Sixth Circuit Rules in Favor of Static Control Components ... Again

Feb 21, 2005, 00:00 ET from Static Control Components

    SANFORD, N.C., Feb. 21 /PRNewswire/ -- The United States Court of Appeals,
 Sixth Circuit, responding to a request by Lexmark International, Inc. for a
 re-hearing, ruled against the Lexington-based company in a decision announced
     (Logo: )
     In late October, the Sixth Circuit vacated an order by Judge Karl
 Forester, who granted a preliminary injunction in February of 2003 banning the
 sale of Smartek replacement chips by Static Control Components for the Lexmark
     Immediately following the ruling, Lexmark filed a motion for re-hearing.
 The Sixth Circuit denied that request on February 15th.
     "This is a very gratifying decision," said SCC CEO Ed Swartz, on the
 latest setback for Lexmark.  "We feel that the public interest has been served
 by a knowledgeable court to not allow a greedy OEM to use the law to
 perpetuate an electronic monopoly.  Consumers and justice have been served."
     On December 30, 2002, Lexmark filed a lawsuit against SCC. In the suit
 Lexmark claimed that SCC's Smartek 520/620 chips violated the Digital
 Millennium Copyright Act of 1998.
     "We have asserted from the outset that this is a blatant misuse of the
 DMCA. The Sixth Circuit's ruling and the court's decision not to hear
 Lexmark's request for another hearing solidifies and supports our position
 that the DMCA was not intended to create aftermarket electronic monopolies,"
 said Swartz, who pointed out that such monopolies could cost consumers
 billions of dollars each year.
     According to SCC General Counsel William London, "The case is scheduled
 for trial in December of 2005 on what remains of Lexmark's claims, and on
 Static Control's claims against Lexmark for violating several state and
 federal antitrust and anticompetitive statutes."
     Static Control Components, which employs over 1,300 people in Sanford,
 North Carolina, accounts for over $300 million in annual sales. The primary
 market for Static Control Components is the laser toner cartridge
 remanufacturing market. Static Control supplies over 3,000 replacements parts
 to over 10,000 remanufacturers all over the world.
      Contact:  Charles Taylor
         Director of Media Relations
         919-774-3808 x 1584

SOURCE Static Control Components