket share of the consumables market?

Go online to vote:irecyclingtimes.com

Research What Is the Main Reason You Join a Trade Association? 1. It keeps me informed as to what is going on (technical, marketing, trends, legal matters); 39.47% 2. I am an industry professional so I should belong to my professional association; 26.32% 3. I want to support my industry, beyond my own self business interests; 15.79% 4. My association needs the support of as many industry players so it can lobby more effectively with OEMs, governments, media and the public; 10.53% 5. I enjoy socializing with others in my industry; 5.26% 6. It gives me a voice to express my ideas and suggestions for the industry. 2.63%

Top 10 Wireless Printers According to PC Magazine Editors, Tony Hoffman and Laarni Almendrala Ragaza

1. Brother MFC-8950DW A heavy-duty mono laser MFP, with excellent paper handling and the convenience of touchscreen controls 2. Brother MFC-J4510DW A letter-size MFP printing on manually fed paper as large as 11 by 17 inches 3. Canon imageClass MF4880dw A monochrome laser MFP and also a heavyduty personal printer 4. Dell 1355cnw Multifunction Color Printer Performs well in any size office 5. Epson Expression Premium XP-800 Smallin-One Printer A Small-in-One Printer including both Wi-Fi and Wi-Fi Direct connectivity 6. Epson WorkForce Pro WP-4533 An inkjet MFP, laser-class speed and a lower cost per page 7. HP Officejet 6100 ePrinter Reasonably high quality, fast printing and the capability of printing through the cloud 8. HP PhotoSmart eStation

Top 5 MFPs (Small-Medium Business) According to PrinterComparison Editor, Sarah Meyer

1. HP Officejet Pro X576dw 2. OKI MB471w 3. Brother MFC-8710dw 4. HP LaserJet Pro 400 M425dn 5. Samsung CLX-4195fw （www.printercomparison.com/default.asp?newsID=1623）

BERTO

InBox Letters and blogs from readers

Comments following Art Diamond's Paper Tutorial in Edition 39 (June) WILL PRINTING DIE? • Paper is very important to any kind of business, small or big, just like oxygen to human beings. And the term hacking has destroyed our trust on electronic devices or computers. Paper is one thing that cannot be hacked. Mohammad Khan Saad Ali Aayed Al-Malki Est. • The paperless office was predicted since the 70s. However, contrary to all predictions, worldwide printing volume always went up. Only in recent years have we seen some drop for the first time. I am not saying that paper will totally disappear in the end, but with the actual technologies now and most likely new technologies in the future, the use of paper will dramatically decline, no matter if we like it or not. Achim Reh, P-Tech Consulting

Detachable 7-inch touch screen 9. Kodak ESP 3.2 All-in-One Printer

LETTER OF THE MONTH

Home and home-office printer

Let me respond to your June edition of the magazine

10. Samsung CLP-415NW Fast speed and above-par output quality meeting the needs of light to medium-duty printing （www.pcmag.com/article2/0,2817,2379649,00.asp）

One interesting starter for our technological contribution could be an article about the sophisticated "Trickle Feed" toner technology, used by OEMs like Canon and Konica Minolta that is hard to copy by the aftermarket, only a few can, and Katun is one of them. Thomas Wolf, Katun Editor: We plan to publish Thomas' article on trickle feed toner technology next month.

DID YOU KNOW? High performance engine oil has to cope with up to 6,000 rpm. An inkjet fluid has to cope with the equivalent of over 1,000,000 rpm. Issue40|www.iRecyclingTimes.com