Recycling Times Magazine
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
RecyclingTimes The magazine by the industry, for the industry.
Publisher & Managing Director Tony Lee tony@therecycler.com.cn
Directors
David Gibbons david.gibbons@therecycler.com.cn Sabrina Lo sabrina@therecycler.com.cn
Editorial Editors
Johanna Breen Cherry Xu translator@therecycler.com.cn Jessica Yin magazine@therecycler.com.cn Sophia Jiang editor@therecycler.com.cn Emily Ou magazine02@therecycler.com.cn
Designer
Adam Lin design@therecycler.com.cn
Web Designer
Gonn Zeng web@therecycler.com.cn
Sales Sales Manager
Anna Leung anna@therecycler.com.cn
Account Manager
Kevin Zhu kevin@therecycler.com.cn
Sales Executives
Joy He mktas@therecycler.com.cn Sally He sales@therecycler.com.cn Susi Guo Sales02@therecycler.com.cn
Operation and Marketing Operation Manager Charles Lee charles@therecycler.com.cn
Operation Assistant
William Feng operation@therecycler.com.cn
Marketing Manager
Morrow Miao morrow@therecycler.com.cn
Accounting
Feng Li account@therecycler.com.cn
Published by
Recycler Publishing & Events (Zhuhai) Ltd.
Address
editorial editorial www.recyclingtimes.com.cn
A
number of significant legal disputes have taken place in the past couple of months: 1) In May, Canon took legal action against 5 Korean OPC drum manufacturers - Park & OPC, Alphachem, Baiksan OPC, CEMS, and Neophotocon; 2) On June 28, Canon filed a complaint with the US ITC against Ninestar and nineteen other companies, claiming that two of its laser cartridge patents were infringed. It’s not the first time Canon has brought a third-party laser cartridge manufacturer to court, but the impact of this wave of legal actions taken by Canon will probably have more impact than ever before. Laser printing has become more commonplace as the price for laser printers, especially monochrome printers, has dropped. But the price for the cartridges is still relatively high for end-users. In recent years, especially during the world wide economic recession, third-party toner cartridges have claimed more of the OEM market share. Canon is the largest manufacturer of laser printers and laser cartridges. So, it is no surprise they will protect their market share and market advantage. I think Canon will also try and stop compatible toner cartridges before they become rampant in the market. However, because the patents allegedly infringed by Ninestar and the five Korean companies are related to the OPC drums, the shadow cast by these legal cases may reach beyond compatibles and impact remanufactured cartridges as well. It is still early but we will follow closely the developments. Arnald Ho, chairman of Printer Consumables Committee of China and chairman of Print-Rite, will join hands with Art Diamond to co-chair GRIGA - the first assembly of industry leaders, trade associations and media concerns. This inaugural ‘parliament’ will be held on September 25, 2010 in Zhuhai, China. Both Art and Arnald think that GRIGA will provide a good opportunity for the industry to discuss the common industry issues and solutions. We hope GRIGA will go on to serve the industry as a platform for communication and understanding, and therefore create unity in the industry. Recycling Times has taken the initiative to organize the first GRIGA. But if it is going to succeed, it must be owned by the industry. I believe, with the support from the industry, the media, and the government, GRIGA will be an outstanding event for the industry.
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RecyclingTimes
Tel：+86 (0)756 3220716 Fax：+86 (0)756 3220717 Email：info@therecycler.com.cn Website：www.recyclingtimes.com.cn
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August 2010 | www.recyclingtimes.com.cn
Tony Lee Publisher & Managing Director All rights reserved. © 2010 by Recycler Publishing & Events (Zhuhai) Ltd. The contents are not be to copied or republished without official written consent. The editorial content does not represent official positions of Recycler Publishing & Events (Zhuhai) Ltd.
Recycling Times Magazine
contents contents
Canon took legal actions against several Korean OPC manufacturers
Canon believes that several Korean companies allegedly produce drums that infringe Canon’s patents and are sold to aftermarket companies who use the drums to produce compatible supplies that are sold worldwide for use in HP and Canon laser printers.
www.recyclingtimes.com.cn
Canon takes on replacement toner cartridges
Just a Minute
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Just a Minute with David Gibbons
“It seems that Canon’s ambition is not just about excluding compatibles from the US market. It may intend to strike at the roots of aftermarket toner cartridges manufacturing.”
Industry Updates
6 7
Key employment tips for China operations
Eco Service expands to China Important standards workgroup meetings held
This article reviews the recent key PRC legislative changes on the employment regime and proposes certain proactive approaches to enable employers to better position themselves to deal with the potential challenges and to minimize their exposure to the potential risks of employment disputes.
Canon took legal actions against several Korean OPC manufacturers Future Graphics merged into parent company
8 9 10
Fan Ling upgraded sales service system HP files new 337 complaint regarding certain inkjet ink supplies Arnald Ho, Art Diamond to Jointly Chair Global Assembly
OEM news
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New from Future Graphics
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ILG releases new cartridges for HP and Lexmark machines
Static Control offers components to remanufacture HP CE285A & CE278A
Faroudja offers bulk toner for Samsung CLP 600
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Print-Rite unveiled Pivotal Premium toner cartridge
15
Speed Infotech unveils new products in Brazil
SoyPrint released 100% soy toner resin
24 30
17
Samsung India expects robust 60% in current fiscal
Epson to increase focus on marketing solutions
Fuji Xerox (Thailand) wins the Green Products and Service Company Award
How to choose an effective trade show
Profiles
32
Diamond Brasil: A company to look at Brazilian remanufacturing industry
Legal Issues
OEM news Canon takes on replacement toner cartridges
Key employment tips for China operations
Showcase
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Canon takes on replacement toner cartridges
Management
Jadi releases new toner for HP LaserJet P1102/P1566/ P1606
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Canon launches recycling campaign in Philippines
Features
RemaxAsia promoted in the US and Southeast Asia
Product Release
Xerox launches monochrome laser MFP WorkCentre 3550
On the protection scope of design patent right
Tech Zone
38
Remanufacturing the HP LaserJet P1102 series toner cartridge CE285A
Market Data
46
Printer information
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Just a Minute
Just a Minute with David Gibbons The pending legal battle between Canon and China’s Ninestar is a timely reminder that the original equipment remanufacturers (OEMs) and remanufacturers continue to be at loggerheads with each other. And that’s where the real industry competition should be also! For the past twenty years remanufacturers have continued to compete with each other, instead of with the OEMs. Time and again I have seen a remanufacturer come into town and set up business. And the first thing they do is sell their remanufactured cartridges cheaper than their remanufacturing competitors. Some businesses believe all they have to do is add 50c to the cost of the replaced parts, toner and labour. Others have told me they recharge 5,000 units per month with a profit margin of $1 per cartridge. In each case, the remanufacturer thinks he is successful because he has beaten his remanufacturing competitors, and won the contract.
But has he really? I cannot help but notice some remanufacturers set their prices between 60% and 80% of the OEM prices. They are mostly dearer than other remanufacturers, but they continue to be in business decades later. They can afford to offer real ser vice, have little problem finding empties, and have money in the bank. One such company only recharges 800 cartridges every month, but they make a profit margin (after overheads) of $15 per unit. So who is the most successful at the end of the day? Take your favourite fruit pie. And cut it into 10 slices. The OEMs are eating 7 of those slices. Which leaves 3 pieces of the pie. Why are you squabbling with the remanufacturer down the road over those three pieces? Why not go and chase down the biggest piece of the pie?
David Gibbons Director, Recycling Times and RemaxAsia Expo. David Gibbons has been a school principal, marketer, and businessman - starting his own remanufacturing and sales company from scratch, in Sydney, Australia. He was Executive Director of the Australasian Cartridge Remanufacturers Association until 2005, and since that time has mentored or run industry conferences and expos in India, Brazil, China, Australia, New Zealand and South Africa. Gibbons is the director of communication for a large South Pacific organisation of 420,000 members, based in Sydney. He is the anchor on an international, weekly, TV news magazine and publishes a bi-weekly news magazine with a circulation of 25,000.
CORRECTIONS 1. In an article about “Long-awaited Memjet Printer Comes” in the previous issue on page 16, the price for Memjet printer is about $300 to $500, Recycling Times incorrectly reported it to be about $ 300. 2. Also on page 16, in the last line of Table 1, “Number of print heads” should be “Number of ink Channels”. The correct Table shows as follows: Model Speed (Max) Print width (Max) Number of ink channels
M1 12 inches (304 mm) per second 8.77 inch (222.7 mm)/A4
SpeedStar 12 inches (304 mm) per second 8.77 inch (222.7 mm)/A4
Rapid X1 & X2 12 inches (304 mm) per second 8.5 inch (220 mm)
5, CMYKK
5, CMYKK
5, CMYKK
We regret any inconvenience this may have caused our readers. To send comments and suggestions or to report errors that call for correction, please e-mail to translator@therecycler.com.cn.
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August 2010 | www.recyclingtimes.com.cn
1 Ink Cartridge
Bulk Ink
2
3
disassemble convenient cost effective
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2010 ZHUHAI CHINA
26-28 September
Booth: C110
REACH
News: News:
Photo Paper
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Toner Cartridge
Recycling Times Magazine
Industry updates
Eco Service expands in China
G
lobal empty cartridge broker Eco Service has opened a branch in China. Eco Service China, based in Hong Kong, will represent the company in the Far East. The Chinese branch will make it possible for the company to increase its share of the aftermarket. A 100 percent stakeholder of Eco Service China is Eco Service company, part of Black Point Capital Group. The Chinese office will serve as its broker subsidiary. In the initial phase Eco Service China will concentrate its operations mainly on sales of empty cartridges to producers from China. A further step will entail widening the sales network
and development of the purchase market. Currently there is an operational trade office in Hong Kong, soon a warehouse will be opened. The launch of Eco Service China is another step on Eco Service's way to strengthening the company's position on the global aftermarket.
“The Hong Kong office will let us streamline our co-operation with Chinese partners. Thanks to the fact that we will be able to combine small orders, our Far Eastern partners will obtain efficient logistics, as well as save their time and money.” said Marcin Adamski, CEO at Eco Service. “I am certain that it will soon pay off and within two years be reflected by a quick growth in our sales in this part of the world”, he added. Eco Service is currently one of the largest broker companies in Europe. Each year it collects about 3.5 mln empty cartridges from the market. On the European market, it is supported by the German TBG company headquartered in Herne. Eco Service is operating also on the Asian and American markets.
Important standards workgroup meetings held
T
he ISO/IEC JTC 1/SC28 AWG, WG2, WG3, WG4, WG5 workgroup meeting and joint meeting were held recently in New York to discuss the standards laid by ISO (the International Organization for Standardization) and IEC (the International Electrotechnical Commission). Present were delegates from America, China, Germany, Holland, Japan, Korea, Russia and other countries and regions. Among them, the WG2 workgroup (focused on consumer and replaceable components) had a heated discussion on the following – • ISO/IEC 29142 (inkjet and toner cartridges features description standard from section one to section five). • IS O/IEC 2102 (testing methods for the yield of color inkjet printers and multifunctional printers). • ISO/IEC 29103 (testing page for determining yield of color photo cartridges). The AWG workgroup talked about SC28 program, including the roadmap, working environment, terms, documents, project PWG6
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activities and issues regarding color from Germany. Reports of SC28, IEC TC100/TA2, CIE Section 1/Section 8, ECMA TC38/TC46, ICC, ISO SCIT, ISO/TC42, TC130, TC171 were heard. The joint meeting put together relevant issues. The implementation of SC28 was examined and 42 agreements were reached. A major topic of the meeting was whether or not the trademark should be stripped off during the remanufacturing process, with regard to the ISO/IEC 29142 inkjet cartridge/ toner features description standard. The Chinese delegation held the idea that trademark should not be covered in the
standard which focuses on environmental issues. Some cases were brought up to support this argument. Some delegates showed understanding of the points made by the Chinese delegates. However, due to the small number of compatible and remanufacturing companies present, the idea put forward by Chinese delegation was not written in the standard. At the meeting, Chinese delegate expressed the intention to offer more suggestion for revision of the standard. The Chinese delegation was headed by Zhang Xiping, president of Zhuhai Printing Consumables Industry Association.
Recycling Times Magazine
Industry updates
Canon takes legal action against several Korean OPC manufacturers
I
n May 2010, Canon filed several complaints with the Korean Trade Commission regarding photosensitive drums used in printing equipment. On June 28, Canon filed a complaint with the USITC (United States International Trade Commission) and another lawsuit in a district court regarding two patents covering the printer’s drive motor connection with the OPC drum in the toner cartridge. According to ITC public court documents, Canon believes that several Korean companies have infringed certain claims of their patents in that country and these companies allegedly
produce drums that infringe Canon’s patents and are sold to aftermarket companies who use the drums to produce compatible supplies which are sold worldwide for use in HP and Canon laser printers. This is not the first time this patent has been part of legal or intellectual property lawsuit. For now, Canon has filed five complaints with the Korean Trade Commission for different claims of this patent and sought one preliminary injunction in the Suwon District Court. The complaints are shown in the table below. On June 11, 2010, the Suwon District Court found that AlphaChem was guilty and had
infringed claim 25 of the 258,609 patent. Recycling Times will disclose more information as soon as it becomes available.
Date
Action
Defendant
Case Number
Brief introduction
May 17
Canon filed complaint with th rade Commission
Park & OPC
GuJe 4-1-2010-5
Park & OPC was exporting and/or manufacturing drums that infringed claims 25 and 26 of Korean Patent No. 258,609
May 17
Canon sought a preliminary injunction
AlphaChem
2010KaHap151
Infringement of Korean Patent No. 258,609 in the Suwon District Court
Baiksan OPC
GuJe 4-1-2010-6
AlphaChem
GuJe 4-1-2010-7
CEMS
GuJe 4-1-2010-8
NeoPhotocon
GuJe 4-1-2010-9
May 19
May 20
May 24
May 25
Canon filed a complaint with the Korean Trade Commission Canon filed a complaint with the Korean Trade Commission Canon filed a complaint with the Korean Trade Commission Canon filed a complaint with the Korean Trade Commission
Baiksan was exporting and/or manufacturing drums that infringed claims 25 and 26 of Korean Patent No. 258,609 AlphaChem was exporting and/or manufacturing drums that infringed claims 25 and 26 of Korean Patent No. 258,609 CEMS was exporting and/or manufacturing drums that infringed claims 25 and 26 of Korean Patent No. 258,609 NeoPhotocon was exporting and/or manufacturing drums that infringed claims 25 and 26 of Korean Patent No. 258,609
Future Graphics merged into parent company
F
uture Graphics Imaging Corporation merged into its parent corporation, Mitsubishi Kagaku Imaging Corporation
in July. The company’s new name will be Future Graphics, a division of Mitsubishi Kagaku Imaging Corporation. The address, phone numbers and fax numbers will remain the same. In a letter to customers, the company said “the excellent service you expect will also remain the same”.
Future Graphics announced on May 13 the launch of a new website www.fgimaging. com. According to the company, the website will make customers’ searches for high quality matched systems much easier. The new features are as follows: • Highly intelligent search function • Detailed engine information • Build options for yield and density • Critical component analysis • Improved cross referencing
For more information, please go to www. fgimaging.com.
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Industry updates
Fan Ling upgraded sales service system
F
an Ling Trading Company Limited of Zhuhai (Fan Ling), the domestic sales company of Print-Rite announced in late June the upgrading of its sales service system in order to support the increasingly growing sales network in China. According to the company, Fan Ling not only upgraded the software, logistics and other support services but also expanded the scale of the company. Apart from that, Fan Ling moved into the Print-Rite Tower, an 11 storey building which is situated at the Zhuhai Park of Zhuhai-Macao Cross-Border Industrial Zone. The address of Fan Ling has therefore changed to 7/F, PrintRite Tower, Block 3-1B, Park of Zhuhai-Macao Cross-Border Industrial Area. The name of the company has been officially changed into
“Zhuhai Print-Rite Fan Ling Company Limited”. The changes provide Fan Ling with a secure database which was tested with ISO27001 standard. The new offices also feature an interactive center where over 100 customers can interact with Fan Ling representatives at the same time. The distribution service is concentrated on several floors of the tower. This makes distribution much easier and faster. Fan Ling also enjoys a three-in-one sales platform where its information, service and sales centers merge together. A CIC operation system will be applied to manage the communications with customers instead of the old, one way communication platform for customer service. The management said during an interview: “Print-Rite Fan Ling will see improvement in many areas, such as sales scale, customer
service, logistics and solutions. I believe the integration of resources in Print-Rite will bring us a new round of boosts in domestic sales.”
HP files new 337 complaint regarding certain inkjet ink supplies
A
ccording to the reports from the ITC 337 Law Blog, on June 25, 2010, Hewlett-Packard Company of Palo Alto, California (“HP”) and Hewlett-Packard Development Company, L.P. of Houston, Texas (“HPDC”) filed a complaint requesting that the ITC commence an investigation pursuant to Section 337. The complaint alleges that Mipo International Ltd. (Hong Kong); Mextec Group Inc. d/b/ a Mipo America Ltd. (Miami, Florida) and the Chinese companies Shanghai Angel Printer Supplies Co. Ltd.; Shenzhen Print Media Co., Ltd.; Zhuhai National Resources & Jingjie Imaging Products Co., Ltd.; Tatrix International; and Ourway Image Co., Ltd. ave engaged in violations of Section 337 through unlicensed importation into the U.S., sale for importation, and/or sale within the U.S. after importation of certain inkjet ink supplies and components thereof that infringe one or more claims of U.S. Patent Nos. 6,959,985 (the ‘985 patent) and 7,104,630 (the ‘630 patent).
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Complainants allege that each of the proposed respondents manufactures or purchases black and/or color ink cartridges compatible with the HP 02 product line in China and sells such cartridges for importation into the U.S. According to the complaint, the accused HP 02 compatible cartridges infringe several claims of both the ‘985 and ‘630 patents which generally relate to printing-fluid containers, such as ink cartridges.. Regarding the US industry, Complainants name several inkjet ink supply products from the HP 02 product line which they allege are protected by the ‘985 and ‘630 patents. In addition, complainants state that HP’s domestic industry activities include HP’s significant investment in plant and equipment, significant employment of labor and capital, and substantial investment in the exploitation of the ‘985 and ‘630 patents. The complainants add that although HP does not presently manufacture its ink cartridges in the U.S., HP has conducted and continues to conduct many activities in the U.S. relating to its
ink supply cartridges that practice the ‘985 and ‘630 patents. As to related litigation, the complainants assert that on September 23, 2009, HP filed a complaint against the proposed respondents relating to the ‘985 and ‘630 patents in the Central District of California, which was later voluntarily dismissed on March 18, 2010. In addition, according to the complaint, on September 23, 2009, HP filed a complaint in the ITC against the proposed respondents relating to the ‘985 and ‘630 patents, as well as two additional patents. On June 3, 2010, at the request of HP, however, ALJ Essex terminated the investigation with respect to the ‘985 and ‘630 patents. With respect to potential remedy, Complainants request that the ITC issue a permanent general exclusion order (or, in the alternative, a permanent limited exclusion order) and a permanent cease-and-desist order directed to each of the Proposed Respondents.
Recycling Times Magazine
Industry updates
Arnald Ho, Art Diamond to Jointly Chair Global Assembly
T
he iconic leader of the Chinese imaging consumables industry, Mr. Arnald Ho, who also serves as Chairman of the Printer Consumables Committee of China and Chairman of Print-Rite Holdings Ltd, will join hands with 55-year industry veteran Art Diamond to jointly chair the charter Global Remanufacturing Industry General Assembly (GRIGA). In recent years, the aftermarket supplies industry enjoyed fast development in the Asia Pacific Region, but expanded less rapidly in other areas. We all face certain common concerns, such as intellectual property, quality standards, lockout chips, extended markets, green issues, technology barriers, sourcing spent cartridges, etc. China’s printer consumables industry has drawn a lot of attention in recent years. The city of Zhuhai is a shining example as it hosts the greatest number of manufacturers of various printer supplies products and parts anywhere in the world. Therefore, Zhuhai has been chosen as the host city for the first Global Remanufacturing Industry General Assembly. Upon accepting the invitation, Ho said, “GRIGA is an important meeting for this industry, because the whole industry today, wherever you are, is facing the same issues: First, the increasing difficulties of the chip technology development by OEMs which mainly to stop the compatible or reman cartridge industry. Second, the aggressiveness of OEMs to collect empties, while not re-using them. Third, these empties are either dumped into third-world countries damaging their environment, or are recycled into other materials, which is less efficient than re-using the cartridges. I hope we can raise the awareness among the consumers and all governments to the benefits and ecological merits of cartridge remanufacturing.” “I am honored to co-chair the GRIGA together with Mr. Anarld Ho. He has immense knowledge and an outstanding record of accomplishment in our industry. He has also been actively involved
in promoting the industry and raising the quality of its products, by his efforts to establish higher industry standards.” Art Diamond said. Diamond added, “I look forward to meeting representatives from the international trade associations, industry media and entrepreneurs of the world. GRIGA provides a great opportunity for us to exchange our views and ideas and to find solutions for the issues we face today and in the future.” Vincent van Dijk, Secretary General of ETIRA, will share his observation on the European industry at the GRIGA, he said “By addressing the remanufacturing community in China, ETIRA is keen to highlight the challenges that the industry is facing in Europe today. Ranging from low priced competition and OEM patents to clever chips and end-life management rules, overcoming these challenges is a permanent struggle for European remanufacturers today.” Neil Coulton, Technical Director of UKCRA, comments “The General Assembly is a unique opportunity to bring together all the major remanufacturing Associations, to work together for the benefit of all involved, via the sharing of concerns, information and resources, with the ability to address global issues in a meaningful and effective manner. It will be an opportunity to build international relationships for the benefit of the industry not only on a global level, but also on a local and regional basis.” John Shane, Director of InfoTrends, a leading industry expert on imaging materials such as toner, OPC, inkjet ink, and cartridges. He will share his studies on the market trends with the delegates. “The aftermarket supplies industry is growing strong. I’m excited to meet the industry players and share my studies.” Tony Lee, Managing Director of Recycler Zhuhai, said, “ It is a tremendous honor for me to organize the first GRIGA and that the GRIGA is won so much support from the government, trade associations, 15 industry media and the different companies. While we have established the RemaxAsia Expo as the world’s largest trade
▲ Arnald Ho
show for the aftermarket printer supplies, I hope we can make GRIGA a platform for communication, unity and prosperity for the whole industry.” For more information about GRIGA, including the speaker introduction and conference program etc, please log on www.visitremax. com.cn or contact Sabrina Lo at Sabrina@ therecycler.com.cn About GRIGA Global Remanufacturing Industry General Assembly (GRIGA) is initiated by Tony Lee, Publisher of Recycling Times magazine. The GRIGA aims to: 1. Unite the remanufacturing industr y worldwide through meeting and exchange of ideas; 2. Enhance the understanding of trends, directions and standards in the development of the copier and printer consumables aftermarket; 3. Share the experience of promoting ecofriendly remanufactured products and the remanufacturing philosophy to the public and different governments; 4. Promote the healthy and steady development of the industry around the globe. The first GRIGA will be hosted by Recycling Times magazine in Zhuhai, China on September 25, 2010. www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Industry updates
RemaxAsia promoted in the US and Southeast Asia
I
n July, Recycler Publishing & Events (Zhuhai) Ltd. (Recycler Zhuhai) set out with two teams for America and Indonesia to promote RemaxAsia Expo 2010. From July 14 to 16, Recycler Zhuhai was at RechargExpo in Jakarta. The show drew about 100 exhibitors from Indonesia, Singapore, China and other regions around the world. On July 14 and 15, another team from Recycler Zhuhai attended World Expo 2010, held by Recharger Magazine. This two-day event had more than 110 exhibitors. At the two shows, the flyers prepared by Recycler Zhuhai were all given out and buyers who were interested in printer supplies flocked to the Recycler China stand and the 2010 China Imaging Industry Map, published by Recycler Zhuhai, drew large audience. The map shows the world a clear picture of the status in the remanufacturing consumables industry of Zhuhai and China, so that buyers can better understand the strategic position of the RemaxAsia Expo show. The 2010 Global Imaging Industry Year Planner, again, published by Recycler Zhuhai, showed that the timing of RemaxAsia Expo 2010 was also advantageous. A creatively-designed Passport to RemaxAsia Pacific 2010 also won the visitors’ attention and admiration. Recycler Zhuhai also presented
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August 2010 | www.recyclingtimes.com.cn
Recycling Times magazine to the visitors. At RechargExpo, nine companies expressed the intention to reserve booths at RemaxAsia Expo 2010. “As of July 7, we have more than 300 exhibitors. We are confident that we will see 350 exhibitors in September,” said Anna Leung, Sales Manager of Recycler Publishing & Events (Zhuhai) Ltd. Many visitors who came to the booth made inquiries about the preparations for RemaxAsia Expo 2010. A large proportion of those who came to say “hi” were Recycler Zhuhai clients. They spoke highly of previous Remax shows and expressed an intention to come to RemaxAsia Expo 2010. Thierry Orge from French company JRC has been at RemaxAsia Expo for three years in a row. He also visited Recycler Zhuhai’s booth and thanked Recycler Zhuhai for the free accommodation package. M.A. Saji, Business manager of Al-Dayil Office Automation told Recycler Zhuhai at the show that he would show up in Zhuhai in September for RemaxAsia Expo show. Nils Widarp, President of Interprint from Thailand and Ashoke Ku m a r R o y, C E O o f MRF in Bangladesh also joined the league of visitors. At World Expo 2010, many visitors pointed out the advantages of RemaxAsia Expo show. They said it was great to visit potential supplier’s factories in order to
ensure the quality and delivery of the products as well as maintaining friendly relationship with suppliers. The 1,000 free room nights for visitors were especially welcomed. Recycler Zhuhai has always been committed to delivering the best service to you with high quality trade shows and publications. Mr. Redmond from MPC in the USA decided to come in September and accepted the free accommodation package. He expressed the package showed the sincerity of Recycler Zhuhai. He also mentioned asking more friends in the industry to join him in the journey to RemaxAsia Expo in September. The first Global Remanufacturing Industry General Assembly (GRIGA) will also be held in September 25 at Zhuhai Holiday Resort Hotel in Zhuhai, China. At World Expo, senior technician Raymond was expecting to share with the experts the latest information and technology development in the industry. RemaxAsia Expo 2010 is two months away and under preparation. Recycler Zhuhai will pull together all resources and deliver you with the best value. You can download a PDF version of the 2010 China Imaging Industry Map and 2010 Global Imaging Industry Year Planner at the official site of RemaxAsia Pacific at www.visitremax. com.cn.
Recycling Times Magazine
Product Release
New from Future Graphics
F
uture Graphics (FG) has introduced a new OPC and toner combination for the CP3525 engine that has been qualified and is scheduled for release around mid-July. The release of these products ( part of the new Kaleidochrome brand) i s i n k e e p i n g w i t h Fu t u r e G r a p h i c s ' commitment to continuous improvement, providing even stronger performance characteristics than its predecessors. Fu t u r e G r a p h i c s w i l l c o n t i n u e i n i t s efforts to develop and supply the finest OPC and toner combinations on the market today for remanufacturers. The part numbers and descriptions are as shown in table one. FG also announced that it had qualified supplies to work in the L exmark X203/
X 2 0 4 M F P. T h e s e printers are lowcost ($299), 24 ppm monochrome MFPs targeted at the SOHO and SMB segments seeking multifunctional capabilities but not requiring heavy print volumes. The Future Graphics matched system includes MK Imaging toner and OPC, chip, wiper blade and doctor bar. Lexmark only offers a standard-yield, 2,500-page cartridge
Old part Nos
New part Nos
Description
HP3525CHEMC10KG
HP3525CHEMHC10KG
Cyan Toner
HP3525CHEMM10KG
HP3525CHEMHM10KG
Magenta Toner
HP3525CHEMY10KG
HP3525CHEMHY10KG
Yellow Toner
HP3525MKIPNPE
HP3525MKIHPNPE
OPC drum
▲ Replacement New part number: HP3525MKIHPNPE
▲ Original part Old part number: HP3525MKIPNPE
HP3525CHEMC140
HP3525CHEMHC140
Cyan Toner - Bottle
HP3525CHEMM140
HP3525CHEMHM140
Magenta Toner- Bottle
HP3525CHEMY140
HP3525CHEMHY140
Yellow Toner- Bottle
HP3525CHEMK130
HP3525CHEMK130
Black Toner
HP3525CHEMK220
HP3525CHEMK220
Black Toner
HP3525CHEMK10KG
HP3525CHEMK10KG
Black Toner
▲ Note: No change for black toner
for the X203/X204 printers. However, this standard yield cartridge can be converted into a high yield 6,000-page cartridge by using the X342UCHIP2 (FG Chip) and E332MKI200 (MK Imaging Toner). All products for the remanufactured X203/X204 MFP are in stock now and ship from convenient locations all over the globe. Performance data is available upon request. For more infor mation, please contact Future Graphics sales representatives.
Static Control offers components to remanufacture HP CE285A & CE278A
R
emanufacturers eager to bring HP’s new LaserJet Pro P1102 and HP P1606/1566 printer cartridges into their production lineup now have the components to get started. Static Control offers a full selection of primar y and secondar y components to remanufacture the new CE278A and
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August 2010 | www.recyclingtimes.com.cn
CE285A cartridges. The new cartridges are used in printers introduced to replace the popular P1005/1006 and P1505 series. Static Control engineers have thoroughly tested and qualified the components needed for the new CE278A and CE285A cartridges, which are used to remanufacture P1005/1006 and P1505
series cartridges. “Remanufacturers have everything they need to bring these new cartridges into their production lineup and take advantage of this new profit opportunity,” said Ed Swartz, CEO of Static Control. “Our job is to help our customers stay profitable, and we take that job very seriously.”
Recycling Times Magazine
Product Release
ILG releases new cartridges for HP and Lexmark machines
I
nternational Laser Group (ILG) added OEM alternative color cartridges for HP Series CP3525/CM3530 Multi-Function Printers (MFP): CE250X (Black), with a 10,500 page yield; CE251X (Cyan), with an 8,750 page yield; CE252X ( Yellow), with an 8,750 page yield and CE253X (Magenta), with an 8,750 page yield. ILG’s exclusive Jumbo Color
guarantees a 25 percent page yield increase over the OEM color toner cartridges. The HP Series CP3525/CM3530 MFPs are designed to accelerate business printing activity with easy-to-use multi-function capabilities allowing for printing and copying up to 31 pages per minute. The machines also feature embedded networking capability and enterprise class security features. On June 25, ILG announced OEM alter native cartridges for L exmark X 2 6 4 x n , X 3 6 3 d n a n d X 3 6 4 d n / d w. Lexmark X264dn/X364dn/X364dw series multi-function printers offer an array of time-saving and cost-saving features for
small workgroups. All machines are equipped with 4-in-1 scan, copy, fax and print capability. The Lexmark X363dn is a 3-in-1 multi-function machine with scan, copy and print capability. ILG says its premium quality toners are 100 percent guaranteed, and every cartridge is tested to ensure excellent color quality imaging and sharp high-density print results. ILG test prints over 3 million pages per month and conducts multiple pre- and post-production tests as part of its quality assurance program.
• Contact ILG Toll free: 800-937-2880 ext. 3207 Visit: www.ilglaser.com
Faroudja offers bulk toner for Samsung CLP 600
F
aroudja Toner released color toner in bags for the Samsung CLP 600, 650. Ten kilogram (22 pound) bags are sold for black, cyan, yellow and magenta, and can be purchased individually or in multiple quantities. “As the recession deepens we’re seeing the OEMs making less and less new printers, which is unfortunate,” explained Marketing Director
Tim Farrell. “So we want to make sure we have everything that is out there. We’re pleased to now offer the Samsung CLP 600/650 in bulk, as
• Contact Faroudja Toner Ph: +1-650-593-3862 Fax: +1-650-593-3817 Visit: www.faroudjatoner.com
it is a fairly popular printer and should maximize profit for our customers.” The Samsung CLP 600/650 cartridge requires smartchips, which Faroudja also supplies, and a drum is also available. Faroudja Toner additionally stocks color toner for Hewlett-Packard, Okidata, Xerox Phaser and supplies a wide range of parts and refilling tools.
Jadi releases new toner for HP LaserJet P1102/P1566/P1606
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adi Imaging Technologies Sdn Bhd ( Jadi) has announced the release of HP New Generation Toner-1 or HP NGT-1 ( JLT034) for use in HP LaserJet Pro P1100/ P1102 (CE285A) and P1560/ P1566/ P1600/ P1606 (CE278A) series printers. Jadi’s HP NGT-1 toner is also applicable in HP LaserJet P1005/ P1006 (CB435A), P1007/ P1008 (CC388A) and P1505/ M1522 MFP (CB436A). The HP LaserJet P1102/ P1566/ P1606 printers were released by HP in May 2010. Designed for small and home office users, these printers are equipped with Instant-on Technology and industry’s first Auto-On/Auto-Off Technology to help conserve energy and resources. Besides
these eco-conscious features, the new printers have a base resolution of 600 dpi which can be enhanced up to 1200 dpi and they all come with HP FastRes 1200 Technology that delivers crisp text and professional-quality prints. For normal A4 sized printing, the HP LaserJet P1102 has a print speed of 18ppm while the HP LaserJet P1566 and P1606 can print up to 22 ppm and 25 ppm, respectively. Jadi’s HP NGT-1 toner ( JLT-034) is designed to have good Image Density (ID) to produce bold and sharp text. The strong grayscale effect of this toner delivers excellent quality on multitone image printing. High transfer efficiency significantly reduces toner waste and notably improves page yield for a lower printing
cost. Its good fusing properties are well suited to the stringent fusing mechanism of these new printers. The wide application of this toner which also covers the P1005, P1006 and P1505 series would help to reduce SKUs and simplify inventory management. Samples of HP NGT-1 toner ( JLT-034) are now available. Please contact your Jadi sales representative for more information.
• Contact Jadi Tel: +60-3-7804-0333 Email: sales@jadi.com.my Tel: +86-512-8818-8033 Email: sales@jadi.cn www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Product Release
Print-Rite unveils Pivotal Premium toner cartridge
P
rint-Rite unveiled itsPivotal line cartridges in the Pivotal exclusive booth at World Expo 2010 in Las Vegas. Throughout the show, the company had printers running side-by-side allowing visitors to make compare the prints from the Pivotal cartridges with premium toner cartridges by a number of other well-known brands. According to Print-Rite, Pivotal represents the top of the line in Print-Rite's toner cartridges and the company has leveraged its extensive expertise to produce these premium cartridges. "We are proud to roll out our Pivotal line at World Expo," said Arnald Ho, Director of Print-Rite Unicorn before the show. "When it comes to premium quality, seeing is believing and regardless of whether they come in the morning, or in the afternoon, or the next day, visitors to our booth will
see the same great performance – sheet after sheet and cartridge after cartridge. More importantly, that's what end users will experience too." “With Pivotal remanufactured cartridges, distributors and dealers can market a true alternative to original products. Pivotal cartridges consistently perform as well as any other top line toner cartridges and they provide consumers with an attractive price discount." Mr. Ho added, pointing out that consumers can feel good about using Pivotal cartridges because not only do they perform flawlessly; they are also good for the environment. Each Pivotal cartridge is made from an ultrasonically-cleaned virgin core and
• Contact Print-Rite Tel: +852-2140-9388 Email: enquiry@print-rite.com
refilled with customized toner that has been matched to a proprietary OPC drum. The drum-toner combination ensures precise color matching and area fills with the highest optical density. Pivotal cartridges feature other proprietary components such as doctor blades that eliminate streaking and wiper blades that will not flip when cleaning. Pivotal cartridges undergo many tests, including page-yield testing that complies with established ISO standards, additional testing of characteristics such as print quality and color consistency as well as optical density and edge acuity. Tests are also run under various extreme conditions. Pivotal cartridges for popular HP color and monochrome laser machines will begin shipping in the third quarter of this year. Cartridges for equipment from other OEMs are expected by the end of the year. Print Rite is currently taking orders.
SoyPrint releases 100% soy toner resin
P
rint Recovery Concepts, through its SoyPrint brand, announced it is near completion of the much-anticipated second generation of soy-based toner. Rick Greenlaw, Vice President of Marketing, announced the resin for the new toner has been tested by Beta Labs and a bio content of 100 percent has been certified. Greenlaw reports this is the highest resin bio-content in the industry. “In the final toner mix, the non-oil ingredients will reduce the final bio content but it is expected to exceed that of all other brands”, Greenlaw said. He reported continued success in securing SoyPrint licensees worldwide. These licensees, including those in Western Europe and Central America, will use the new SoyPrint toner to make cartridges in their respective nations, reducing shipping
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costs and fuel. SoyPrint will continue to be sold in the US by Print Recovery and its distributors. Greenlaw said soy cartridges are no more expensive than HP models, and often are cheaper. He reported that many colleges, banks and businesses use them. Greenlaw said SoyPrint will be available for other printer brands later this year and for color in 2011. SoyPrint is endorsed and sponsored by the Indiana Soybean Alliance. Around mid-July, Printer Essentials was announced as the exclusive US distributor of SoyPrint
bio-toner cartridges. Greenlaw also stated that soy-based inkjet ink will be ready this year and licensees are being sought in the US and worldwide for access to this first-ever technology.
Recycling Times Magazine
Product Release
Speed Infotech unveils new products in Brazil
S
hanghai-based Speed Infotech Holdings(Speed) announced that they have launched several new after-market HP cartridges at the Reciclamais show in Sao Paulo. New compatible replacement inkjet cartridges HP60 (CC640WN) and 60XL (CC641WN) along with mono laser cartridges HPCE285A/ HPCE287A and the color cartridge models CB540A, CB541A, CB542A, CB543A are the first new compatible products from Speed ready for release in 2010. Demand for compatible products in the South American markets is particularly strong commented Speed Infotech spokeswoman Catherine Chow, ''We have been very pleased with the number of visitors expressing interest in our range of compatible and remanufactured products, and we have had an opportunity to
learn a great deal about the regional markets in South America''. As first time exhibitors in Sao Paulo, Speed Infotech assigned senior sales and marketing personnel to the event. International Business Managers, Juan Garcia Sendra and Angela Shekyls, both industry veterans, expressed their surprise at the level of enthusiasm for the event and the sales potential in the region. Angela said, 'The place reminds me of the boom times in Europe and Russia during the early 2000s when we were getting container sized first orders. We are very excited about the future in the South Americas market'. Concentrating efforts on building business links within fellow BRIC (Brazil, Russia, India, China) member countries has proven a successful strategy for Speed Infotech. Over the past 24 months the company has
enjoyed significant sales growth in these markets, providing a boost to sales revenues and profit income which they hope will lead to another record breaking year of growth for the company.
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
OEM news
Canon India unveils ambitious growth plan for India
C
anon India is hoping that government projects will supply a high proportion of the revenue needed to reach its aim of becoming a billion dollar firm in India by 2014. Having set such a target, Canon India is betting big on government projects for revenue growth. Government procurers are increasingly realizing that buying better printing and imaging solutions can create efficiencies which, in turn, save money. Recognizing the potential this offers, Canon is hoping that by targeting this sector this year it will gain about 20-25% of its revenue to come from government projects alone. "We are the market leaders in the photo and inkjet segments. Now we are looking at new avenues and opportunities for growth. The government sector is one of the areas where there is tremendous scope," Alok Bharadwaj, Canon India’s senior vicepresident told Mail Today. The company is also reported to be looking beyond its traditional product portfolio, offering solutions for digitizing files, records and archives, cost-effective printing works and high-end surveillance cameras. According to Mail Today’s report, Canon
is already working with Wipro Healthcare on a project that involves maintaining the family records of patients in a digital format in government hospitals. The company is also involved with other government projects such as maintaining digital images of people applying for passports (working with TCS) and the creation of photo identity cards for fishermen in the coastal areas, following the Mumbai terror attack (in collaboration with Bharat Electronics
Ltd (BEL)). Canon is also working on providing better security solutions in places like airports with its high-end niche security cameras and lenses. "Another project that we are quite bullish on is the prestigious UIDAI (Unique Identification Authority of India) program. We are already in advanced talks with the government. Also, printing of the cards is another area where the talks are going on," Bharadwaj said. "Since most government projects are coming up with private/public partnerships, such associations are easier now as we are negotiating with another corporate who understands our way of working," he added. Bharadwaj explains that Canon plans to spend Rs 100-120 crore on marketing this year and is targeting a growth of 44 per cent with an expectation of Rs 1,200 crore turnover this year. Another area where Canon sees huge potential for achieving these ambitious plans for growth is in new markets, such as Tier-II and Tier-III cities where it plans to open more outlets and service centers. Canon has also launched a large-scale marketing campaign called 'Canon on Wheels' to showcase its products. This will involve seven trucks carrying a range of Canon products traveling through 38 towns by February, 2011 in a form of road show.
Epson to increase focus on marketing solutions
E
pson India, the local arm of the global printer and imaging products company Seiko Epson, targets Rs 500 crore of revenue this financial year. The company will focus on solutions rather than just selling products. “We will be spending close to 15 per cent of revenue this year on marketing solutions in our key verticals including banking and financial institutions, retail, education and small and medium businesses,” said SM Ramprasad,
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senior business manager, consumer products group, Epson India. “Our last year’s revenue was close to Rs 400 crore and despite widespread talks of an economic slowdown, Epson’s sales grew at about 25 per cent over the previous year,” Ramprasad said. As part of its marketing strategy, the company initiated a 10-city partner engagement program in July. Epson aims to reach out to about 3,000 system integrator
partners through the nSolution program, he added. Epson markets scanners, projectors and dot matrix, inkjet and laser printers. Some of the company’s latest solutions include projector solutions for schools, retail stores and hotels. “Wi-Fi based printing and projector solutions are other upcoming technologies we will market this year. The focus for this fiscal is to enable partners to sell Epson solutions more effectively,” Ramprasad said.
Recycling Times Magazine
OEM news
Samsung India expects robust 60% growth in current fiscal
S
amsung India Electronics Private Limited is aiming to garner a business turnover of 3.5 billion dollars in the current fiscal, a close to 60% growth from last year's 2.2 billion dollars. Addressing a press conference, Company Deputy General Manager Ravinder Zutshi said through aggressive plans the company was aiming to achieve a sales turnover of Rs 500 crore (about $100 million) in Kerala. The company will rely on its new innovative products its energy efficient home appliances products to achieve the targeted sales, Mr Zutshi said. During the Onam season between July and September, the company was expecting a sales turnover of Rs 230 crore (about $50 million)
from audio-visual products and Rs 120 crore (about $25 million) from home appliances. In mid-July Samsung India launched the world’s smallest laser printer named ML-1666 which can print up to 16 pages per minute. The price of ML-1666 is in India. It comes with the full starter toner of 1,500 pages, the standard one year onsite warranty and an additional two year warranty on this printer. Additionally, Samsung announced three other mono laser printers named ML-1911, ML-2526 and ML-2581N. The features of ML-1666 include: • Launches 8 new models of Mono Laser Printers, Network Printers and Multi Function Printers. • Targeting 30% market share in Laser
printers (A4 Size). • All these printers have a monthly duty cycle of up to 12,000 pages, 8MB memory, up to 24 pages per minute capacity and boast 'Printelligent' features like Toner Save, Smart Panel, One Touch print screen and AnyWeb printing. • Samsung also unveiled the multifunction printer range named SCX-4601, SCX-4623FH and SCX-4623FN in which first two are normal multifunction printers whereas the last one is a network-ready MFP. • All the printers boast an impressive 22ppm and other features that are optimal for use in the SMB environment. The prices of the printers are as follows: SCX-4601; SCX-4623FH; and SCX-4623FN.
Fuji Xerox (Thailand) wins the Green Products and Service Company Award
F
uji Xerox ( Thailand) Co., Ltd., a sales company of Fuji Xerox Co., Ltd., won the Green Products and Service Company Award organized by the Thai Environment Institute under the Federation of Thai Industries, for continuous efforts to reduce the environmental impact of its business activities. As one of three winners chosen out of 52 companies, Fuji Xerox (Thailand) received the award from the Thai Minister of Natural Resources and Environment on June 4. The award recognized the company's efforts in two areas: energy-saving products and its procurement activities. Fuji Xerox (Thailand) has been acquiring the Thai Green Label for 40 multi-functional device models, including ApeosPort series, from the Thai government since 2004. The company also practices environmental procurement, supporting a greener market by choosing to purchase products such as office supplies and stationery that have less effect on the environment.
"Our corporate activities have complied with the winning criteria for this award," said Masashi Honda, president of Fuji Xerox (Thailand). "Fuji Xerox has been pursuing a strong commitment to continuously produce environmentallyfriendly products, and we are very proud that we help our customers reduce their environmental impact. We continue our eco-conscious efforts." Fuji Xerox (Thailand) aims to lead the industry
through various initiatives emphasizing corporate social responsibilities. The 2010 Green Products and Service Company Award is a testimony for the success of its environmental initiatives. With a company-wide goal of reducing Fiscal year 2005 CO2 emissions by 30 percent by 2020, Fuji Xerox and its affiliates continually offer eco-conscious solutions through products and services to customers in the Asia-Pacific region and Japan.
▲ Masashi Honda (second from left), president of Fuji Xerox (Thailand), accepting the Green Products and Service Company Award
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
OEM news
Xerox launches monochrome laser MFP WorkCentre 3550
X
erox has introduced the WorkCentre 3550, a monochrome laser multifunction printer. The 3550 can print at up to 35 ppm and is geared to small- to medium-sized businesses. Features include standard duplex printing and a 50-page duplex automatic document feeder (ADF). The 3550 has a standard paper capacity of 550 sheets, with optional expanded paper capacity of up to a total of 1,050 sheets; it takes a maximum paper size of 8.5x14 inches and has a 14-inch platen for scanning. It has a maximum
optical print resolution of 600 dpi. Among the 3550s other printing features are secure print, which keeps documents from printing until users provide a PIN code to release the job; print-from and scan-to USB thumb drive functionality on the front of the MFP. Scanning and faxing features include network scan to PC, scan-to-e-mail, and fax-forward-to-fax/e-mail. It can also scan to include scan to FTP and SMB sites, USB memory device, and scan directly to applications including optical character recognition (OCR).
The WorkCentre 3550 is available immediately and starts at a list price of $1,099.
Canon launches recycling campaign in Philippines
H
oping to encourage inkjet printer users to participate in earth conservation efforts, Canon Philippines will be fielding recycling bins for used ink cartridges in major malls in Metro Manila. Canon has also launched a recycling campaign to recycle toner cartridges. With the program, printer users can place their empty printer cartridges in designated recycling bins inside Canon concept stores in malls. Recycling bins for used ink cartridges will be set up across various sites in Metro Manila, in the
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Philippines. The scheme forms part of Canon GreenNation, an environmental awareness program that raises knowledge of disposal of ink and toner cartridges. GreenNation sees recycling bins placed in convenient locations for users to deposit their cartridges for recycling, the news provider said. Canon hopes the campaign will spur printer users to think carefully about ink cartridge disposal and in doing so help them to support environmental issues, the news source said. Safe disposal of spent ink cartridges will
be reprocessed and recycled in Canon manufacturing plants after collection. Canon claims its disposal method for ink cartridges drastically reduces landfills to approximately 86 percent by separating components such as metal, plastics, sponges and ink residues and re-using the parts that can still be recycled. The same month, Canon Marketing Philippines Inc. sees sales breaching the P4-billion mark in 2010, 25 percent better than what was registered in 2009. Canon Philippines president Alan Chng (pronounced "chung") said this expected sales growth would be driven mainly by the release of new models of cameras, copiers and printers throughout the year. “We are one of the fastest growing markets in Asia, just after China and India,� Chng said, noting that in terms of camera sales, the company was faring better than it had been for the past six years. He said Canon Philippines currently enjoyed an almost 50-percent share of the camera market in the country. To further boost sales, he said Canon Philippines planned to expand its presence in areas outside Metro Manila, in addition to its offices in Cebu, Davao, and Legaspi.
Recycling Times Magazine
Features
Canon takes on replacement toner cartridges On June 28, 2010, Canon Inc., Canon U.S.A., Inc. and Canon Virginia, Inc. (collectively, “Canon" filed a complaint requesting that the USITC (United States International Trade Commission) commence an investigation pursuant to Section 337, claiming that Ninestar, its affiliates and a number of American resellers infringed two of Canon’s patents for laser printer cartridges. Since Epson filed a complaint to the USITC in 2007, terms as such “USITC” and “Section 337” have been familiar to the printer supplies aftermarket. Major OEMs Epson and HP have tried to stop replacement inkjet cartridges from being exported to US soil. Epson successfully had the USITC issue a General Exclusion Order to ban infringing inkjet cartridges in the US. However, Canon’s latest complaints are not aimed at inkjet cartridges. The fire is now opening on laser cartridges. It is not the first time Canon has brought a third-party laser cartridge manufacturer to court, but the impact of this Canon vs Ninestar et al case will probably be stronger than before. 1. A closer look at the case First, let’s take a closer look at this Canon vs Ninestar et al case. Besides the complaint to the USITC, Canon filed a lawsuit against the same defendants in the District Court for the Southern District of New York on June 28, 2010. Defendants Defendants allegedly infringing Canon’s patents include: Ninestar Image Int’l, Ltd. Ninestar Technology Co., Ltd. Ninestar Management Co., Ltd. Zhuhai Seine Technology Co., Ltd. Seine Image Int’l Co., Ltd. Ninestar Image Co., Ltd. Ziprint Image Corp. Nano Pacific Corp. Ninestar Tech. Co., Ltd. Town Sky, Inc. ACM Technologies, Inc. LD Products, Inc. Printer Essentials.com, Inc. XSE Group, Inc., Copy Technologies, Inc. Red Powers, Inc. Direct Billing International, Inc.
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Compu-Imaging, Inc. EIS Office Solutions, Inc. 123 Refills, Inc. In the complaint, Canon separates the Respondents into two categories. The first group is the so-called “Ninestar Respondents" which, according to Canon, are all under common ownership and control. The Ninestar Group is alleged to infringe by manufacturing toner cartridges and importing them into the United States. The second group is the “Retailer Respondents" who allegedly infringe through sales of the toner cartridges manufactured by the Ninestar Respondents. Patents The patents in this lawsuit are two nearly identical patents: United States Patent No. 5,903,803 (“the ‘803 patent”), and United States Patent No. 6,128,454 (“the ‘454 patent”). Both patents are related to the process cartridge/drum with “twisted projection”. But the ‘803 has 146 claims while the ‘454 has only 62 claims. (See following table) Cartridge models Canon includes a long list of the allegedly infringing cartridge models for both Canon and HP laser printers, ranging from the older models such as FX6, 4096, 4127, 4129, 7115 to the newer models CB436 and CB364. In the complaints, Canon lists 98 of Ninestar’s laser cartridge models.
Recycling Times Magazine
Features
Number/Claims 5,903,803 Asserted claims 128-130, 132, 133 and 139-143, independently claiming for Process cartridge and Drum separately
Issued Date
Title of Patent
May 1,1999
Process cartridge, Electrophotographic Image Forming Apparatus, Driving Force Transmission Part, and Electrophotographic Photosensitive Drum
Oct.3, 2000
Process cartridge, Electrophotographic Image Forming Apparatus, Driving Force Transmission Part, and Electrophotographic Photosensitive Drum
6,128,454 Asserted claims 24-30 claiming Drum directly
Remedy Canon seeks a permanent limited exclusion order and permanent cease and desist orders directed to the proposed respondents. 2. Industry Response The day after Canon filed the complaint, we tried to seek a response from the major defendant Ninestar. Ninestar’s spokesperson didn’t give further comments on the issue. Instead Ninestar released the following statement: Lately, Ninestar Image Int’l Ltd was informed that Canon Inc. filed 337 investigation claims through the U.S International Trade Commission (ITC) over a series of toner cartridges which had stopped being for sale long time ago to the United States market. Canon Inc. is the pioneer of global imaging technology and an admirable leading company in the industry. Ninestar always honors Canon’s patents on imaging output technologies. Ninestar is now amply analyzing the patents involved and the contents of the claim. Right after news about the Canon vs Ninestar et al legal dispute was released, it has become the hottest topic in the industry. The concern is that compatible laser cartridges will follow the footsteps of compatible inkjet cartridges. Most people agree that Canon’s 337 complaint will have a strong impact in the industry, but refuse to predict what will happen next as the case is still at its earliest stage. Steve Weedon, Executive VP of Static Control, comments, “This action is very important and may have consequences for the compatible cartridge market and potentially for the genuine remanufacturing market. If successful in blocking imports to USA, it would be logical for Canon to try and block in Europe also. Canon only filed action on 28th June 2010, so it is too early to make any real conclusions.” Art Diamond, President of Diamond Research forecasts, “I do think this is the beginning of a series of court actions that Canon, and most likely HP, will take against toner cartridge manufacturers. Are the terms ‘compatible cartridges’ and ‘new molds’ merely euphemisms to describe what might ultimately be ruled as counterfeits? Also, will Canon accept a royalty from these aftermarket suppliers as settlement for the patent infringement claims? If not, we can expect Canon to take a page from the Epson ‘play book’ and prohibit the importation
of these infringing cartridges into the USA.” Vincent van Dijk of ETIRA says, “It will certainly not be the last legal action in toners. And we understand that similar action may well be taken in Europe later this year too.” Dr. Aydan Bekirov, Publisher of RechargEast, remains optimistic, saying, “If you turn back and analyze old OEM-Aftermarket battles, you will see a clear trend that our industry is usually finding proper solution. ‘Life goes on’ and OEMs may win individual ‘battles’, but they will never win the ‘war’. They are changing and we are changing all the time. The truth is that we are ‘sentenced’ to live together. We are both needed (usually in crisis times, we are even more needed than OEMs...) ” Tony Lee, Publisher of Recycling Times, also shares the optimism, “A lawsuit is not always a bad thing. It can help to regulate the industry. After the Epson 337 case in 2007, more companies invested in remanufacturing and improved the quality of remanufactured cartridges. Consumers demand alternatives to high-priced OEM supplies. Then there is market for good quality replacement products. Third party manufacturers will learn the lesson and adjust very quickly. ” 3. Why Canon is taking action In recent years, more Chinese manufacturers have put investment into laser cartridges, for two main reasons: 1. Compatible inkjet cartridges lost the largest US market due to USITC’s general exclusion order stopping importation of infringing compatible inkjets; 2. Laser printers, especially monochrome laser printers took a larger market share. And the price for the laser cartridge is still very good. The margin in the laser cartridge is very tempting for aftermarket supplies manufacturers. With the economic recession in 2009, alternative printer supplies took a large market share from the OEM. According to InfoTrends, in the United States and Europe HP has been losing over 30% of its cartridge market to aftermarket and that with the beginning of the recession that loss has jumped. It is estimated that HP may be losing on average as much as 40% of its market in this recession. HP is losing 50% for some of the older and larger selling cartridge models. www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Features
Senior Consultant at InfoTrends, Cathy Martin says, “The recession has affected printing in many ways. Namely, customers have sought ways to be more economical and have considered aftermarket products as a lower cost alternative to the OEM and there is generally less printing since there are less workers and stricter guidelines about printing. The OEMs have certainly observed this and in order to protect their supplies business they are protecting their intellectual property through legal action or filing complaints with the ITC.” In May 2009, Canon U.S.A. and Canon Virginia announced opening of a $640 million new cartridge production facility near Newport News, Virginia. The new plant manufactures, recovers and recycles cartridges. Attorneys Eric Schweibenz and Andrew Beverina revealed: in Canon’s complaint to US ITC, Canon states that it satisfies the economic prong of the domestic industry requirement in view of (1) Canon Virginia’s manufacture of millions of toner cartridges each year which are covered by the patents-in-suit, (2) employment of a significant number of employees in the United States, (3) Canon Virginia’s product and manufacturing engineering activities, and (4) Canon Virginia’s plans to manufacture additional toner cartridges covered by the patents-in-suit. Further, the technical prong is satisfied because Canon Virginia produces, or will produce, toner cartridges covered by at least one claim of each of the patents-in-suit. Steve Weedon of Static Control says, “Canon have a very large investment in a new cartridge manufacturing plant located in Virginia. I am sure they are protecting this investment by trying to block imports of infringing cartridges.” This is not the first time Canon has taken action against a replacement toner cartridge manufacturer. On May 1, 2006, Canon filed suit against the GCC Group and TallyGenicom. Canon alleged that the defendants market products that use infringing technology to rotate OPC drums in toner cartridges to ensure that the drum is synchronized with a printer or fax machine. GCC Group manufactured and sold 100 percent new toner cartridges for Canon and other printers. The patent in dispute was U.S. Patent No. 6,336,018 ("the `018 Patent"), entitled "Electrophotographic Image Forming Apparatus, Process Cartridge, and Drive Mount for Photosensitive Drum." The industry has witnessed the consequence of this lawsuit brought to GCC. IP is one of the ways for OEMs to limit the competition from the third party suppliers. Epson’s success in getting the General Exclusion Order from USITC showed HP and Canon a more powerful “weapon of mass destruction”. Unlike the patent infringing lawsuit in the district courts, working through the USITC, only by targeting only a small group of defendants, Canon will have the opportunity to exclude all compatible toner cartridges suppliers from American soil. Thus Canon can best protect its interests and its huge investment. Just about a month ago, in May 2010, Canon filed five complaints with
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the Korean Trade Commission, claiming their patent was infringed by five Korean OPC drum manufacturers, including AlphaChem, Baiksan OPC, CEMS, NeoPhotocon and Park & OPC. The patent allegedly infringed is Korean patent registration No. 1002586090000, with the title of invention “Process cartridge, Electrophotographic Image Forming Apparatus, Driving Transmission Part and Electrophotographic Photosensitive Drum”. This registered patent is very similar to the two patents in the Canon vs Ninestar et al case. A toner cartridge remanufacturer speculates, “It seems that Canon’s ambition is not just about excluding compatibles from the US market. It may intend to strike at the roots of aftermarket toner cartridges manufacturing.” 4. What will happen next? Next we will wait and see if Ninestar is going to fight against Canon in the USITC and in the District Court. The US Patent & Trademark Office (USPTO) has raised the bar on patents. So it is much more difficult to prove novelty and invention. If the defendants decide to fight the cited Canon patents on their merits, they will have a better chance of winning today than 10 years ago. This is a time for Ninestar and other defendants to scrutinize each patent and determine the chances of having it declared invalid. A patent attorney indicated that there is a chance to prove the patents are “not innovative”. An industry observer speculated Ninestar might take a different approach. Recently Ninestar announced it would soon start producing printers. Sources indicate that the printer technologies are licensed from one of the major OEMs. If Ninestar is going to produce laser printer and the cartridges, Ninestar may be able negotiate a license agreement with Canon. Legend Capital, a subsidiary of Legend Holdings Ltd. who also owns Lenovo, is one of the shareholders in Ninestar’s printer project. In December 2009, Ninestar and Canon reached a settlement agreement over the patent dispute in 7e Series inkjet cartridges in Japan. What will happen to the printer supplies aftermarket as a whole? Jose Bustamante, Director of Spain’s Consumibles Magazine looks at the bright side, “It would be good if these actions cleaned up the
Recycling Times Magazine
Features
market place of unfair competition (companies infringing IP laws). That would be a good outcome of this action, as it would clear the way for the remanufacturing companies and those compatible manufacturers who abide by IP laws.” After the “Epson 337” case, more remanufactured products are being seen in the market. As for laser, most Chinese manufacturers started to produce laser cartridges after “Epson 337”. Many of them realized there would be high risk in producing compatibles. So they remanufacture toner cartridges. Vincent van Dijk from ETIRA strongly advocates remanufacturing, “Remanufactured products are not only less expensive but also better for the environment because remanufacturing implies you do not need the natural resources like oil, aluminium and paper that go into producing a new cartridge. Moreover, remanufacturing typically does not infringe patents, because legally it is considered as “permissible repair”. So in general we feel that when legitimate OEM patents are infringed, the OEM is entitled to act against the companies doing the infringement.” However, the market demand for alternative toner cartridges is high, especially during the recession. Conversely empties have become scarce and the cost of collecting is high. A Chinese manufacturer expressed his dilemma, “Yes, we remanufacture. But we never get enough empties to produce the quantity our customers order. On one hand the price of the empties and production cost are increasing, on the other hand the price competition of the cartridges is so fierce. Sometimes we just dare not take more orders from customers.” He continues, “I can understand why some manufacturers use new molds, because they can produce whatever amount needed by their customers. With the large orders in front of you, it’s hard to resist the temptation. Some companies even have their R&D teams trying to design ‘patent-free’ cartridges.” He also showed concerns about the impact of the recent Canon patent disputes on remanufacturing, because “it doesn’t seem only about new molds.” Conclusion It’s still an early stage for the Canon vs Ninestar et al case. This case is sure to have an impact on the printer supplies aftermarket. But in the long run, this investigation and litigation will benefit the industry. The knowledge in and respect to intellectual property will be reinforced. Instead of pursuing large quantities, different companies should focus on technology, quality and environment. The market demands alternatives to OEM printer supplies with good quality and a better price. Consumers’ environmental awareness is getting stronger. Governments in different countries advocate a green economy, so does China. Therefore, the printer supplies aftermarket will still grow as long as the industry plays the game by abiding by rules. Of course, we can also challenge the “non-innovative”, “non-creative” patents that exist simply for the purpose of eliminating competition.
Further reading Patent No. 5, 903, 803 Abstract: An electrophotographic image forming apparatus for forming an image on a recording material includes an electrophotographic photosensitive drum; a charging device for charging the photosensitive drum; a developing device for developing a latent image formed on the photosensitive drum into a toner image; a transfer device for transferring the toner image onto the recording material; a fixing device for fixing the toner image on the recording material; a motor; a main assembly side gear for receiving driving force from the motor; a twisted hole formed substantially at a center of the gear, the hole having a polygonal cross-section; a twisted prism projection provided at a longitudinal end of the photosensitive drum, wherein when the main assembly side gear rotates with the hole and projection engaged with each other, rotational driving force is transmitted from the gear to the photosensitive drum through the hole and the projection with the projection being pulled into the hole; and a moving device for imparting relative movement between the hole and the projection in a longitudinal direction of the photosensitive drum. Patent No. 6,128,454 Abstract: An electrophotographic image forming apparatus for forming an image on a recording material includes an electrophotographic photosensitive drum; a charging device for charging the photosensitive drum; a developing device for developing a latent image formed on the photosensitive drum into a toner image; a transfer device for transferring the toner image onto the recording material; a fixing device for fixing the toner image on the recording material; a motor; a main assembly side gear for receiving driving force from the motor; a twisted hole formed substantially at a center of the gear, the hole having a polygonal cross-section; a twisted prism projection provided at a longitudinal end of the photosensitive drum, wherein when the main assembly side gear rotates with the hole and projection engaged with each other, rotational driving force is transmitted from the gear to the photosensitive drum through the hole and the projection with the projection being pulled into the hole; and a moving device for imparting relative movement between the hole and the projection in a longitudinal direction of the photosensitive drum.
www.recyclingtimes.com.cn | August 2010
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Key employment tips for China operations By Iris Cheng and Jenny Wang at Deacons Iris Cheng of Deacons' Hong Kong office and Jenny Wang of Deacons' Shanghai office are lawyers in Deacons' China Trade & Investment practice group and specialize in advising on legal aspects of investment and business activities of foreign investors in the People's Republic of China. In this issue, they are going to talk about several key points for operations in China. A number of laws and regulations have been promulgated in the past few years to introduce a series of changes to the existing PRC Labour Law, among which the key legislations are the PRC Labor Contract Law effective on 1 January 2008 and its detailed implementing regulations effective on 18 September 2008 ("Laws"). Generally speaking, the Laws are comparatively tilted towards the employees and they tend to impose more obligations on the part of the employers to protect the interests of the employees. With the implementation of the Laws, many enterprises, especially those established by foreign investors with relatively little PRC law background, have started to experience a heavier burden from a human resources perspective and become aware of the increasing necessity for exercising extra care and adopting appropriate measures or adjustments to adapt to the current legislative changes. This article reviews the recent key PRC legislative changes on the employment regime and proposes certain proactive approaches to enable employers to better position
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themselves to deal with the potential challenges and to minimize their exposure to the potential risks of employment disputes. 1. Written employment contract with mandatory provisions required The Laws have strengthened the requirements of employment contracts both in form and substance. The Laws compulsorily require that an employer should enter into written employment contracts with its employees, subject to certain exceptions (e.g. employees hired on part-time basis). The Laws also require that certain mandatory provisions such as basic terms and conditions concerning the information about the employer and the employee, employment term, job description, working place, working hours, remuneration, social security, etc. be included in an employment contract. Where the mandatory provisions are missing, the employer may be requested by the Chinese authorities to rectify and may also be required to indemnify the employee if damages to the employee are caused. Failure to properly conclude a written employment contract, for reasons not attributable to the employee, may be a costly mistake to an employer as the Laws provide detailed remedies to the employee under such circumstance. In summary, in the event that an employer fails to conclude a written contract with an employee for a period of more than one month but less than one year, twice such employee's monthly salary should be paid to the employee per month as penalty within that period; and in the
Recycling Times Magazine
Management
event that the period lasts over one year, the employer would be deemed to have entered into an open-ended employment contract (i.e. an employment contract with no definite expiration date and thus will not be terminated automatically by effusion of time upon expiry) with the employee. 2. Necessity of a well-drafted employee handbook Whilst an employer is not legally required to have an employee handbook in place, it would be prudent to set down a clear, legitimate and consistent internal company policy especially concerning sensitive issues where employment disputes may easily arise such as overtime payment claims procedures, disciplinary actions imposed against certain misconducts, the internal dispute settlement mechanism etc. in the form of an employee handbook, not only for human resources administration purposes but also, more importantly, for preventing or resolving employment disputes. If an employer has a well-drafted employee handbook which explicitly specifies the rules and policies that its employees should comply with and that certain misconducts constituting serious violation may result in dismissal, it will be easier for the employer to justify a legitimate dismissal on the grounds that the employee has seriously violated the employer's policy by adducing the employee handbook as evidence in case of disputes, although each case will at the end of the day be tried on its own merits. In formulating or amending an employee handbook where certain material matters that have a direct bearing on the employees' immediate interests will be affected, it is important to make sure that the prescribed procedures under the Laws (e.g. consultation with the labor union) are followed. 3. Employment term and probation period to be thoroughly considered Conclusion of employment contracts with a longer employment term are encouraged by the Laws which aim at securing a more stable employment relation by clamping down on the use of casual or short-term contracts. In particular, a fixed-term employment contract should be
converted into an open-ended employment contract if the employer and the employee have concluded a fixed-term employment contract on two consecutive occasions unless the employee requests to have a fixed-term employment contract. An open-ended employment contract may be more difficult and costly to be terminated by the employer as it will not be terminated upon the expiry of the employment term and the employer will need to rely on other statutory grounds of termination. Therefore, in determining the length of the employment term for a particular employee, due and overall consideration should be given by taking into account the long-term employment strategy, the business needs of the employer as well as such employee's performance, competency and potential.
According to the Laws, the probation period is subject to the statutory maximum length ranging from 1 month to 6 months which should be determined in accordance with the length of the employment term. During the probation period, an employer may summarily dismiss an employee without severance payment if such employee is proved not to meet the recruitment requirements. It is important that an employer determines the length of the probation period and the employment term with great caution in order to comply with the Laws. 4. Non-compete obligations Non-compete protection of an employer is available under the Laws which provide that senior management employees, senior technical employees and other employees who have access to the confidential information of an employer may be restrained from engaging in any competing business during the non-compete period. Pursuant to the Laws, the noncompete period commencing from the termination of www.recyclingtimes.com.cn | August 2010
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the employment contract should not exceed 2 years whereas the scope of the restricted activities and geographic regions are for the employee and employer to negotiate. Unlike the restrictive covenants in other jurisdictions, in China, in consideration of imposing the noncompete obligations, economic compensation is required for such obligations to be enforceable. Such economic compensation should be paid by the employer to the employee on a monthly basis after the termination of employment. The Laws have not provided a specific amount or calculation formula for the economic compensation which seems to be negotiable by the employer and employee. In this regard, some local regulations have provided a more detailed guidance to fill the gap and employers should pay attention to the local regulations where applicable. 5. Limited statutory grounds of termination Unlike the case in some Western jurisdictions where an employee may be dismissed at-will without cause with or without notice, the concept of "at-will employee" does not exist in China. The Laws provide greater security to the employees by not allowing them to be laid off abruptly without legitimate grounds. In China, an employer may only terminate the employment relationship on any of the following grounds prescribed by the Laws: (1) mutual agreement (where the employer and the employee reach agreement on termination); (2) summary dismissal (where the employee has committed fraud, dishonesty or other gross misconduct, etc.); (3) termination by notice with statutory causes (where termination could be undertaken subject to certain statutory causes by serving one month's prior notice or paying one month's salary in lieu of notice); and (4) economic redundancy (where the number of employees to be laid off is more than 20 people or 10 percent of the total workforce of the employer subject to certain statutory causes). Whether notice period and severance payment are required depends on which termination ground is involved. Given the sensitive nature of dismissal in China, before initiating the termination, an employer should make sure that it has a legitimate reason for doing so which is based on the actual facts and could be substantiated by adequate evidence preferably documented in writing. Otherwise, the
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employer will likely open itself to arbitration and/or litigation for wrongful termination and considerable layoff costs may be incurred. If the dismissed employee's claim for wrongful termination is upheld by the authority, the employer may be required to continue to perform the employment contract if so requested by the employee or pay twice the statutory severance payment to the employee as damages. 6. Calculation of severance payment In China, an employer is required to make severance payment to an employee for termination based on certain statutory grounds (e.g., mutual agreement, termination by notice with statutory causes, etc.). The general position under the Laws is that the amount of severance payment should be calculated based on the number of years an employee has worked for an employer, subject to the prescribed circumstances where there may be a cap on the amount and the years of service for the purpose of calculating the severance payment. In summary, one month's salary is payable for each year (including any period of more than 6 months) of service whereas half a month's salary is payable for a period of less than 6 months. As the PRC Labor Contract Law with the new provisions relating to the severance payment came into effect on 1 January 2008, complexity may exist in terminating an employment contract commenced before 1 January 2008 pursuant to the Laws. Due attention should be paid to the calculation of severance payment for such transition period under the Laws. It is advisable to seek professional advice and in determining the severance payment to ensure the amount complies with the legal requirements to avoid potential disputes with the employee.
Recycling Times Magazine
Management
7. Termination procedure to be taken care of The Laws introduce more formal procedures for the termination of employment that call for strengthened human resources management mechanisms such as better record filing and documentation maintenance, etc. An employer is obligated to duly attend to the relevant formalities after the termination of the employment relationship in a timely manner, e.g., to issue to the employee a proof indicating the termination of the employment contract and to transfer the
demand on a well-established internal human resources management system of an employer. Chances of the employer's position being upheld by the authorities may be increased if adequate documentation is kept and maintained with good recordkeeping adduced as evidence to substantiate the defense, e.g. attendance record, performance assessment report, and on official written record of the employee's misconduct.
files and social security accounts for the employee within 15 days after the termination. The written employment contract is also required to be duly kept and maintained as the employer's records for at least two years after termination.
9. Local legislation and practice Although a more clear and detailed guideline on the
8. Increasing employment disputes to cope with In the past, an arbitration fee is required if an employment dispute is referred to arbitration. However, application for employment arbitration is now free of charge after the implementation of the PRC Law on Mediation and Arbitration of Labor Disputes. Given the low cost of instituting legal proceedings against an employer, it has been reported that the number of employment arbitrations has substantially increased mainly because the employees may easily file a claim if they are dissatisfied with the acts of their employers even without a due cause for the claim or sufficient supporting evidence. On the other hand, a heavier burden of proof is placed on the employer to provide the arbitration tribunal with the relevant evidence that should be in its possession, such as the employee's profile, payroll records, information concerning the payment of social security, etc., failing which may result in the unfavorable outcome of the case. The aforesaid legislative changes place significant extra
employment regime has been provided under the state-level legislation, there still remain some ambiguous areas that need to be further elaborated or clarified. Some local authorities have therefore issued local regulations further interpreting these ambiguities according to their local practices to fill the gap. Whilst such practice is helpful in solving various practical issues, it, at the same time, may result in inconsistencies in the enforcement of the Laws in different localities in China. It is not uncommon to get inconsistent or even conflicting responses to the same issue from different local authorities. Therefore, employers, especially those multinational enterprises with presence in more than one locality
About Deacons Deacons is a leading business law firm based in Hong Kong with a network of affiliated firms across Asia. It provide an extensive range of legal and commercial services to local and international corporations with business interests throughout this region. With over 155 years of experience, Deacons principal service areas include banking & finance, China trade & investment, communications & technology, company formation & corporate services, compliance services, construction & arbitration, corporate finance & capital markets, entertainment & media, financial services, human resources & pensions, insolvency & restructuring, insurance, intellectual property, Japan services, litigation, M&A and commercial, private equity & venture capital and property. Beyond the firm's headquarters in Hong Kong and three representative offices in China (Beijing, Shanghai and Guangzhou), Deacons has established offices or affiliates in Malaysia, Taiwan and Thailand, ensuring we are conveniently located to provide market-sensitive legal advice. www.recyclingtimes.com.cn | August 2010
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in China, should note that the employment issues they encounter may need to be separately addressed subject to the local regulations, local practices and the local government authorities' positions which may differ from one locality to another. Conclusion As a consequence of the more employee protective employment policy currently adopted in China, an employer should have a better awareness of their implications and the risks associated and protect itself from any potential arbitration and litigation by taking due care in hiring and dismissing its employees and maintaining the employment relationship to make sure that they are in full compliance with the statutory requirements under the relevant laws and regulations at both the state and local levels, the local
practice and the employer's internal policy. If comprehensive and effective human resources management and recordfiling systems are established by the employer to maintain adequate documentary proof as to the reasonableness of its action, the employer may be in a better position to deal with the legal proceedings and may be more likely to get a favorable outcome when an employment dispute is triggered. In case of doubt, it is advisable that legal advice be sought in order to prevent employment disputes from arising, or to resolve any employment disputes already arisen in a timely manner to minimize any impacts on the business operation, the employment relationship and the morale within the company. Please email the authors at iris.cheng@deacons.com.hk or jenny.wang@deacons.com.cn with questions about this article.
Jenny Wang Jenny Wang is admitted to practice in the People’s Republic of China in 2008 and now based in Deacons Shanghai office, Jenny mainly advises on the legal aspects of investment and business activities of foreign investors in China and has experience in the following areas: • Advising on the establishment of appropriate investment vehicle or business presence in China, such as foreign invested enterprises (Sinoforeign joint ventures, wholly foreign owned enterprises), branches and representative offices; • Assisting foreign investors in the acquisition of assets or equity interests in foreign invested enterprises and domestic enterprises in China; • Advising on the employment structure, related employment regulatory matters, commercial contracts, corporate compliance issues including foreign exchange, customs and tax in China;
Iris Cheng Iris Cheng is expertise in advising on legal aspects of investment and business activities of foreign investors in China including: • Establishment of appropriate investment vehicle or business presence in China, such as foreign invested enterprises (Sino-foreign joint ventures, wholly foreign owned enterprises), holding companies, branches and representative offices; • Corporate restructuring, mergers and acquisitions; • Commercial contracts relating to China such as distribution (agency, wholesaling, retailing and franchising), processing trade, manufacturing and supply, technology transfer and licensing; • Regulatory compliance issues including customs, foreign exchange, labor and tax. • Advising on the impact of the Mainland and Hong Kong Closer Economic Partnership Arrangement (“CEPA”) and assisting China-Appointed Attesting Officer in the preparation of notarization documents for the application of Certificate of Hong Kong Service Supplier under CEPA. Iris is also a member of the Law Society of Hong Kong
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Recycling Times Magazine
Showcase
How to choose an effective trade show A trade show is a place where a company shows its image and brand, as well as where manufacturers, dealers, wholesalers and distributors communicate and network. Exhibitors can also conduct research during a trade show and take the pulse of trends and developments in the industry, so that a plausible strategic plan can be made. A trade show is also a surprisingly lowcost marketing media. Studies show that the cost of searching for a customer at a trade show on average costs you only one sixth of the cost of promotion activities or advertising. Therefore, trade shows should be an important part of your marketing activities. Many companies in the industry have recognized the importance of the trade show. However, many may not have a very clear understanding of how to choose an effective one. This article talks about how to find the perfect trade show for your promotion plan. 1. The goal of the show To decide whether or not to exhibit or visit a show, you need to see whether the goal of the trade show fits with your marketing purposes. Define its aims and see whether it can help you reach your target audience. 2. Show date The show dates may have more impact than you have ever thought about. Take the bigger picture in consideration. What timings work for exhibitors and visitors? Professional buyers are unlikely to go out on business trips or take part in sourcing activities around major holidays.
Make sure you have time available after a trade show. During this period you need to follow leads and make your presence felt among potential customers you met at the show, to demonstrate your unique advantages on price, services and quality and differentiate your products from your competitors. The two months following a show are also very important for large business deals. If you fail to take action on a regular basis after a show, customers may soon forget who you are. In this way, the effectiveness of the show is deeply compromised. If a trade show is held around the dates of related shows, you may be able to combine them, making your trip much more worthwhile than if you were just visiting one show. In China, there are several shows related to the printing industry, including the China Sourcing Fair held by Globalsource, the Hong Kong Electronics Fair and the China Import and Export Fair. Weather conditions are also important. A well-planed show should enjoy prime weather conditions and offer pleasant temperatures for exhibitors and visitors. 3. Venue In general, there are two critical location factors influencing the
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Recycling Times Magazine
Showcase
appropriateness of a show. One is a location near a consumer market, such as Recharger's World Expo. The organizer selects a dynamic city or a city that everyone would like to pay a visit to. Exhibitors can experience the local culture and explore the market nearby. If it is possible, exhibitors can also go and check out visitors’ factories and have a deeper understanding of the strengths of a company in order to provide a specific solution for a customer. Another perfect venue for a show is close to manufacturing sites, as with RemaxAsia Expo. Enjoying an easy distance from factories means visitors can go and visit companies and working factories. Exhibitors need to promote factory tours before the show if necessary. When deciding whether to join a show, you also need to see whether the market volume is big enough and pay attention to the customs policy. 4. Show data There are several important figures to look at before judging a show. They include the anticipated number of exhibitors, number of visitors, global coverage and visitor traffic. Visitor traffic is the most important factor. Apart from historic data, companies also need to see where the market is going and schedule a particular show into their year plan.
fully devoted to the industry, more valuable buyers will come. • The potential of the organizer. Normally, an organizer with passion will bring more results than expected. 7. Added value When choosing a trade show you should also look at the whole package offered by the trade show organizer. A trade show that may appear expensive may in fact offer excellent value for money. Will the booth on offer be a simple “pole and drape” affair or will you have a more professionallooking construction? Is the organizer offering you assistance with finding hotels, or better still, obtaining a discount on accommodation? How big is their customer database? Are they offering you publicity in their show guide or other media? Will there be any extra networking events or training opportunities? All these add value and you should weigh up exactly how much these extras are worth to you.
5. Professionalism Professionalism is another factor deciding whether a show is attractive to visitors and exhibitors. Professionalism means factors such as whether the exhibits are industry-related, if the service provided by the organizer is good and if the layout of the floor plan is reasonable.
8. The Trends of a show Some compare choosing a show with buying stocks. Your choice is affected not only by past performances of the stock but also sales revenue, personnel changes and comments from counterparts.
6. The organizer A show is a complicated system. The organizer has to be professional to provide a great show. It is hard to believe that somebody who hardly knows the industry can deliver a good show. So you need to know about the organizer before making decisions. • Check the background of the organizer. Those who have an insight into the industry know what the visitors need. • The influence of the organizer. The more influential an organizer is, the better it is for promotion. A well-know organizer’s name travels fast and far. • Is the organizer committed to the industry? Every industry has its own distinctive features. If an organizer is
9. Input versus output ratio If you have review all the factors listed above, the last one to check is the input/output ratio. Add all the costs together, the booth, the travel and related promotions, see if the investment is worthwhile. Selecting a great show will get you half way towards success. An exhibitor needs to respond to the market quickly and learn the trends. Knowledge of business practices wins customers. Professional buyers need to make full use of the global resource and purchase the most competitive products directly. This means life or death for the survival of a business. Therefore, choosing an effective trade show is vital for your business and development. www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Profiles
Diamond Brasil: A company to look at Brazilian remanufacturing industry Interviewed by Flavio Oliveira Diamond Brasil is one of the Brazilian big players in consumables’ distribution for inkjet and laser cartridges remanufacturing. The company has been founded in 2002 by a group of partners that worked for another company that was one of the pioneers of the industry. Back then, the aim of the partners was to create a company to provide full support on products and technological innovation for their clients to have the best products available on the market – similar or even better to OEMs. Diamond Brasil (DB) distributes several tons of OPCs, blades, toners, parts & pieces each year. In 2010, it started to trade inks for HP, Lexmark, Brother, Epson and Canon cartridges. The inks are sold in gallons or in fractioned bottles. For toners, Diamond has a filling room with machinery that fills automatically with precision scales and safety devices. Their filling systems has the advantage of avoiding toners’ contamination with other types from Diamond’s vast range of toner powders and also prevents health harms to its employees. Diamond does not remanufacture any kind of cartridges itself, it is focused on distributing consumables for remanufacturers and retailers in Brazil. Approximately thirty people currently works for Diamond, in a direct or indirect way. Diamond Brasil is an environmental-responsible enterprise that works under ISO 9001 standards and offer high quality
▲ Diamond Brasil technical presentation
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▲ Diamond Brasil presentation
products imported from many parts of the world. The company is well structured and has two different departments for sales and marketing, due to the importance given by the company to managing its image and distributing its products in a very organized routine. Diamond’s vending is done through its sales unit which reaches from remanufacturers to consumables retailers all around the country. For some specific regions of Brazil, a selected group of distributors is in charge for the trade in the respective zone. Diamond has a strong image among the Brazilian industry and it is probably due to the existence of a specific department for marketing, from where all communication actions are coordinated with synergy and efficiency. The communication planning uses several types of interaction channels, such as: blogs, email marketing, specialized publications, promotional and point of purchase actions. Continued investments are made on marketing and communication, which accompanied by other actions, includes fidelity campaigns. Those campaigns help presenting Diamond’s slogan “Soluções para consumidores exigentes (solutions for demanding clients)”. This motto only reinforces the commitment to quality and to the market development the company has. The website www.diamondbrasil.com is constantly updated with online products catalog, industry news and technical articles.
Recycling Times Magazine
Profiles
products, by investing in distribution and sales logistics, by respecting the market’s ethics, by selling products that follow all fiscal obligations. DB works directly with some of the best manufacturers in the world and keeps searching for new range of products to enlarge its mix of products. This allows a more precise communication, adopting security criterions under the manufacturers’ standards and, concomitantly, providing more credibility to its clients. DB invests continually on infrastructure to better attend its clients. ▲ Diamond Brasil booth
Diamond has been expanding its activities and plans to enlarge its sales with the higher stock chance at its new facilities. Some isolated exportation has been made but with a larger storage capability, the company will be able to attend clients in other Latin American countries. At the moment, the core markets of Diamond are the South and Southeast regions of Brazil but other regions are being attended through its registered representatives around the country. What is Diamond doing different from its competitors? Diamond Brasil (DB) is concerced in sharing transparency with its clients by informing the manufacturers of the supplied
Most significant achievements “The holistic growth of Diamond Brasil was the biggest triumph ever – enlargement of products offer by the entrance of new products’ lines and also due to the physical and logistical structure”, affirms Mr. Eduardo Varela, Commercial Director of Diamond Brasil. Word of advice Invest a lot in getting to know your clients, improve your relationship with them and serve security and quality. Besides investing in physical and logistical infrastructures, it is also essential to devote time and money to your staff which are the bedrock of any company wishing to grow.
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Profiles
Following is the writer's interview with Mr. Eduardo Varela, Diamond Brasil’s Commercial Director. • When and why Diamond has started distributing cartridges’ remanufacturing consumables? After a period of actuation on the Brazilian re industry, in one of the first companies of the sector, we decided to found Diamond Brasil in the year 2002. The main purpose was of providing support in products and technological innovation so our clients could have the best product, comparable or even superior to OEM’s. • Which was your first distribution contract? The first distribution contract was signed with Alphachem, an OPC manufacturer from Korea. This partnership guaranteed us exclusivity on their products. This relationship has been so positive it is still active today and has been growing due to excellent results achieved on both sides. • Which was your highest professional achievement so far? The biggest professional accomplishment was putting Diamond Brasil – with all team’s effort – in the big players national scenario. • In your view, what would be the most positive aspect of cartridges’ remanufacturing? To be an environmental-friendly industry that re uses material with elevated pollutant potential.
▲ Diamond Brasil booth
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▲ Eduardo Varela, Diamond Brasil’s Commercial Director
• Do you expect changes to be seen in the industry’s scenery in the next years? Yes, hopefully many public organizations will hire companies with some kind of quality certification, assuring quality to remanufactured cartridges. Another change will be the new models of printers using new emergent technologies that will push the market to specialize itself. • What was the most unfavourable moment for Diamond? A few years ago, there was a strike from Receita Federal – similar to USA’s IRS, it is the institution in charge for collecting taxes and tributes from every commercial activity, International Trade included, of course. Then, many goods were stuck and have not been registered, what delayed a lot the customs’ clearance of many of the cargos we were importing. This importation issue made with some highly demanded products went out of stock. Happily, we had a considerable quantity of products in stock and we managed to continue operating until the situation was normalized. • What do you think require more attention regarding the Brazilian aftermarket? The lack of politics to stimulate the use of remanufactured cartridges and to include it in the buying lists of public institutions – for the moment, certain regulations does not allow public institutions to buy used products, and remanufactured cartridges are seen under Brazilian legislation as such.
Recycling Times Magazine
Profiles
• What are the main problems faced in your region? Informality is something that does bother a lot. Another thing that is a serious problem is the absurd disparity between importation taxes applied to finished products and to pieces used to remanufacturing process – the latter, has much higher taxes applied to it. • In your belief, is there any law that could make things easier for the remanufacturing industry? One law that could make a big difference would be to oblige the consume of remanufactured cartridges in Governmental (public) institutions. • Is there any association in Brazil that provides support for the industry’s enterprises? Yes, there are some associations and syndicates in Brazil. ABRECI and AGRECI are the remanufacturers associations in Brazil. SINTERCISP and SERCISP are the first two re industry syndicates created in the country, with action in Sao Paulo state only. Finally, we have ReBrasil Institute which is dedicated to disseminate knowledge about the industry and to support for the industry’s development. We are associated to ABRECI, which is the national remanufacturers association. We give support to ABRECI, we participate in meetings where many themes are discussed to the market’s benefit and we also intend to back the newly created syndicates as well other associations. • What is the hope for the next few years? To expand our business and better attend our clients’ needs, to amplify the products’ mix and to enlarge our stock capability.
▲ Diamond Brasil at ReciclaMais
• In a few words, how would you describe the remanufacturing industry in Brazil? The Brazilian cartridges’ remanufacturing industry is still in formation and demands three key things: qualified professionals, Government’s policies to stimulate the industry and laws to regulate it. Some steps ahead have been made towards development, for instance, the awareness about correct destination of residues (waste) produced when remanufacturing printer cartridges. • Your Personal realization? Have a established a family from which I am very proud of. • One memorable funny moment experienced on the job? In one of my trips to Asia, once I took a taxi with a driver who could not speak a word in English. When I was inside the car and asked how much it would cost me to get where I wanted, the taxi driver had to call someone else to act as interpreter and solve the language barrier. • What was your brightest idea? The brainy idea ever was to accept the challenge and together with my partner open Diamond Brasil, a company professionally guided to enter the consumables market.
Flavio Oliveira Flavio Oliveira is Brazilian, double graduated in Communication, with emphasis in Publicity & Propaganda and in Public Relations. He has travelled, studied and worked in some different European countries like France and the UK, he speaks Portuguese, English and French. From Brazil he corresponds to international publications and gives communication consultancy for companies around the world which needs assistance with the Brazilian market. To contact him email rejunger@hotmail.com.. www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Legal Issues
On the protection scope of design patent right By Helen Duan, INNOPAT Intellectual Property As the printer supplies aftermarket has developed, many companies in China have filed a number of design patents. However, there has always been doubt about the protection scope of design patent rights, especially for complex products, such as a separate cartridge which includes the cartridge main body and holders. When a separate cartridge is being used, several parts are used together. Let’s say a design patent has several parts in its description. When a separate cartridge is in a patent infringement, should several parts be considered as a whole or separately? In this article, Lawyers Helen Duan and Jack Xu from Zhuhai Innopat Intellectual Property Co., Ltd. explain the protection scope of design patents. Recently, the Higher People’s Court of Beijing released a report on the latest developments in intellectual property rights. In it there is a case about the protection of design patents. As stipulated in the Patent Law, a design patent means any new design of the shape, the pattern or their combination, or the combination of the color with shape or pattern, of a product, which creates an aesthetic appeal and is fit for industrial application. According to Article 23 of Patent Law, “Any design for which patent rights may be granted must not be identical or similar to any design which, before the date of filing, has been publicly disclosed in publications in the country or abroad or has been publicly used in the country, and must not be in conflict with any prior right of any other person.” Therefore, every design patent should be unique and most of them should be considered as valid. However, if the design patent contains several parts, there will be occasions where a design patent is announced to be invalid. We now turn to a case between Zhongshan Telip Electronical Co., Ltd (Telip) and the defendant the Patent Reexamination Board. In the original case, the patent involved a design patent for the all-in-one Juicer (Chinese patent No. 98333604.0). This patent includes four parts: the main body and four separate components. The four components cannot function independently of the main body. And the main body of the juicer cannot work alone either. Components 1 and 2 combine to work together as a whole with the main body, while Components 3 and 4 both work independently
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alongside the main body. These three combinations form three products with different functions and the three products were sold together. In the first instance, the Patent Reexamination Board announced the design patent of Guangzhou Santronic Co., Ltd (Santronic) as part invalid, that is, the patent right of the combination of the main body, Component 1 and Component 2 was invalid, but the combination between the main body with Component 3 and the main body with Component 4 was valid.
Recycling Times Magazine
Legal Issues
Telip held that the Santronic patent didn’t fit the description of Article 23 of Patent Law. Therefore, Telip hoped that the court announced that the Santronic patent would be totally invalid. Telip was not satisfied with the ruling and instituted legal proceedings in the people’s court, appealed to a court of second instance, the Patent Reexamination Board the defendants. Santronic was invited by the Patent Reexamination Board as a third party in the case The Patent Reexamination Board believed that the product was a complex product. The exterior of the two products formed by Component 1 and Component 2 combining with main body were similar to those in publication documents. However, the exterior of the two products formed by Component 3 and Component 4 combining with main body were different to those in publication documents. The Patent Reexamination Board announced the patent “part invalid”. The court of first instance sustained the ruling by the Patent Reexamination Board. The Higher People’s Court of Beijing explained that a complex product is formed by two or more separate products. Each of the products forming a new product has its own characteristics and value in use. When combined, the new product has new features and shows the value of combining them together. The Patent Reexamination Board agreed with the fact that the main body and the four components in case could not be used alone. On the other hand, the Board ruled that four components and the main body is a set which constitutes a complex product. We don’t think this is appropriate. However, there is one thing special about the patent in question. Although four components and the main body cannot function alone, but the main body can be used with Component 1 and 2, or Component 3 or Component 4. And the three products (combining main body and components) are sold together as one set of product. The patented
product(s) should be the three new products combined by the main body and components rather that the main body and each separate component as shown in the drawings of the patent. In this case, we think the protection scope of the patent in case should cover the three products formed by the main body and separate components. That is, the patent should cover the following three products: • The main body, Component 1 and 2; • The main body and Component 3; • The main body and Component 4. The court of second instance held that the first product had similar design to publication documents provided by Telip. The other two products were totally different from publication document. The combination of the main body, Component 1 and 2 is not covered by the patent. The ruling of the first instance sustained. This can be applied to printer supplies patent applications. When a company applies for a design patent, drawings and photos should be submitted including great detail in order to avoid invalidation. For example, if a toner cartridge takes a similar shape to old toner cartridges and only the holder is improved. How do we apply for a patent for this improvement? If you combine the holder with the cartridge, the whole cartridge looks similar. But as a separate component, the holder looks rather different from other holders. How do we apply patent for the holder? We need to judge from different situations and cope with specific details. There is one principle to obey, though. That is, if the major creativeness is the product as a whole, you should apply for patent of complex product. If you only improve or change part of a product, such as a component, you should explain that point in application files.
Helen Duan Helen Duan is a patent attorney and general manager of INNOPAT Intellectual Property Co., Ltd, which is an officially authorised foreign patent agency in China. In 2005, she was honored as one of the “Excellent IP agent of Guangdong Province.” Ms. Duan has been working as a senior IP advisor for several famous companies and associations including China Yangzi Group Company, ZTE Corporation and Print-Rite Group. Having followed up and studied OEM patents for about 10 years, Ms. Duan has rendered numerous strategic, patentability and non-infringement opinions for successfully designing around OEM’s patents worldwide. With more than 15 years IP practice, Ms. Duan is well experienced in international IP laws and regulations, esp. for the US, Europe and Japan. www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Tech Zone
Remanufacturing the HP LaserJet P1102 Series toner cartridge CE285A By Mike Josiah and the technical staff at Uninet Imaging In May 2010, Hewlett Packard released the LaserJet P1102 printer. The HP-P1102 series of laser printers are based on a 19 ppm, 400 x 600dpi Canon engine. These cartridges use a chip that controls the toner low functions. The CE285A is rated for 1,600 pages. The printer itself has a very small foot print. It’s a nice small office/home machine. The memory is fixed and not expandable at 8Mb. The recommended monthly volume is from 250-1500 pages/month. These machines also have a new feature called “Smart install” the printer driver is built into the printer so no drivers need to be installed. Just plug in the USB or Ethernet cable and you can start printing! The printer when new comes with a starter cartridge that is rated for 700 pages at 5% coverage, so your customers will be coming to you fairly quickly! The starter cartridges and replacement CE285A (1600 page) cartridges are physically the same so you can make a standard cartridge from the starter. So far there are four printers based on this engine. The P1102,the P1102W, the M1130 and the M1212NF. The new cartridge is a modified version of the older P1505 cartridges. In fact many parts for those cartridges work in these also. Cartridge troubleshooting as well as running test pages, cleaning pages and some simple printer troubleshooting will be covered at the end of this article. The theory for these cartridges is a little different from past versions so we have covered it here. You don’t have to know the theory to remanufacture cartridges, but it sure helps if you have a problem. Troubleshooting time can be dramatically reduced.
Cartridge Theory
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HP LaserJet P1102 Series toner cartridge printing process
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A
Figure A gives a nice block diagram of the printing process. The image formation process consists of a series of steps.
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Recycling Times Magazine
Tech Zone
B
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In the first step, the Primary Charge roller (PCR) places a uniform negative DC Bias voltage on the OPC drum surface. The amount of the negative DC Bias placed on the drum is controlled by the printer’s intensity setting. This process is part of the latent Image formation block.
Primary charging roller
DC bias Photosensitive drum
Photosensitive drum
BD sensor Laser unit
Scanning mirror
SCANNER MOTOR CONTROL signal
LASER CONTROL signal
VIDEO signal
BDI signal
Scanner motor unit
Laser beam
DC controller Engine controller
Unexposed area
Exposed area
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Formatter
the second step, the laser beam is fired onto a rotating mirror (called the scanner). As the mirror rotates, the beam reflects into a set of C & D Infocusing lens. The beam then strikes the OPC’s surface, which neutralizes the negative charge on the drum and leaves a latent electrostatic
image on the drum. The laser unit actually fires 2 beams. The service manual does not mention the second laser beam at all, but at this point we are not sure if the second laser actually helps erase any residual charges on the drum or helps speed up the printing process. We are leaning towards the second laser helping to erase any residual images as other recent Canon based engines also use the dual laser for this.
The third step (developing block) is where the toner image is developed on the drum by the developing section, (or supply chamber), which contains the toner particles. The toner is held to the magnetic roller sleeve by the stationary magnet inside the sleeve, and a DC bias voltage supplied by the high voltage power supply. This DC bias voltage is controlled by the printer’s density setting, and causes either more or less toner to be attracted to the drum. This in turn will either increase or decrease the print density. Both the Primary Charge roller and magnetic roller DC Bias voltages are controlled by the printer’s density setting. The amount of toner on the magnetic roller sleeve is also controlled by the rubber Doctor blade, which uses pressure to keep the amount of toner on the magnetic roller sleeve constant. This blade also causes a static charge to build up on the toner, which helps keep the coating of toner even, and allows easy transfer to the OPC drum. www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Tech Zone
Blade
Developing cylinder
Unexposed area
Exposed area
AC bias
Exposed area
Unexposed area
DC bias Photosensitive drum
E
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At the same time an AC signal is also placed on the magnetic roller sleeve. This signal decreases the attraction of the toner to the Magnetic Roller sleeve, and increases the repelling action of toner against the areas of the drum that was not exposed to the laser beam. This AC potential improves the density, and contrast of the toner on the printed page. As the laser exposed areas of the OPC drum approach the magnetic roller, the toner particles are attracted to the drums surface due to the opposite voltage potentials of the toner, and laser exposed surface of the OPC drum.
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In the fourth step (transfer block) the toner image is then transferred to the paper as it passes below the drum by the transfer charge roller, which places a positive charge on the back of the paper. This positive charge causes the negatively charged toner on the drum’s surface to be attracted to the page. The small diameter of the drum, combined with the stiffness of the paper causes the paper to peel away from the drum.
Photosensitive drum
Media
Static charge eliminator
Fuser film Toner
Media Pressure roller
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In the fifth step (also part of the transfer block) the paper separates from the drum. The static charge eliminator weakens the attractive forces between the negatively charged drum surface, and the positively charged paper. This prevents toner dropouts onto the paper at low temperatures and humidity and also prevents paper from wrapping around the drum.
G
In the Sixth step the image is then fused on to the paper by the fuser assembly, which is comprised of the upper fixing film assembly and the lower fuser roller. The paper passes between a heated upper fixing film assembly and a soft lower rubber roller. The upper heated element then melts the toner into the paper. The fixing film assembly consists of a Teflon sleeve with a ceramic heating element inside. These fusers are a bit different in that they have a Brush which has a DC Bias charge on it to help keep the film clean.
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Transfer roller
Fuser heater
F
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Tech Zone
H
In the Seventh step the OPC drum is cleaned. On average, approximately 95% of the toner is transferred to the paper during the print cycle. As the drum rotates during printing, the remaining 5% of the toner that is on the OPC drum is cleaned off the drum by the wiper blade. It is then guided into the waste chamber by the recovery blade, and stored in the waste chamber.
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Cleaning blade
Waste toner container
Photosensitive drum
Step 8 is where the residual charge is eliminated. Both the PCR and the laser unit are used for this. The Primary Charge Roller places an AC voltage across the drum surface and the laser unit’s second beam erases and residual charges left on the drum. This drum charge elimination is only turned on during the last rotation period of the drum.
Figures I-P show the differences from another newly released cartridge for the HP P1606 series of printers, the CE 278A cartridge. Neither of these two cartridges are compatible with the P1006(CB435A) or P1505(CB436A) cartridges. They are all physically different.
▲ CE278A Left
▲ CE278A Top
▲ CE278A Bottom
▲ CE285A Top
▲ CE285A Bottom
▲ CE285A Left
▲ CE278A Right
▲ CE285A Right
Supplies required • HP-P1102 toner
• New Drum
• Replacement chip (Dedicated
• Wiper Blade
• Dr. Blade
• Magnetic roller
• Sealing Strip
• Cotton Swabs
• Isopropyl Alcohol
• Drum Padding Powder
• Conductive Grease
• Phillips head screw driver
• Small Common screw driver
Tools Required • Needle nose pliers
• Jewelers Screwdriver set
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
step >
With the handle facing you, Remove the Right side screw and end cap from the cartridge. Be careful of the drum cover spring! Remove it with the end cap.
7
Clean out all the waste toner from the hopper. Be careful not to damage the recovery blade located next to the wiper blade. If this blade is bent in any way, the cartridge will leak. Make sure the wiper blade foam seals are clean.
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On the waste/drum section, lift the drum up from the gear side. Twist and remove from the hopper.
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1
3
Slide the waste/drum section over to the left side. Separate the two halves.
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Tech Zone
8
5
Remove the PCR and clean with your standard PCR cleaner.
With the pair of needle nose pliers, release both the hopper tension springs. August 2010 | www.recyclingtimes.com.cn
step >
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2
6
Remove the two screws and the wiper blade.
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Install the cleaned PCR. Place a small amount of conductive grease on to the black holder side of the shaft. Just a small amount of grease is more than sufficient.
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Coat the new/cleaned wiper blade with your preferred lubricant. Install the wiper blade and 2 screws.
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Tech Zone
17
Remove the doctor blade and two screws.
10
Install the new/cleaned drum hub side first. Place the waste/drum section aside.
On the toner supply chamber right side, Remove the two screws and end cap.
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13
Remove the gears from the hopper as shown.
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19
Fill the hopper with P1606 toner.
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When a seal becomes available, remove the seal port plug, and install the seal.
Clean out all the remaining toner from the hopper. Make sure the magnetic roller seals and the doctor blade seals are all clean.
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16
Remove the single screw and end from the opposite side.
Remove the magnetic roller assembly. Be careful of the bushings! They are very fragile.
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12
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Leave the large auger gear in place.
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11
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Place another small amount of conductive grease on to the metal drum axle.
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Recycling Times Magazine
Install the doctor blade and two screws.
Bring the tail out through the seal port hole. Install the plug.
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23
27
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Tech Zone
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Place the drum/waste hopper into the toner hopper. Slide it over so the round hinge pins fit into their respective holes.
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Install the gears as shown.
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Install the end cap and screws.
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Set the hopper tension springs back in place.
With the drum cover spring as shown on the end cap, install the end cap. Lift up the tail of the spring to fit onto the hopper.
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Install the left side end cap and screw. Make sure the small contact piece is installed correctly on the end cap.
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Install the magnetic roller black bushing side first. Turn the roller until the keyed end locks in place.
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Lift up the drum cover sprint tail to fit as shown on the drum cover.
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Install the screw into the cover.
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Tech Zone
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Replace the chip.
Repetitive Defect chart OPC Drum
75mm
Upper Fuser Film
57mm
Lower Pressure roller
56mm
Transfer roller
39mm
Magnetic roller
34mm
PCR
29mm
Running Test Pages Test pages must be run from the P1102 menu. Access the Printer Preferences menu, then Services, and Information pages. There are three test pages that can be selected. The Demo, Config, and Supply Status Page.
Running the Cleaning Page The cleaning page for these machines can only be run from the Printer menu. HP recommends that for best results, a transparency be used. If a transparency is not available, user copier grade paper with a smooth surface. To run this page, Access the printer preferences. Click on Device Settings. In the cleaning Page area, press Start. The cleaning cycle takes up to 2 full minutes. The page will start and stop. Do not turn the printer off until the cleaning page has finished printing. Mike Josiah Mike Josiah is the East Coast Technical Director at Uninet Imaging. A global distributor of toner, OPC drums, wiper blades and other supplies. An industry veteran since 1987, Mike is a member of ASTM committee F.05, the STMC Technician Certification Committee as well as an STMC trainer. He regularly contributes articles and teaches seminars at association meetings and trade shows.
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Market Data
Monochrome laser printers (part 1) Speed below 20 ppm Vendor
HP
HP
HP
Model Name
P1008
M1319
M1136
Engine Manufacturer
Canon
Canon
Canon
Host-based, GDI
240MHz
400MHz
Standard memory
8MB
32MB
8MB
Maximum memory
Non-updatable
Non-updatable
Non-updatable
16 pages
18 pages
18 pages
600×600dpi
1200×1200dpi
600×600dpi
Standard
1×150 sheet multipurpose tray
1×150 sheet multipurpose tray 10 sheet manual feed tray
1×150 sheet multipurpose tray
Optional
10 sheet manual feed tray
30 sheet automatic feed tray
NO
NO
NO
NO
Black CC388A 1500 pages
Black Q2612A 2000 pages
Black CC388A 1500 pages
High-yield cartridge Part No. Estimated life
NA
NA
NA
Other consumables Part No. Estimated life
NA
NA
NA
Personal, home and SMEs
Personal, home and SMEs
Personal, home and SMEs
1299.00
2399.00
1699.00
New comes with a starter cartridge that with a lower yield than standard, brandnew chemical toner formula
With print/copy/scan/fax functions, can send and receive digital documents
With print/copy/scan functions, support diskfree drive, Auto-on/Auto-off technology
Processor
Speed Resolution (Max.)
Network support Standard yield cartridge Part No. Estimated life
Market sector
Retail price (CNY)
Comments
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August 2010 | www.recyclingtimes.com.cn
Recycling Times Magazine
Market Data
Canon
Canon
Samsung
Samsung
LBP3000
LBP3018
SCX-4321
SF-565PR
Canon
Canon
Samsung
Samsung
Host-based, GDI
Host-based, GDI
Host-based, GDI
Host-based, GDI
2MB
2MB
16MB
8MB
Non-updatable
Non-updatable
Non-updatable
Non-updatable
14 pages
14 pages
20 pages
16 pages
2400×600dpi
2400×600dpi
600×600dpi
600×600dpi
1×150 sheet multipurpose tray
1×150 sheet multipurpose tray
1×150 sheet multipurpose tray
1×250 sheet multipurpose tray
1 sheet manual feed tray
1 sheet manual feed tray
1 sheet manual feed tray
20 sheet automatic feed tray 1 sheet manual feed tray
NO
NO
NO
NO
Black Cartridge 303 2000 pages
Black CRG 912 cartridge 1500 pages
Black SCX-4521D3 3000 pages
Black SF-D560RA 3000 pages
NA
NA
NA
NA
NA
NA
NA
NA
Personal, home and SMEs
Personal, home
Personal, home and SMEs
SOHO, home and SMEs
1680.00
999.00
2860.00
2480.00
Can finish printing using computer screen
Paper tray can be folded, protecting paper, improved printing quality
With print/copy/scan/fax functions, semi-hidden design of paper tray, avoiding paper fall-offs
With print/copy/scan/fax functions, have toner-saving mood, save up to 40% toner
www.recyclingtimes.com.cn | August 2010
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Recycling Times Magazine
Market Data
Monochrome laser printers (part 1) Speed below 20 ppm Vendor
Lenovo
Xerox
Brother
Model Name
M7250
DocuPrint 203A
HL2070N
Engine Manufacturer
Brother
Xerox
Brother
Host-based, GDI
96 MHz
133MHz
Standard memory
16Mb
8 MB
16MB
Maximum memory
Non-updatable
Non-updatable
Non-updatable
20 pages
20 pages
20 pages
2400×600dpi
2400×600dpi
2400×600dpi
Standard
1×250 sheet multipurpose tray
1×250 sheet multipurpose tray
1×250 sheet multipurpose tray
Optional
35 sheet automatic feed tray 1 sheet manual feed tray
1 sheet manual feed tray
2 sheet manual feed tray
NO
NO
Standard
Standard yield cartridge Part No. Estimated life
Black LT2922 1500 pages
Black CWAA0649 2500 pages
Black TN-2050 2500 pages
High-yield cartridge Part No. Estimated life
Black LT2922H 2600 pages
Black CWAA0648 12000 pages
Cartridge DR-2050 12000 pages
Other consumables Part No. Estimated life
Cartridge LD2922 12000 pages
NA
NA
Personal, home and SMEs
Personal, home and SMEs
home, working groups and SMEs
3999.00
1999.00
1999.00
With print/copy/scan/fax functions, can copy bills with high resolution, enjoy unique duplex printing technology, can print ID card with single one press on the button
have toner-saving mood and quick printing setting, sleep timer, status monitor, density setting and error reminder help control printing process
Distinctive web printing and duplex printing function, fit for SMBs
Processor
Speed Resolution (Max.)
Network support
Market sector
Retail price (CNY)
Comments
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August 2010 | www.recyclingtimes.com.cn
Recycler Publishing & Events (Zhuhai) Ltd
● May 2010, Canon took legal action against 5 Korean OPC drum manufacturers; ● June 2010, Canon filed a complaint with the US ITC against Ninestar and 19 other companies, claiming that 2 of its patents in laser cartridges were infringed. ● How will the legal actions against the aftermarket affect our industry? ● What will be the trends and directions in the copier and printer consumables aftermarket? ● How can we build a stronger industry for sustainable development? ● How can we promote the eco-friendly remanufactured products and the remanufacturing philosophy to the public? On September 25, 2010, experts from the industry and trade associations around the world, including representatives from America, Australia, Britain, China, India and Russia will discuss the hottest issues in the industry. Art Diamond, a 55-year veteran of the imaging industry and Arnald Ho, chairman of the Consumables Committee of the China Computer Industrial Association will co-chair the General Assembly. 15 media companies from around the world that represent the industry are supporting this charter event. Come and meet this esteemed group of world leaders in the industry. Let’s discuss the issues and find the solutions together.
Welcome to 2010 Global Remanufacturing Industry General Assembly (GRIGA)! For more information, please visit www.visitremax.com.cn
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