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Recycling Times Magazine

RecyclingTimes The magazine by the industry, for the industry.

Publisher & Managing Director Tony Lee Directors David Gibbons Sabrina Lo Senior Consulting Editor Art Diamond Editorial Team Doris Huang Doris.Huang@iRecyclingTimes.com Sales Team Anna Liang anna.liang@iRecyclingTimes.com Marketing Team Jessica Yin jessica.yin@iRecyclingTimes.com Operations Team Charles Lee charles.lee@iRecyclingTimes.com Regional Offices 5F, Pacific Insurance Building, Jiuzhou Ave, Zhuhai 519000, China Tel: +86 (0)756 3220716 / 3919266 Fax: +86 (0)756 3220717 24 Ardley Ave Kellyville, NSW, Australia 530 West Ojai Ave., Suite 108 Ojai, CA 93023-2471, USA Email: info@iRecyclingTimes.com Website: www.iRecyclingTimes.com Published by Recycling Times Media Corporation Akara Bldg, 24 De Castro Street, Wickhams Cay 1 Road Town, Tortola, British Virgin Islands

Front cover photo of Bobo Wang: David Gibbons.

Tony Lee

editorial

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I miss those days when industry leaders and professionals gathered together to discuss hot issues concerning our industry and exploring business opportunities. Conference@2012 brought 192 delegates in the printing industry, from 15 countries, to jointly discuss the possibilities of next-stage developments. The new wave, new generation, high quality and low cost LED printer is said to become the winner over traditional laser and inkjet print technologies for the next 50 years. Digital printing, though a small fraction of total printing, is rapidly growing. Managed Print Services (MPS) becomes a more and more popular solution for end users under the current harsh economic environment. What’s worth mentioning is that, remanufactured consumables are growing at a twodigit rate annually in China, demonstrating increasing popularity and recognition among consumers. Also for the first time ever in China—a historic moment—OEMs and the aftermarket sat under the one roof and shared views on issues that concern both parties. It suggests both are prepared to recognize each other and are willing to participate, educate and inform each other in a more civil manner. Let’s be aware that OEMs and aftermarket are in a symbiotic relationship: the existence of OEMs provides an opportunity for the aftermarket to remanufacture consumables and the sales of aftermarket product drives up that of hard copy. So I cherish such a moment, and am honored it was Recycling Times that enabled such a historic moment to happen. Straight after the conference, came the 6th CIFEX|RemaxAsia Expo and the 1st iPrint Expo at Zhuhai Air Show Center. The event attracted almost 10,000 visitors from 85 countries around the globe to tour 425 exhibits. It’s encouraging to hear many visitors appraising the size of the scale—the largest ever trade show for the print consumables industry. Some outstanding highlights made the show glow: the never-seen-before creative booth designs, innovative products, thought provoking seminars, “patent safe” discussions, factory tours, print services and product diversification, etc. In conclusion, I’d like to thank all exhibitors and visitors for your investment of resources and time to participate. I look forward to seeing you again in October next year!

Tony Lee Publisher & Managing Director

Columnists

RecyclingTimes

David Gibbons

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Art Diamond

Steve Weedon

October 2012

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All rights reserved. © 2012 by Recycling Times Media Corporation. The contents are not be to copied or republished without official written consent. The editorial content does not represent official positions of Recycling Times Media Corporation.


Recycling Times Magazine

contents www.iRecyclingTimes.com

Recycling Times Makes History as OEMS, Rechargers Meet at Conference@2012

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Just a Minute

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Recycling Times Media made history when it brought together representatives of the cartridge remanufacturing industry with delegates from Hewlett-Packard, Xerox and Lexmark to discuss issues of common interest.

Watching History Unfold

Cartridge Wars: The Attack of the Clones ETIRA has authored a white paper “Guide to Clones” about selling and distributing clone cartridges and many industrial leaders express their views on this guide.

Money From Home

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Mobile Printing is Here 29

Keeping Up

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MPS Impact on Supplies: Effects of MPS in the U.S. Supplies Market

Who’s the Boss?

MPS is gaining share of the U.S. office environment, and is expected to control 28% of office environment print volume by 2014.

Industry Updates

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Static Control Claims Appeal Victory over Lexmark

10 Parts Now Acquired by CounterPoint Capital Partners MSE Technology Gets New Cartridge Models to Market FAST!

11 Minister Ms. Liesbeth Spies Visits Van Klaveren, ccc OCP GmbH Completes Merger with EWEKO GmbH 12 Metrofuser Named One of “America’s Fastest Growing Private Companies”

Print-Rite Wins Hong Kong Technology Award Expects MPS Market in Asia Pacific to Explode 14 IDC InfoTrends Predicts Bright Future in Print Services

Features Times Makes History at Conference@2012 23 Recycling CIFEX|RemaxAsia Expo Continues to Break Records 25 Cartridge Wars: The Attack of the Clones 29 MPS Impact on Supplies: Effects of MPS in the U.S. Supplies 37 Market

15 Ninestar Integrates Printing Supplies Business Indian Ink Manufacturer Sees Big Opportunity at CIFEX 16 Leading Exhibitors Address Patent War Issues Toner Lectures Reveal Development Trends

Product Release SCC Rolls Out a Series of Products

18 MSE Releases Compatible Color Cartridges for HP Printers 19 ILG Releases Reman Cartridges Color Toners for HP Users Faroudja Releases Color Toners, Mag Roller Cleaning 20 Solution UniNet Offers Toner Cartridges for HP Color Printer Jadi Imaging Offers Color Toner for Toshiba Multifunction Machines

Profiles

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Bobo Wang Perfects LED Color Imaging

OEM News Lexmark to Exit Inkjet Business

46 Epson Claims Micro Piezo InkJet will Challenge Laser Talking about inkjet: Is it facing extinction?

47 Kodak to Sell Imaging Businesses

HP Strives to Save Inkjet Business

48 Ricoh India to Delist from BSE

Fuji Xerox to Build New Plant in Vietnam www.iRecyclingTimes.com

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Recycling Times Magazine

Just a Minute David Gibbons

Watching History Unfold It was the Chinese who invented ink, paper, block printing, moveable type, and screen printing. The opening ceremony at the Beijing Olympics reminded us China has been at the frontier of printing technology for thousands of years. But China has taken a back seat in modern history. China only produced its first laser printer last year—a technology which was originally invented by Xerox in 1969—the same

The first laser printer was developed in 1969 by Gary Starkweather, who worked for Xerox Corporation.

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year man first walked on the moon. So China has been mostly playing “catch up”. Until now. I took a plane to Nanjing—not far from Shanghai—in China, because I wanted to see something revolutionary with my own eyes. I hoped I would be witnessing history—the next printing invention, a new frontier. Bobo Wang, a man short in stature, but a giant in imaging terms, took the time to show me the next wave of printing technology: the LED printer. Bobo was a co-founder of Microtek International and a former Micro Processing expert with Xerox. He has worked tirelessly since 1996 on his dream to deliver the lightest, lowest cost colour printer for the world. It is small, has hardly any parts (because LED technology does not need the sophisticated moving beam and mirrors used by laser) and is amazing light.

LED printers developed by Aetas.

I copied a map of the Japanese subway in colour, then copied the copy. I did that 5 times. The 5th generation copy was amazingly clear. I could still read the fine print. To my eyes it looked no different than the original. The LED technology can send and print secure documents with hidden codes. What a win that will be for the legal industry. Although the courier companies may not like it so much. But will HP, Canon, Samsung, Brother and Lexmark show any interest? Will they protect their existing technologies, or will they see the market value of this amazing new invention?


Recycling Times Magazine

Money From Home Art Diamond

Mobile Printing is Here Mobile printing is here and gaining momentum in many facets of business, industry and education. Today’s workforce is on the go. Architects, attorneys, engineers, medical personnel, realtors, and many other workers, are armed today with their laptops, iPhones, iPads and tablets. To complement these valuable communication tools, they need the flexibility to access their documents through mobile printers, including those with color and MFP capabilities. What will increase their productivity is no longer the need for them to add hard copies to their luggage before embarking on a road trip or travelling abroad. A mobile printer offers simple and convenient printing that enables document generation, 24/7 at any location. In growing numbers, legal professionals

Ricoh Aficio SP C431DN-HS

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today rely on mobile technology to help stay connected while on the go. In fact, the American Bar Association’s 2011 Legal Technology Survey Report states that 88 percent of lawyers use a smartphone for law-related tasks while away from the office. Why slow them down with no way to print from a wireless laptop, smartphone or tablet? Among the mobile printer offerings is Hewlett-Packard’s Officejet 100 Printer. This device is capable of delivering prints at the rate of 22-ppm (black), and up to 18-ppm (color). It weighs in at just 5.5-lb (with battery) and is list priced at $279. This is truly a mobile printer. Xerox Mobile Solutions offers several alternative solutions designed to equip a mobile workforce. Among these is the EFI PrintMe Terminal which provides a cloud printing solution that allows anyone to print while away from the office from almost anywhere via any Internet-enabled device without any software, cables, or complex set-up. However, this is not a carry-on device. Ricoh’s Aficio SP C431DN-HS is a Color Hotspot Printer that also facilitates document printing from any location at any time. It enables printing emails or documents without access to the network by providing secure cloud access. Far from a hand-held device, this 42-ppm, 126-pound, dual-component toner,

HP Officejet 100 Printer

electrophotographic color printer is designed for location at strategic public venues, such as airports, hotels, convention centers, etc. A pioneer in mobile print technology, Ricoh anticipated the growth of cloud technology and created the Ricoh HotSpot Printing App to enhance the ease of locating a public printer from a mobile device. The app is a must have utility as most of the 5,000 plus public HotSpot locations are located globally in various environments. In a market report in December 2009 titled, Worldwide Mobile Worker Population 20092013, International Data Corporation (IDC) concluded: “Mobile workers will represent more than 1/3 of the global workforce by 2013, and in the U.S., 75.5% of workers will be mobile by 2013.” Isn’t it amazing how Bob Dylan knew that in 1964, when he wrote the song “The Times They Are A-Changin”?


Recycling Times Magazine

Keeping Up Steve Weedon

Who’s the Boss? Talk to any business owner trying to sell his range of remanufactured cartridges today, and he will tell you his number one problem is: competing with cheap, new, patent infringing compatibles cartridges. It’s ironic, when a remanufactured cartridge— that should only be competing with a new OEM original cartridge on price, quality and recyclingfor-reuse ideals, and has legitimate right to be in the marketplace—finds itself losing out to cheap, new, patent infringing cartridge replicas, which have no legal right to be selling in the market covered by OEM patents. Nowadays, the market is flooded with patent infringing new built cartridges. Clearly quality isn’t a problem. If quality was bad they would not have been so successful, no matter how low the selling price. But, who is buying the cheap but good quality, new built cartridges? Well it seems anyone is a candidate, including remanufacturers who can’t compete (some of whom stop remanufacturing altogether to focus on selling only compatibles) stationary dealers, wholesalers, and retailers, buying groups, web site companies and end users. I agree with the owner of a remanufacturing operation, that patent infringing new built cartridges are a massive problem. It’s a problem that only individual OEM’s can fix by taking

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action against patent infringers—including the cartridge maker, the distributor, reseller and end user. But, I also tell the owner who loses sleep at night worrying about it, he is not really in charge of his company’s destiny since the technical manager makes crucial decisions everyday based on his own perspectives and prejudices that effect the company ability to compete. For example, some technical managers insist on using Polymerized color toners in their cartridges at $80/kg and will not even look at alternatives at $40/kg and especially if it is not Japanese made. What remanufacturer struggling to compete against new built compatibles can afford to buy a 40-gram bottle of HP 1215 toner for say $3.50 (which equates to $87.50/kg)? What new- build built cartridge manufacturer uses Polymerized color toner? I am sure none do. Technical prejudices have always existed, and rightly so. Not all toners are the same; they can perform very differently when paired with different products, like OPC drums, PCR’s and doctor blades. The final analysis is always subjective. One person says it’s great and the other says it’s no good. So for the sake of those legitimate laser cartridge remanufacturing companies trying to make great quality but who can’t compete, I offer the following. Why not tell your technical manager that he should test alternative but cheaper products on the basis that there is sufficient savings to make a meaningful contribution to being more

competitive. How much could you save a month or year? That the product under test must produce print defect free results. If the product test produces a print defect that cannot be explained and eliminated, throw the product out and stop wasting time and money But if the product does produce a print defect free result consistently then it is either subjectively better than the current product or not as good as the current product. If it were the same as the current product then presumably it would be an easy call to make. If it is subjectively not as good as the current product then that call should be a commercial one and not purely a technical one. Since the decision may be to pay $87/Kg instead of $40/kg for the toner. Technical factors such as density, color match, background, fusing, page usage and sheen, should all be taken into account, but the commercial manager will know if he can sell it and if it is cheaper to produce. We have, over the last 20 years surrounded ourselves with standards to give remanufactured cartridges extra credibility. Blue Angel, Nordic Swan and LGA are just a few. Ask yourself: how many patent infringing new built compatible cartridges are meeting those standards? Does your customer really care and is he willing to pay a premium for it? The success of those compatible cartridges suggests that fewer customers are willing to pay more. Good product quality at lower prices is a hard combination to beat even if compatibles are potentially a legal risk. But some of the answers to the problem of being more competitive against them lies in misguided quality principles that work great when end users buy into it and pay more, becoming a “for life” customer, but what happens when they desert you and buy a new built low cost compatible. Don’t let the inmates run the asylum. It could be time to tell them who the boss really is.


Recycling Times Magazine

Industry Updates

Static Control Claims Appeal Victory over Lexmark Lexmark to stand trial for false advertising and unfair, deceptive trade practice claims Static Control has publicly responded to the August 29 ruling by the 6th Circuit Court of Appeals. In a press statement they say the Appeals Court of Appeals has again ruled in Static Control’s favor in the long running dispute with Lexmark. The Court of Appeals reinstated Static Control’s claims against Lexmark under the Lanham Act and North Carolina state antitrust laws. The Lanham Act claims are for false advertising arising out of Lexmark’s claims that the remanufacturing of Prebate program cartridges infringed Lexmark’s patents. The antitrust claims arose out of various Lexmark actions to reduce the number of cartridges remanufactured by third parties. The Court of Appeals also rejected Lexmark’s attempts to overturn the jury verdict in Static Control’s favor, and upheld the trial court’s finding that two of Lexmark’s design patents were invalid. “When we were sued in 2002, I stated that we were in the first round of a prize fight,” said Ed Swartz, Founder and CEO of Static Control. “We have won each round since, and we will win the fight at the end. The jury found for us because what Lexmark did to us

was wrong. The Court of Appeals found for us because they agreed.” This is the second time that the 6th Circuit Court of Appeals ruled in Static Control’s favor in the 10-year- old fight. In 2004, Static Control appealed a finding that its chips violated the Digital Millennium Copyright Act, commonly known as the DMCA. The trial court had found that Static Control’s sales of chips, which could communicate with Lexmark’s printers, violated the DMCA. The 6th Circuit reversed the trial court verdict and held that the DMCA could not be used to prevent the use of chips to communicate with printers.

The case now goes to a trial on Static Control’s claims against Lexmark. “We have waited a long time to present our case on why Lexmark’s actions are unfair and illegal,” said Swartz. “Lexmark had their turn at bat, and now it is our inning. We are confident the jury will agree with us and award us the damages we are entitled.”

MSE Technology Gets New Cartridge Models to Market FAST! MSE announced a robotic routing technology that enables rapid release and availability of new cartridge models. MSE is a global leader in innovative, technological solutions for the production of high-quality remanufactured toner cartridges. Its new routing technology employs a programmable machine, custom-built to enable precision cutting of cartridge cores, thereby converting older cartridges into the newer, more profitable models. MSE says it has either released or is about to release many models whose swift speed to market is a direct result of its proprietary routing technology. MSE President Yoel Wazana said: “We are continually re-investing in technology and capital equipment in an effort to provide a fastto-market response with a high-quality product. New products like this are great for our dealers because it allows for quick OEM conversion—an opportunity which is ultimately what we should all be focused on.” All customers who are interested in this or other technologies can visit MSE’s 225,000 sq. ft. Intelligent Re-Engineering facility in Van Nuys, California.

Parts Now Acquired by CounterPoint Capital Partners Parts Now, America’s leading manufacturer and distributor of printer components, has been acquired by the Los Angeles-based private equity firm CounterPoint Capital Partners. “Parts Now has been at the forefront of its industry since its inception,” said Matthias Heilmann, CounterPoint partner and new CEO of Parts Now. “We are very proud of the Company’s authorized distributor status with our critical partners and

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will be making several strategic and operating improvements to strengthen and expand these key partnerships.” Matt McLeish, Vice President of Sales & Marketing for Parts Now, added, “With CounterPoint’s financial commitment and operational support, Parts Now is well positioned for long-term growth and stability. Our day–to–day operations will

remain the same and so will our dedication to providing our large and diverse customer base with solutions that enable them to win in their marketplaces.” “This investment is a significant milestone for CounterPoint,” said Chris Iorillo, Managing Partner. “Our hands-on, front-line approach and operating expertise allowed us to quickly work through a variety of challenging issues and close this deal on the timeline we promised - less than 30 days from our selection as the buyer.”


Recycling Times Magazine

Industry Updates

Minister Ms. Liesbeth Spies Visits Van Klaveren, ccc Van Klaveren ccc won recognition and praise for its eco-friendly approaches and achievements in used cartridges and recycled phones from Minister Ms. Liesbeth Spies. On Thursday 30th August, Ms. Spies, Minister of Interior and Kingdom Relations, visited Deventer and to talk to citizens, managers and entrepreneurs to see how the investments in efficient use of energy going on at home and at work. And during the visit to Van Klaveren ccc BV, Minister Spies was warmly received by CEO Gerhard van Klaveren. Gerhard van Klaveren: “Our natural resources are running out. Also the use of natural gas and oil is bad for the environment. Consider the climate; it can be our downfall! Therefore we should invest in energy efficiency. Sustainability and environmental care are both for me as a

person but also for our company very important. If we think about the environment, everyone can live a longer and healthier live.� In the company of Van Klaveren, Minister Spies also had a tour around Van Klaveren ccc BV, a company busy with the collection of empty cartridges and used mobile phones for over 18 years. In 2011 Van Klaveren ccc, together with thousands companies and individuals, collected almost 3.3 million cartridges and mobile phones, which otherwise would have ended up on landfills. 91% of these collected cartridges and used mobile phones were ready for immediate reuse, so they were sold to remanufacturers and refurbish companies and got a second life. The other 9% was incinerated with recovery

of (sustainable) energy. With this energy 185 households were provided with energy. With this recycling program, the money generated through these empty cartridges or used mobile phones, can support some charitable organizations. At this moment Van Klaveren ccc works together with Stichting AAP (Monkey foundation), Hulphond Nederland, Cliniclowns (Red Nose foundation), Stichting Opkikker and many other charities.

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Recycling Times Magazine

Industry Updates

OCP GmbH Completes Merger with EWEKO GmbH Under terms of a merger contract dated August 14, 2012, EWEKO GmbH completed its merger into the OCP organization, retroactive to July 1, 2012. EWEKO GmbH markets ink, inkjet printers, and toner cartridges, while OCP GmbH produces desktop ink-jet inks, wide-format ink cartridges, and other specialties. Both companies are based in Hattingen, Germany. According to OCP GmbH, this merger has no effect on its customer, vendor or business partner, but the ones of EWEKO GmbH will face some changes. In a note to EWEKO customers, vendors and business partners, OCP wrote, “With immediate effectiveness you will no longer receive letters, order confirmations, orders and/or invoices from the old EWEKO GmbH,

but only from OCP GmbH. Please be so kind as to change the existing core data within your system from EWEKO to OCP. Possible new bank accounts will be mentioned and especially highlighted in the invoices.” Aside from these provisions, the merger will have no other effect and all former contact personnel will remain the same, OCP added.

Metrofuser Named One of “America’s Fastest Growing Private Companies” For the 5th year in a row, Metrofuser (Roselle, New Jersey) earned INC Magazine’s title of “One of America’s Fastest Growing Private Companies” for its consistently rapid revenue growth. “This is all the more remarkable given the recent state of the economy,” said William DeMuth, Chief Operating Officer. “Our people have worked hard to develop unique one-ofa-kind services and products and quality that goes beyond the industry standards.” “Between opening up a West Coast Distribution Center, expanding our footprint in New Jersey and adding remanufactured

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printers to our catalogue, we’ve had an incredibly busy four years,” said Eric Katz, Metrofuser’s Chief Financial Officer. “To be recognized by INC in all of those years and in an unfriendly economic climate is a source of pride for us and a testament to our commitment to always being ahead of the curve in product development and offering the highest quality remanufactured parts in our business.” About Metrofuser Metrofuser remanufactures and distributes laser printer parts, remanufactured printers and offers service training for HP, Lexmark and Canon brands. Multi-point distribution and same day shipping allows delivery of its products in 1-2 days via ground transport to 80% of the largest metropolitan areas.

Print-Rite Wins Hong Kong Technology Award Print-Rite Holdings Ltd. announced it is the recipient of the 2012 Hong Kong Technology Achievement Award for two of its groundbreaking toner cartridges. The company was singled out for two of its innovative products: the JUMPR+™ and the BIO-ECO™ toner cartridge. The Hong Kong Awards, launched in 2005, recognize the achievements of Hong Kong enterprises. The awards include 6 categories. Print-Rite's products received the award for "Technological Achievements", which highlights their technology and intellectual property aspects. The JUMPR+ Toner Cartridge is a new series of compatible laser toner cartridges based on Print-Rite’s patented technology. Printing performance of these cartridges have been tremendously improved. With the same toner load, total page yield has been increased which significantly lowers the cost per page. JUMPR+ provides superb print quality and almost no waste. It can be applied to various media and offers single color printing. The BIO-ECO Toner Cartridge is a revolutionary product. This cartridge represents a major step forward in terms of energy conservation and environmental protection. Bio-toners are made from bio-organic materials using a renewable resource, such as the inedible parts of plants. Bio-toners reduce dependency on foreign oil, stabilize the cost of toner raw materials and reduce CO2 emissions from the production process.


Recycling Times Magazine

Industry Updates

IDC Expects MPS Market in Asia Pacific to Explode International Data Corporation (IDC) of Framingham, MA predicts the Asia Pacific market, or APEJ (excluding Japan) for Managed Print Services (MPS) will break through the US $1.5 billion barrier within 5 years. According to IDC’s recent report, Asia/Pacific Managed Print Ser vices 2011–2016 Forecast and Analysis, the MPS market will explode, reaching revenues of US $1,595 million and a compound annual growth rate (CAGR) of 17% by 2016, considerably outpacing the Information and Communications Technology (ICT) market. According to the IDC report, unlike other sectors, the growth point will be in the Australia and New Zealand (ANZ) region rather than in the populous countries of China and India. “Traditional print business model must be supplanted with a services and software strategy, one that IDC sees providing better margins and tighter,

longer relationships with clients,” said Trevor Clarke, Research Manager, IDC Asia/ Pacific. “However, the MPS maturity of each country in terms of adoption will remain fragmented in the short term.” The lack of adoption maturity, in other words, end-user

indifference, is the major barrier for MPS growth in emerging economies, due to their focus on IT infrastructure and hardware, according to IDC. Low labor costs

also mean there is little incentive to outsource. “In contrast, large enterprises in many developed economies are already shifting focus to workspace strategies with the support of external partners that include MPS in order to boost employee productivity and remain competitive with their peers.” Clarke added. “Pioneering organizations are taking a holistic approach that factors MPS into the workspace strategy and ensures this is tied to any mobility, cloud or social business and collaboration agenda.” Note that the regions included in this report are: Greater China (China, Hong Kong and Taiwan), South Korea, Australia and New Zealand (ANZ), India, and SEA (Singapore, Thailand, Malaysia, the Philippines, Vietnam, and Indonesia).

InfoTrends Predicts Bright Future in Print Services Regardless of the weak economy, print service providers in North America are investing more on new technology and getting more payback in return. That’s the conclusion of InfoTrends’ Global & North American Print Production Workflow Market Forecast: 2011-2016. The study shows a 9.3% growth in software vendors’ revenues in 2011. The Weymouth, Massachusetts-based market research firm also projects a 7.8% CAGR until 2016 for the market. The way people print and communicate has changed dramatically over the years. Interactive, customized, multichannel communications create increasing demand for new technology. As a result, American print service providers are investing more in transformative technology even with a weak

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economy. “Despite the economic situation, we’re seeing good levels of interest in print production software solutions”, commented Kaspar Roos, Associate Director of InfoTrends’ Production Workflow & Customized Communications Solutions Services. “We expect the market to

show healthy growth in the years to come, driven primarily by services expansion and business model innovation, e.g., through Software-as-a-Service and Cloud Computing.” The report shows that revenues earned by software vendors’ grew 9.3% in 2011. With the decline in nearly every other segment of the print industry, InfoTrends predicts a 7.8% CAGR for the market until 2016. Infotrends’ analysts also see a clear shift from traditional print applications towards promotional and publishing purposes. “Overall print volumes are expected to increase by 2.9% until 2016,” said Ralf Schlozer, Director of InfoTrends’ On Demand Printing & Publishing Consulting Service. “Some applications are expected to outgrow that average rate quite noticeably. It will remain critical for industry suppliers and equipment users to adjust to the changes in the market.”


Recycling Times Magazine

Industry Updates

Ninestar Integrates Printing Supplies Business Sept. 5th, Ninestar Group officially announced its integration of printing supplies business after a 3 month’s trial. The new entity - Ninestar Image Tech Limited has been established to integrate the sale of printing supplies including toner, Inkjet cartridge and ribbon. The group believes that the integration will brings more efficient use of the existing resources, and serves the customers effectively. Previously, Ninestar Image Int’l Ltd. had

been in charge of the sale of inkjet cartridges while the sister company Seine Image Int’l Co., Ltd. has been in charge of the sale of toner cartridges. But now their names have all been changed. Ninestar Image Tech Limited is the new name and has been empowered with the duty as we mentioned above. While the name of Seine Image Int’l Co., Ltd. had been changed to Pantum International Limited and its new duty is the sale of Pantum printers after the integration,

which enables the group to provide One-Stop Solution of printing products. In addition, the group’s G&G brand has also broadened its business from inkjet cartridge to the full product line of printing supplies. Mr. Jackson Wang, CEO of Ninestar Group and GM of Pantum International Limited stated that” In the past, the individual printing supplies business grows rapidly, but now we need to unite and to be more powerful. We should make more effective use of manpower, technologies, marketing, logistics and service platform to bring more value to our customers.” Focused on High Quality, Technology and One-Stop Solution, Ninestar always believes innovation is the engine to drive the industry forward, and at the same time, maintains the competitiveness of the partners. The company is confident that the integration will turn out to a win-win strategy for customers, the company and the whole industry.

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Industry Updates

Leading Indian Ink Manufacturer Sees Big Opportunity at CIFEX Splash Jet, a leading Indian ink manufacturer who showcased new products at CIFEX|RemaxAsia Expo, claims there has been a 20% growth in the Indian market. It is not the first time Splash Jet has attended the Chinese show, but the Indian manufacturer said he continues to be amazed by the scale of the Zhuhai Expo. Splash Jet’s business manger Gaurav Jinturkar told Recycling Times the show was larger than they expected and said he will return next year. Specialized in producing inkjet inks, the company has mainly sold its products in India and Africa. However, with the good opportunities coming from the CIFEX|RemaxAsia Expo, Splash Jet is confident they can explore new markets in other regions around the world. Gaurav Jinturkar showed Recycling Times

their new replacement inkjet inks for HP, Epson, Canon and other OEM printers. Jinturkar says although the global economy remains weak, the Indian market has grown about 20% this year. Splash Jet is also producing other new products, and expects a 10% increase compared with the same time last year. While the market is promising for them, Splash Jet also concede competition is getting more intense. Price competition, which has been common for the industry, has dragged down the general quality of the products. Splash Jet is still very confident for the future. Jinturkar, impressed by the show, sees more business opportunities to be explored. "It is a very good show, a lot of visitors”, Gaurav says. “We will come back next year, with a bigger, better-designed booth"

Exhibitors Address Patent War Issues To better inform the industry, Recycling Times invited worldwide experts to give free lectures during the show. Presentations by patent attorney Ed OConner from The Eclipse Group in California, and Professor Karven Cao were well supported, Ed Conner said. The patent issue was also featured by exhibitors in their booths. Print-Rite, one of the leading aftermarket players in the print consumables industry, displayed big red slogans on its booth saying: “Let's talk about patents. Why me?” Ninestar also set aside a large portion of their booth display to deal with the the patent issue. The company shared its experience in the patent war and shared their analysis and experience on the hot issue. John Davis, a former CEO of a European print consumables manufacturer, was their guest speaker. Small and developing companies also find understanding the patent issue to be a vital

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part of the future of their businesses. Sharing Clor, a Chinese toner manufacturer, showed great confidence despite being established for less than two years. Its General Manager, Yi, says, "We are confident our toners can be popular in Europe, because we have no patent problems". The fact that patent lawsuits by the OEMs putting heavy pressure on the aftermarket was evident in the signage and business talk at the show. Remanufacturers, however, seem to be adjusting themselves well for any future rounds of competition. The market battle continues.

Toner Lectures Reveal Development Trends Hundreds of visitors to CIFEX|RemaxAsia Expo attended seminars and workshops with many packing the room to hear two separate speakers share their authoritative perspectives on the future of toner development. Velliyur R Sankaran of Sankaran Consulting updated his audience on the current development of toner manufacturing, toner resins, pigments, wax additives, charge control agents, and post blend additives. Sankaran concluded, “Core-shell technology will be revisited more, more charge control development work will continue, CPT will gain more ground (OEM/Independent), wax incorporation will be more innovative, bio toners may gain more ground, toner prices will go down (to compete with inkjet which is gaining market share), and the color market will grow in size.” Graham J Galliford from Galliford Consulting & Marketing also thought the future trend of toner development would transform from mechanical toner to chemical prepared toner, and from monochrome toner towards color toner. “The future of chemical toner production will be in Asia,” he said. “In 2010, there are 9 chemical toner manufacturers worldwide and 7 of them are located in Asia. In 2012, Asian manufacturers accounted for 13 out of 16 worldwide, while in 2015, the number will be 16 out of 19.” Both speakers agreed the toner market is relocating from Europe and North America to Asian countries like China and India.


Recycling Times Magazine

Product Release

SCC Rolls Out a Series of Products This month, Static Control Components, Inc. (SCC) launched a variety of new products for the cartridge remanufacturer: Smart Chip to Convert Cartridges SCC modified its replacement chip for Dell 5330 cartridges to convert Samsung ML-4551 and Xerox Phaser 3600 cartridges into Dell 5330 cartridges. An indentation cut in the chip board allows the chip to fit the housings for the Xerox and Samsung cartridges, creating more empties and greater flexibility for remanufacturers. New Developer Roller Sealing Blade to Prevent Toner Leaks SCC’s new developer roller sealing blade can prevent toner leaks in aftermarket cartridges for HP CP1518/CP1525/CP2025/M351/M451

and related Printers. Occasional toner leaks and print defects are headaches for color cartridge remanufacturers. Now SCC says that its new developer roller sealing blade is here to address the problems. The new blade features a thicker design that helps overcome a lack of rigidity of the hopper that allows toner to leak through a gap between the sealing blade and developer roller. The thicker blade design, according to SCC, has been tested for thousands of pages in multiple printers and has shown to eliminate print defects, such as a small puff or “spitting” of toner at the top of the first page of a print job. Waste Bins with Unique Designs Remanufacturers of cartridges used in the Samsung ML-1610/2010 family of printers can encounter two styles of OEM cartridges: one that features the end plate and waste bin attached with screws; and, the other having the waste bin attached with heat stakes. Each style requires a unique waste bin and remanufacturing method when converting the cartridge. SCC now offers replacement waste

bins as well as a replacement end plate for multiple conversions of both cartridge styles. New Developer Roller for Samsung Cartridges SCC claims its new, replacement developer roller for the Samsung ML-1610/2010 improves the performance of remanufactured cartridges. According to Static Control, this new developer roller will work as a system with SCC toner, wiper blades and OPC drums, to provide optimum, consistent performance for aftermarket cartridges. Worn components will increase possible field failures in remanufactured cartridges and worn developer rollers often have flat spots. Such spots will cause horizontal lines across the page. Damaged rollers will even lead to print backgrounding or banding. Dents and dings on such rollers can cause black spots on the page. Replacing worn or defective developer rollers with a new component can help to remove uncertainty in remanufacturing and improve the quality of a remanufactured cartridge.

MSE Releases Compatible Color Cartridges for HP Printers MSE, a global leader in cartridge remanufacturing technology, announced the release of compatible cartridges for HP M300/ M400 Series and M55I printers. For both of these compatible cartridges, MSE utilizes its revolutionary Secondary Cleaning System (SCS). MSE claims that this system eliminates many of the quality issues that have hurt the industry and resulted in a low color market share.

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MSE President Yoel Wazana said:”Once again, we are employing SCS technology to eliminate print defects related to toner building up on the PCR and a host of other ACT technologies all equating to the best product available on the market. For our customers this is also a great opportunity because our precision robotic routing technology enables us to convert oldstyle cores, ensuring continuity of supply even at this early stage.” Wazana added, “We have no doubt that these two cartridges will be very popular sellers. We made a major investment in tooling to automate the process which will lead to high color success rates. We are very confident in the technology we are applying.”

About MSE Founded in 1994 by Yoel Wazana, MSE is the largest remanufacturer with U.S.-based production facilities and a leading-edge innovator in the marketplace. MSE pioneered the process of Intelligent Re-Engineering™, which employs patented technologies, proprietary processes, and stringent testing methodologies that result in the market’s best alternative to high-cost OEM print consumables. MSE has sales and distribution in Canada, Europe (UK and the Netherlands), Israel, Brazil, California, and Pennsylvania.


Recycling Times Magazine

Product Release

ILG Releases Reman Cartridges Color Toners for HP Users International Laser Group (ILG) has recently released remanufactured cartridges for HP LaserJet Pro 400, M401 and M425 series printers and replacement toners for HP M500 series printers. The remanufactured toner cartridges include standard yield CF 280A and high-yield Model CF280X. According to ILG, cartridge CF208A can produce up to 2,700 pages, the same output level as HP, a great alternative to the OEM monochrome cartridges. CF208X can print a total 6,900 pages, which will save users much money and as a result is an ideal solution for MPS providers. ILG also claims that as part of its quality assurance program, extensive quality control and print tests are conducted, which guarantee the quality of these cartridges.

The toners, including CE401X (Cyan), CE402X ( Yellow), CE403X (Magenta) and CE400X (Black), are released as replacement for the HP LaserJet Enterprise 500 series.

With an 11,000 page yield for black toner and an 8,750 page yield for color, the toners can make print work easier. ILG promises the toners are of excellent quality and substantial cost savings compared to the OEM products. Jumbo

Color is the first-to-market product for the CE401 Series. According to ILG, it brings 45% higher page yield in color. ILG offers an extensive line of HP and other quality OEM alternative products in both monochrome and color. ILG claims that their toners are of premium quality and each printer cartridge is tested to ensure excellent color quality imaging and sharp high-density print results. About ILG Established in 1988, ILG is headquartered in Woodland Hills, California with four additional nationwide distribution centers respectively in California, Texas, Illinois, and Pennsylvania. It is the oldest family-owned cartridge remanufacturer in America. The company now employs over 500 team members. For more information please visit www. ilglaser.com

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Recycling Times Magazine

Product Release

Faroudja Releases Color Toners, Mag Roller Cleaning Solution Faroudja Toner (San Carlos, CA) announced new color toners and a mag cleaning solution for use in Xerox DocuColor 240 and Xerox WorkCentre 7425 printers. Toners available are cyan, magenta, yellow and black (CMYK). While the black toners are sold in 475 gram bottles, color is shipped in 275 gram bottles. For bulk orders, black toner is also sold in 10Kg bags. Faroudjia claims that the 10 Kg packaging is a benefit to customers as it saves money as well as material. “In this difficult economic environment, people are looking to cut costs, and getting bulk toner is a good way.” explained President Phil Faroudja. “We’ve seen a lot of worldwide demand for the printers, so we believe our toner will be popular.” Faroudja added, “All toners have been thoroughly tested, and we think our customers will love the quality.” In addition, the company introduced a new mag cleaning solution to clean and preserve

magnetic rollers. This solution, offered in 18-ounce cans, works with any magnetic roller in the market place, says Mr. Faroudja. Marketing Director Timothy Farrell has added, “This is really good to use if you want to extend the life of your mag roller.” He explained that “Applying it does a solid job of cleaning and preserving the roller.” With the release of this new range of products, the company aims to gain more customers and capture an increased market share.

UniNet Offers Toner Cartridges for HP Color Printer UniNet, a world class quality manufacturer and solutions provider, announced new supplies for HP LaserJet Enterprise 500 M551 color printers, promising good graphics quality printing. Uninet’s X Generation color toners and components were launched for the HP LaserJet Enterprise 500 M551 color printer series. UniNet offers a complete

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remanufacturing solution for this new printer, which is modeled after the C3525/4525 printers. The company highlights the graphics quality printing rate of the product. UniNet says the print speed of the cartridge can reach 33 ppm, with E-printing and duplex capabilities as standard features. The black toner cartridges (CE400A and X) are rated at 5,500 and 11,000 pages respectively, while the color cartridges (CE401A/402A/403A) are rated at 6,000 pages each. Because empties are always a problem with new printer introductions, UniNet also offers a conversion waste hopper that works with a CP3525 cartridge. Remanufacturers can convert it for use in the M551.

Jadi Imaging Offers Color Toner for Toshiba Multifunction Machines New from Jadi Imaging Technologies Sdn Bhd ( Jadi) is toner for use in Toshiba e-Studio Multifunction Machines. Malaysia-based Jadi, a world leader in toner manufacturing, introduced its new JT-550 toner. It is recommended for use in Toshiba e-Studio163/ 165 166/ 167/ 203/ 205/ 205SE/ 207/ 237, e-Studio 200L/ 202L/ 230/ 232/ 280, e-Studio 350/ 352/ 353/ 450/ 452/ 453, and e-Studio 550/ 650/ 810 machines. The e-Studio 550 multifunction machine offers high volume, good color printing and fast speed. It has a maximum monthly copy volume of 400,000 pages. The Toshiba patented Serial Filter and Image Stabilization Technology provide high image sharpness and good halftone and gray scale quality. With the first copy out within 3.2 seconds, it can copy at 55 ppm with 2400 x 600 dpi resolution. The JT-550 toner has been formulated to deliver good and consistent density at higher page yield and thus lower cost per page, according to Jadi. Also, it claims, due to careful selection of raw materials and control over particle size, the new Jadi toner is competitive with the OEM product. It can produce high image quality that resists mechanical stress by virtue of its better fusing capability. About Jadi Imaging Jadi Imaging is a world-class independent toner manufacturer. The Group is principally involved in the development, formulation and manufacturing of toners for laser printers, photocopiers, facsimile machines and multifunction office equipment.


Recycling Times Magazine

Features

Recycling Times Makes History at Conference@2012 By Art Diamond, Consulting Editor Recycling Times Media made history when it brought together representatives of the cartridge remanufacturing industry with delegates from Hewlett-Packard, Xerox and Lexmark to discuss issues of common interest. The one-day Conference@2012 forum held in Zhuhai, China, preceded CIFEX|RemaxAsia, the world’s largest print consumable exposition. While original equipment makers (OEMs) and aftermarket distributors of remanufactured cartridges have battled each other for market share these past 25 years, they held joint discussions on Sunday, September 23, over at least one area of common interest: cleansing the market of counterfeit cartridges. Called by a variety of names—clones, new molds, compatibles—these unauthorized products, many of which infringe OEM patents, are draining sales income from OEMs and rechargers alike. In the brief history of its CIFEX|RemaxAsia Expo series, Recycling Times Media has built the event to its current awesome size. Today, it boasts the largest number of Visitors of any imaging consumables trade show on the Planet. Mr. Tony Lee, Managing Director, has been innovative in planning

the program and inviting the world’s leading experts to speak on pressing industry issues. In the past two years, he tried to pull industry leaders together by setting up a global remanufacturing industry general assembly (GRIGA) to discuss policy, problems and challenges. It was a costly venture that met with little support from established organizations in the Western world. Undaunted, Mr. Lee added a second element to the show this year to draw attendees from the commercial printing industry. Called Conference@2012, the new segment attracted 192 delegates, including representatives from the major OEMs. It succeeded in giving voice to concerns of interest to both sides of the replacement cartridge industry. Nine speakers were featured from: Aetas Technology, Bobo

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Recycling Times Magazine

Features Wang; California Polytechnic Institute, Dr. Xiao Ying Rong; CCID Consulting, Denny Henger; Diamond Research Corp., Art Diamond; In-Map, Jan de Kesel; Lexmark, Mr. Andrew Gardner; Pantum, Kennard S. Cloud; UMAC, Sergei Zubkov; and, Xerox, Dr. Ed Dalal. Their talks gave the meeting a new dimension. Andrew Gardner kicked off the session by defining the various replica cartridges challenging legitimate OEM and aftermarket products. He explained the penalties that could be imposed upon those who make, use or sell these false products. Clones, for example, may be subject to a charge of patent infringement which involves civil action and complaints with fiscal penalties. Clones that are sold or offered for sale, in the trade dress of an OEM cartridge are subject to criminal action, including fines, penalties and possibly jail time. These are counterfeits as they are designed to trick the Buyer into believing they are true, OEM products. The term “compatible” is less specific and could be either a legal or an illegal product that performs as a dropin replacement for an OEM cartridge. However, many compatibles are too weakly designed, or poorly constructed to withstand the rigors of repeated reman operations. Mr. Gardner also explained the difference between a limited exclusion order and a general exclusion order that might be imposed by the International Trade Commission and enforced by U.S. Customs authorities. These orders prevent the import of products that infringe existing U.S. patents or violate intellectual property rights. In his presentation, Dr. Ed Dalal of Xerox noted that color printing is becoming more prevalent as digital desktop printers and digital presses proliferate in the marketplace. Mr. Bobo Wang traced the history of non-impact printing hardware and technology, bringing us up-to-date on his revolutionary LED printer. He compared the complexity of the popular laser printer engine with the simplicity of a fixed array of diodes. Mr. Wang noted that a typical spinning mirror, which causes the laser beam to scan an image across a photoreceptor drum surface, rotates at speeds up to 50,000 revolutions per minute (rpm). Speaking of the future for offset lithography versus digital printing processes, Dr. Xiao Ying Rong of Cal Poly predicted that offset presses will

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continue to dominate the field for print jobs above 1,500 impressions while digital devices (laser and LED) will be preferred for tasks involving less than 1,500 impressions. Among the facts and figures presented by industry analyst Sergei Zubkov is the high growth rate of digital printers and presses in Russia from 2012 to 2016. By the time Conference@2012 ended, attendees realized that a coalition of OEMs and reman companies is an achievable goal that offers benefits to both parties. It educates dealers, distributors and consumers worldwide on how to identify and avoid counterfeit cartridges. Gardner also displayed photographs showing truckloads of illegal cartridges that have been seized by local police and agents of the FBI. Counterfeits are also treacherous after use if they enter the spent cartridge pool. If recharged and resold by an unsuspecting remanufacturer, they can unwittingly convert an honest business person into a felon. If for no other reason those trading in spent cartridges should heed the old adage: Let the buyer beware! This raises the question, “Who, or what agency, is available to certify whether a spent cartridge is a genuine OEM product or an illegal counterfeit? Who can verify that the first sale of any given cartridge was made in the United States? At Conferenc@2012 we learned that Lexmark can certify the provenance (manufacturer and country of first sale) of their cartridges from a code number embedded on each one. If the counterfeit cartridge is one topic of mutual interest to OEMs and rechargers, then imaging technology is another. Perhaps technology should be the focus of attention for next year’s forum. Of course, too many formal classroom sessions are objectionable at a trade show as they remove Visitors from the Exhibit area, but exposure to both sessions is essential to fulfilling the mission of a well-balanced Exposition.


Recycling Times Magazine

Features

CIFEX|RemaxAsia Expo Continues to Break Records For the 6th year running, Remax Asia Pacific’s annual international trade show for the cartridge remanufacturing industry broke previous records. The Zhuhai event attracted almost 10,000 visitors from 85 countries around the globe to tour 425 exhibits at the massive Zhuhai Airshow Centre September 24-26. Industry veterans marveled at the size of the show and the investment by hundreds of exhibitors to provide colorful, imaginative booth displays. “This industry has never seen a show of this scale in terms of size or quality before,” commented Steve Weedon. As in years past, the show opened with a blast of drum beats and dancing dragons onstage under a huge tent. It closed with fireworks and a shower of confetti. In between, attendees heard talks from city and government officials including the distinguished Mr. Wu Sun—Chairman of the Chinese Council for the Promotion of International Trade (CCPIT)— and a welcome from Zhong Guo Sheng—Secretary General of the Zhuhai Municipal Government. Among the outstanding highlights of the show was honoring individual inventors from both the academic and industrial world. Print-Rite CEO Arnald Ho presented awards to those innovative individuals, including many young people, whose skills and imagination have advanced

both the technology and the design of equipment to the benefit of suppliers, distributors and consumers. Stressing the environmental friendliness of remanufactured cartridges and the Green message of our industry, the award ceremony also featured furniture constructed from 1,200 empty toner cartridges (See below). Print-Rite displayed two innovations: scented inkjet inks in four floral and fruit fragrances, and a unique, inkjet cartridge recharger capable of filling one cartridge every 40 seconds. The stylish, colorful unit is priced at 1/10th the cost of other commercial filling machines. Under the title of providing a One Stop Solution, Print-Rite combined its 9 subsidiaries— Utec, Fanling, ICMI, APS, Leamik, Neojet-Apollojet, PSC, PrintRite Technology, and Consumable Parts—all in a single booth.

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Features makers. Each “promised” their components and products are designed, engineered and patented to be safe to use, do not infringe OEM patents, and “will keep remanufacturers and distributors out of court.” O n t h e s h o w r o o m f l o o r, exhibitors used innovative measures and techniques to attract visitors to their booth. Some took photographs, others used clever artwork and sophisticated designs. Several favorable comments were heard regarding the colorful booths

Ninestar used the occasion to celebrate the first Anniversary of its launch of the Pantum printer. Several hundred delegates joined CEO Jackson Wang in the revelry which took place at the elegant Mayflower Hotel in Zhuhai. Guests were bused over to the hotel directly from the Zhuhai Airshow Centre. In addition to a hand-served dinner, a continuous flow of wine and beer, and some clever games on stage, the event featured a magician who amazed the crowd with his illusions. He caused doves to suddenly appear from a clump of shredded paper and fly off. Later, he shocked a male guest by literally debriefing him with the aid of a pretty volunteer! If we had to choose one word to describe the difference between CIFEX 2011 and 2012 it would be diversification. More Companies are offering a basket of consumable products rather than just toner or ink jet ink. Apex Microelectronics, for example, has expanded their offerings to include smart chips, toners, inks, OPC drums, doctor rollers, magnetic rollers, etc. Another ‘buzz’ phrase at the show was “stay out of court”. The three largest Zhuhai show exhibitors, Static Control, PrintRite and Ninestar, strongly promoted their components and compatible cartridges as respecting the intellectual property of the OEM printer

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and their creative construction. “There is no other exposition on earth that features so many booths, so many visitors and such elegant booth construction as CIFEX 2012,” said one industry expert. Indeed, the low cost, pipe-and-drape booths of yesterday are gone, giving way to hard-sided enclosures today. All things considered, CIFEX 2012 was a tribute to China’s many creative contributions to the world’s printing and imaging industry. Much business was transacted this year illustrating the fact that despite a failing economy in central Europe, recharging is a booming industry. Office managers and independent consumers support the recharging and recycling concept because it saves money, conserves energy, and provides jobs for the unemployed.


Recycling Times Magazine Magazin

Featu Features

Cartridge Wars: The Attack of the Clones In recent years, a flood lood of new built, “compatible” cartridges has flooded the European market, mainly from China. In many cases, they are cheaper and easier to source than empty, used cartridges and some remanufacturers and retailers have opted to sell them, instead of remanufactured cartridges. Dealers, wholesalers, retailers and consumers are confused. In some cases they are not aware the “new builts”, “compatibles”, or “clones” as they have become known, may infringe the copyright of the original printer manufacturer (OEM). To help resolve the situation, the European Toner and Inkjet Remanufacturers Association, known as ETIRA, has authored a white paper “Guide to Clones”. Positives ETIRA boasts its members collectively produce more than 60% of the total remanufactured products in Europe. After 10 years of hard work lobbying and promoting the industry, the Association is recognized by governments as the industry’s peak body for consultation and legislation advice. Its statutory seat is in Brussels, the de facto capital of the European Union, but its Secretary General, Vincent van Dijk, has his office in Breda, The Netherlands. During the last 10 years, ETIRA has worked on improving the quality and standards of its members, and providing consumers with better products. It has also provided its members with legal and regulatory advice, public relations, and networking opportunities to grow the industry. On its release, ETIRA’s “Guide to Clones” received positive comments from the industry in Europe and abroad. Art Diamond, President of Diamond Research, said “Though arch competitors for replacement toner and inkjet cartridge sales, OEMs and aftermarket remanufacturers found common

ground in their mutual desire to rid the market of new build (clone, counterfeit, new mold) cartridges. For these rivals to find common ground is good for the entire industry especially if new builds are driven from the market.” Chairman of the Printer Consumables Committee of the China Computer Industry Association (CCIA), and Chairman of Print-Rite Group, Arnald Ho pointed out, “The purpose and the direction of the Guide is positive. And it gives some good advice on the procurement of cartridges by government and corporate users. China should also produce a similar guide, because it will be very helpful in educating users.” Disputes: Is It Objective? Differing opinions have been offered during interviews Recycling Times conducted with industry leaders. Some say the cartridge classification defined in “Guide to Clones” is somewhat arguable. Others say a more unscientific approach is needed, especially over finding a more suitable definition for “clones”.

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Features According to Arnald Ho, the Guide needs more work. “It’s not as objective as it could be, and could be more professional in some details”. He further explains: “The Guide defines ‘potential fake’ as a cartridge which ‘looks confusingly similar to the OEM product’ but ‘replaced by inferior technology replacements’. Third-party component suppliers also exist in the automobile industry . When a car’s headlight breaks down, it needs to be exchanged. The position is fixed, and the shape has to be similar, or it simply won’t fit in. The focus should be on the patent rather than on the shape.” In his opinion, a similar shape does not constitute patent infringement, unless the shape itself has a patent. Ho also asks what is meant by ‘inferior technology’ when referring to ‘clones’. “Who can judge objectively what’s ‘inferior’ and what’s ‘superior’? Future editions of the guide should provide such objectivity.” Laws vary across different countries in Europe, as does OEM patent registrations. Ho suggests further editions of the Guide should reveal comprehensive research on these aspects has been conducted. “The Guide should contain appropriate suggestions based on the research findings. This will improve the integrity and value of the Guide.” In the view of Scott Zang, Ninestar’s Assistant President, the classifications published in the Guide are not consistent with industry convention which divides cartridges into four categories—OEM, compatible, remanufactured and counterfeiting cartridges. Among them, compatible and remanufactured cartridges can be legitimate or infringing which can be further divided according to trademark, appearance, design or other patent infringement. Compared to these existing industry definitions, he says the Guide’s classification seems “blurry and confusing”. Zang explains: “As an example, the ‘imperfect fake’ clone is defined as a cartridge which ‘looks like OEM at first sight’ with ‘use of OEM brand’. Obviously such a cartridge infringes the OEM trademark and design patents which makes it a ‘clone’ as well as an ‘infringing compatible’, as well as a ‘counterfeit’. Such overlapping is quite confusing.” The definition of a ‘potential fake’ clone also needs to be reviewed. According to Zang aftermarket players are quite competitive in their use of research and development of technology. “Ninestar, for example, has patented a non-sponge ink compatible cartridge for Epson printers. Compared with Epson’s hydraulic valve, Ninestar uses a pneumatic valve in the ink supply system, which is not only different,” Zang claims, “but is more advanced than the OEM’s design.” He asks why is every ‘potential fake’ cartridge deemed to be ‘inferior’?

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A battle: Compatible vs. Reman? ETIRA’s Secretary General Vincent van Dijk, told Recycling Times: ”By putting this Guide into several languages, and distributing it across Europe, we are telling the resellers and distributors about the issues at stake, about the dangers involved and the care they need to take before deciding “yes” or “no” about trading products that may infringe OEM patents in Europe. So it’s a teaching tool. It’s a tool to educate our client base as to the dangers involved.” Van Dijk is correct. European dealers are facing more and more legal challenges. According to market research expert Charles Brewer, ”OEMs have been filing—and winning—more lawsuits against manufacturers of cartridges that infringe their intellectual property. Cartridge manufacturers are not the only ones named in these OEM lawsuits. Resellers, distributors, and other channel organizations are being named as defendants, and this trend is increasing.” With the weakening demand brought on by weaker currencies, and the change in the way consumers print, companies are often trapped in a price war. Facing fierce competition, non-OEM cartridge dealers will look for suppliers who can provide a lower purchase price so they can maintain or get larger margins. As a result, they are also drawn into this war. In March 2012, HP and Samsung sued European dealers for infringing cartridges they imported and sold. For remanufacturers, infringing consumables and newbuilts bring legal risks, but they also impose huge price pressures on the remanufacturing market. Luke Goldberg from MSE, the largest remanufacturer in the United States, points out: “It (the new-built industry) has greatly impacted the remanufacturing market because in many cases it has shifted share from remans to new compatibles and in the process market, prices have deteriorated and moved farther and farther from the OEM benchmark. Many global markets such as Australia, Brazil, etc… that used to be thriving reman markets, are now just consumers of new compatibles. Jobs have been lost and prices have become depressed. Even in the US and IP protected markets, lower end products such as 12A, 35A, TN350 are predominantly new molded or newbuilt compatibles. The sad part is this business didn’t come at the expense of the OEM, it came at the expense of reman.” Goldberg reflects the anger and views of a remanufacturing industry under threat in both the USA as well as Europe. The Guide accurately warns: “Most new-built toner cartridges infringe one or more design and/or functionality patents of the printer manufacturer (OEM). That’s why selling/ buying them is illegal.” They add, “if you sell a new-built non-


Recycling Times Magazine

Features OEM toner cartridge today and the empty cartridge appears after 2 years in the empty collection, you will still be held financially responsible and taken to court!!” Some readers of the Guide are concerned that most dealers are not technical experts; they are not able to judge whether a toner cartridge infringes patents or not. Such repeated warnings will possibly lead to panic and which means they will end up avoiding all aftermarket cartridges including remanufactured, tagging them all as "new built". The Guide does appear to some to advance the opinion that any similar looking compatible aftermarket cartridge which is not remanufactured, even though it may hold patents of its own, must be treated with suspicion. But is this a fight between remanufactured cartridges and other compatibles over market share? One interviewee, asking to remain anonymous, commented “Obviously, a battle is on. Looking at the current European market, I think, this Guide might have other intentions.” But other interviewees held different opinions on the battle theory. Arnald Ho says, “the premise should be whether it infringes patents or not. Legitimate new-builts have a long history. Print-rite has been dedicated to making legitimate new built and ribbon cartridges for a long time. We totally respect the intellectual property of the OEMs. And we expect them to respect our legitimate patents as well. In fact, as long as the product is legitimate it is the consumers’ right to make choice.” New-Built = Infringing? Is a new-built non-OEM cartridge a ticking bomb? “Of the various types of non-OEM cartridges on the market today, compatibles are the most risky from a legal perspective,” says Charles Brewer. “Most OEM cartridges have numerous patents covering virtually every element of the cartridge’s design. Designing a

compatible without infringing one or more of these numerous patents is very difficult.” Brewer admitted there are many legal compatibles from well-known manufacturers. He added there loads of counterfeit and clone cartridges in existence, making it very difficult for dealers to tell them apart. Like the ETIRA Guide, Brewer gives good advice for dealers: ”If you choose to purchase and resell third-party cartridges, remember that quality and reputation matter more than price, particularly when trying to avoid infringing products. Infringing clones often feature prices that are tantalizingly low.” Brewer offers good advice as well: “Build a relationship with your supplier of third-party cartridges. Investigate and ask questions. Are the products being sold as ‘non-infringing’ or ‘patent free’? If so, ask what this really means.” The market is mixed up with products: legal, illegal, infringing and non-infringing. But a new-built compatible is not necessarily the same as, and cannot be equated to being infringing. On the contrary, there are the R&D efforts by many aftermarket players who respect the intellectual property of the OEMs and are working hard to overcome their patent barriers. Up until 31st July 2012, Chinese manufacturers, for an example, have invested some 50 million RMB (US$8 million) in R&D and patent maintenance. One company, Print-Rite, owns 1,878 patents around the world, accounting for half of the patents registered by Chinese remanufacturers. In January 2011, Epson filed a patent invalidation application against Print-Rite's continuous ink supply system (CISS) patents. History was made when for the first time, the position of OEM and third party supplier was exchanged.

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Features From another perspective, just because an OEM holds a patent, does not mean that it is valid. On 16th April 2008, after extensive investigations, the Patent Reexamination Board of China’s State Intellectual Property Office made its Decision on Examination of Invalidation and declared Epson’s patent (patent number: 00131800.4) for the invention of the ink cartridge invalid, saying that the amendment is not supported by the original scope of disclosure, and was in violation of Article 33 of the Patent Law. This told aftermarket players that OEM patents, if unreasonable, can be tested and invalidated. Infringing or Not? This is crucial! According to Helen Duan, a patent attorney from Innopat Intellectual Property Co.,Ltd., the Guide has described in detail the civil and criminal responsibilities involved with the manufacturing or trading of patent infringing cartridges. "New-built" is not simply equal to "infringing". Whether it is infringing or not depends on the actual product. Duan says, “Despite the confusing description of the word ‘clones’, the guide remains objective and comprehensive on the whole and it plays a significant part in regulating the market order and creating a fair-play environment. For those who take patents and innovation seriously, OEM or aftermarket, this is a blessing." But it’s certain that inconsistent quality or illegal actions will harm the business and the reputation of the industry as a whole. Duan suggests industry associations should hold more training on legal matters, and businesses shall avoid legal risks by keeping away from patent infringement, carrying out selfexamination and correction, consulting legal institutions, and conducting product exportation risk analysis." The patent system, she warns, is very complicated. Enterprises are encouraged to consult professionals to analyze whether the product is likely to infringe patents in the target market." What will the Chinese manufacturers do? Mary Ouyang, General Manager of Mito Color Imaging Co., Ltd., suggests Chinese manufacturers should strengthen their knowledge on intellectual property, strengthen innovation and develop their own patents. “Never trash the market with cheap, illegal products,” she advises. “We should stand side

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by side and make full use of our advantages to build our reputation." "Without doubt, cutthroat competition leads to a slide in prices. Some players, running only after profits, pay little attention to innovation and legal aspects, and are reluctant to invest in intellectual property. This is what hinders the growth of these cartridges manufacturers." says Tony Lee, publisher of Recycling Times Magazine. The Guide urges dealers not to focus on price alone, which can only result in manufacturers going down the same track. "More and more aftermarket players are beginning to realize low prices are not the best way to win the market. Rather, it must be won with good quality products." On the price issue of Asian, especially Chinese products, Goldberg agrees: “The biggest issue in the Chinese market is there is just too much capacity. Unlike other global markets there has been no consolidation and therefore there is an over supply which can only lead to lower and lower prices.” Also, actions over intellectual property by the OEMs can help stem the tide of lower cost new compatibles into global markets they choose to take action in. The bottom line, however, is we cannot wait or rely on any intervention by the OEMs. The only way to survive in the longer term is to develop a value proposition that isn’t based on price alone. MPS and other solution based selling models is one way to achieve this. The cry for 25 years has been to build a better quality cartridge. That cry is as loud today as it was then if we want to convince consumers around the globe aftermarket cartridge supplies offer quality, price savings, and a greener choice than the OEM.” Call to Action It is the view of the publishers of this magazine, Recycling Times, more work is obviously needed to add to what ETIRA has started with its Guide. Representatives of the key trade associations including ETIRA, I-ITC, UKRA and CCIA together with representatives from the industry media and analyst companies, should conduct a summit to advance the cause further. The final result should educate and inform remanufacturers, dealers, retailers and consumers alike as to the choices available.


Recycling Times Magazine

Features

MPS Impact on Supplies: Effects of MPS in the U.S. Supplies Market Released at the end of 2010, InfoTrends’ MPS Impact on Supplies: U.S. multi-client study addressed the concern of managed print services (MPS) and its effects on the supplies industry. Considering that a major aspect of most MPS engagements is the consolidation of production devices and the limitation of print, this reduction of paper printed upon and supplies used can have a great impact on the supplies market. The report seeks to provide useful, actionable recommendations to take advantage of the MPS opportunity or to minimize the threats from MPS engagements. MPS Affects U.S. Supplies Market MPS is gaining share of the U.S. office environment, and is expected to control 28% of office environment print volume by 2014. Large business with over 1,000 employees will be the most affected by MPS, with 49% of print volume under a MPS agreement. We expect that penetration into large organizations will be peaking in 2014 and this will cause MPS to start to flatten and see a slight decline in total print volume under MPS control as ongoing improvements cause print volume in large business to decline. MPS causes a significant reduction in print volume and, therefore, a decrease in consumption of supplies within a MPS environment. On average, MPS allows user organizations

to reduce their print volumes by 14% to 19%, depending on company size and year. Print volume reduction on personal inkjet is even greater. We estimate print volume from personal inkjet devices is reduced by 38% in an MPS environment. Combined with other cost reduction efforts, including shifting print volume to higher class, lower cost per page devices, restrictions on color, and use of non-OEM supplies, MPS engagements are able to reduce marking supplies consumption by 27% to 31%, depending on company size and year. (See Figure 1) The majority of savings on marking supplies are accomplished by overall print volume reductions and shifting pages to lower cost per page devices. Use of third-party www.iRecyclingTimes.com

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Features Figure 1: U.S. MPS Impact on Supplies Usage Reductions (2010)

supplies, though significant, does not appear to be greatly increased when compared to the prevailing use of third-party supplies in the general market. There is an increase, but only by about 7% in share. Overall, the increased use of thirdparty supplies only contributes 2% to overall savings in the consumption of marking supplies. About 95% of the savings come from print volume reductions and page shifting to lower cost-per-click (CPC) devices. The remaining 3% of savings come from other efforts, including the increased use of highyield toners, price reductions, and similar efforts. (See Figure 2)

MPS has an impact on the overall market. The savings that MPS users achieve reduce the overall market size within the office environment. It reduces total print volume in the overall market by 6% when compared with a baseline forecast that postulates if MPS was never invented. By 2014, MPS will reduce the consumption of marking supplies by 10% and decrease the consumption of paper by 7% in the office environment compared to this baseline forecast. Overall, MPS reduces the market for supplies in the office environment by $2.6 billion in 2014 versus the baseline scenario where MPS had never been invented.

Figure 2: U.S. Source of Supplies Savings in an MPS Engagement (Paper and Marking Supplies)

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Recycling Times Magazine

Features

Paper consumption is also impacted by the reduction in print volume and the shifting of pages between devices. Paper consumption under an MPS will be reduced by 18% to 24%, depending on company size and the year of the forecast. The majority of this reduction comes from overall print volume reductions followed by the shifting of print volume to higher class devices and from color to monochrome devices. Print volume reductions and shifting pages account for 98% of the paper savings. Paper is more often not included in the MPS contract, but about 12% of paper used in a MPS environment is delivered

as part of the offered managed print services. There is a great opportunity to increase paper participation in MPS by working with paper merchants as partners. It appears that MPS will have an impact on supplies channels. MPS can be viewed as a new channel distinct from existing channels. MPS providers frequently buy supplies from wholesalers or directly from the supplies manufacturers, whether OEM or third-party. The extent to which contract stationers are unable to institute MPS programs of their own, or to gain share of MPS, contract stationers are poised to be squeezed out of part of the market. Other channels, such as Internet dealers, are also likely to feel that squeeze as MPS takes control of supplies within organizations. InfoTrends’ MPS Impact on Supplies: U.S. Multi-client The objectives of InfoTrends’ MPS Impact on Supplies: U.S. multi-client study are to understand how managed print services will impact the market for supplies in terms of the total MPS environment and the total market. A complementary objective is to provide useful, actionable recommendations to take advantage of the MPS opportunity or to minimize the threats from MPS engagements.

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Profiles

Bobo Wang Perfects LED Color Imaging Will it Replace the Laser Printer? Chinese scientists and engineers, working in a small laboratory, dedicated 15 years to just one task: breaking the grip of US, Japanese and Korean companies on the realm of digital printing technolog y. The next generation printers, conceived by inventor Bobo Wang and born in Taiwan 6 years ago, will likely revolutionize the digital printer industry worldwide. This outstanding research and development effort took 15 years to complete, cost more than $100 million and consumed more than 1,000 man-years of labor. But in the eyes of Bobo Wang, CEO of Aetas Technology (Zhenjiang) Co., Ltd., the effort was entirely worthwhile. It transformed his dream of a LED (light emitting diode) array printer into reality. Under his leadership, Aetas successfully overcame various patent barriers and developed China’s first digital, non-impact printer while retaining all intellectual property rights. Today, Aetas owns a unique image development process based upon “DCjumping toner technology.” It is regarded as one of the great inventions of digital printing in the past 50 years. With this breakthrough, Mr. Wang has positioned China at the cutting edge of the state-of-the-art in office and commercial nonimpact printing. LED: The Lightest, Smallest, Lowest Cost Color Printer Grey-haired, medium height and always wearing a happy smile, Mr. Wang’s self-confidence inspires his employees and

co-workers. A 65-year old man who was seldom featured in Chinese media, he has already become a significant figure in Taiwan’s high-tech community. As a man who initiated the world’s desktop scanning industry and co-founded Microtek International Inc., he used to be a familiar face to readers of Fortune, Forbes and other international business and news magazines. He has become a legend among Taiwan’s leading scientists. In 1996, at an age when most people retire to enjoy life, Bobo Wang, with a dream in his heart, launched another business. His vision was crystal clear—to make the lightest, smallest and most affordable digital color printer for millions to use and enjoy. On July 1, 1996, Mr. Wang formed Aetas Systems Incorported (ASI) in Taiwan, the predecessor of Aetas Technology (Zhenjiang) Co., Ltd., along with Dr. Yuji Hiraoka, and Dr. Dinghua Hu. With $7 million drawn from their personal savings and joint venture funds, the R&D center was set up in Hsinchu industrial zone. Later, the holding company was established in the United States and business operations began. www.iRecyclingTimes.com

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Profiles From the very beginning, Bobo Wang has been focused on the LED printer. Though the LED imaging process is much simpler than laser, major manufacturers didn’t take it seriously due to its high production costs. But Mr. Wang had a profound vision. “I was thinking about how I could lower its cost and minimize its size within 5 to 10 years. In 1992, LED technology was a failure compared to the laser, but in my eyes, the cost could be substantially reduced. Also, it was smaller and more reliable. So we picked the LED,” says Mr. Wang. During a business talk, an LED print head provider was confused: “We have lost the battle against the laser,” he said. “Why did you still choose the LED?” Mr. Wang replied:"Because the future will be a full color era and LED will stage a comeback. Therefore, we should have confidence in it.” Time tells us that he was right. Today, the LED is quite competitive with the laser printer in terms of initial cost. It also has a greater potential for sustainability, lower maintenance and higher image resolution. Many manufacturers are now lining up for LED technology, exactly as Bobo Wang had predicted! Kingdom of the Giants Mr. Wang expected the R&D process to take 5 to 7 years, 200 researchers and $50 million. Afterwards, the product line would be ready for marketing. But far exceeding his estimates, the development time tripled and the budget more than doubled. When the going was toughest, he was driven to sell his home and raise money from among friends. Despite these difficult times, he pushed on and finally achieved his goal. One of the major problems, the technology threshold was too high. “In fact,” says Mr. Wang, “about 50 years ago, many multinational companies—especially those in the US—developed laser printing technology. Now these OEMs hold some 200,000 international patents, making them the dominant players in this industry. If you want to enter their ‘kingdom’, you must license their patents and pay them steep royalties, which means your production costs will climb.” All these patent, technology and intellectual property (IP)

Aetas is headquartered in Jiangsu, China.

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barriers blocked China’s entry into the digital printer field. This huge market then became an exclusive game ruled by giants such as Canon, HP and Xerox. They left no room for any other player to gain a foothold. But Bobo Wang, for many years an R&D consultant for Xerox Corporation and a co-founder of Microtek, has always been passionate about computer peripherals, their research and development. In order to compete with Europe, US and Japan, he targeted the printer engine. Printer engines, just like car engines, take extensive resources to develop. As a result, government support is crucial. The printer engines from Ricoh, Canon or Samsung, relied heavily on the governments of Japan and Korea. “The 1980s saw some efforts from Taiwan and mainland China, but all failed to mature into successful businesses,” Mr. Wang observed. “That’s because these giants had their countries backing them up. ASI did not have the backup and was out on a limb. Nevertheless, a miracle did fall into ASI’s lap.” In 2001, Aetas was inspired by proximity theory, which illuminated the path ahead. This discovery enabled a breakthrough in the development of Image-On-Image (IOI) structure and DC-Jumping toner technology. For this new approach, Aetas won the 2009 Gutenberg Awards, the highest honor in the printing industry. In fact, the printer developing method in common use constructs an image either through direct contact between the developer roller and the OPC drum or by an AC-Jumping method. Developed initially by Canon in 1979, this technology enabled image development to take place across a gap, thereby protecting the OPC drum surface from abrasion and wear. But the universally recognized trump—ASI’s DC-jumping toner—had not yet been conceived. The key challenge lies at how to reduce toner adhesion. Aetas found that the uniform distribution of charges on toner particles would lead to a strong toner adhesion towards the conductive layer. Such adhesion is caused by the charges near the contact point. According to the formula, to reduce adhesion, the number of contact points must be reduced. Aetas succeeded in this by developing a special toner and finally reduced DC-jumping and IOI technology to commercial practice. Bobo Wang explains, “Using IOI structure, only one single transfer is needed because the multi-colored toned image can be built up on the OPC drum. There is no need for a separate transfer drum or transfer belt to transport the image onto paper. Compared with other development methods that use 4 to 5 transfers, the IOI approach delivers better image quality


Recycling Times Magazine

Profiles

S2406/S2406N

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and makes a much smaller engine possible. IOI technology is now being used in Xerox iGen3, iGen4, HP Indigo 7000 and Indigo 10000 printers, but these machines cost at least $400,000 while Aetas’ products can be made available for as little as $200! This unique DC-jumping technology enables zero background toner deposition. It is also capable of printing white on black as well as black on white, the world’s first printer to offer this feature.” With its patent on accurate color registration, Aetas successfully made the LED beam dot as small as 54x24 microns, the finest in the world, which can help print accurate documents like medical images, architectural drawings or satellite maps. Even for Tokyo’s Metro map, regarded as the most difficult document in printing, Aetas’ printout is still very clear. The close and numerous lines and train stops can be easily recognized under a professional 60X magnifier. Bobo Wang owed this extreme high resolution to Aetas’ patented toner, DC-Jumping and single transfer technology. These features also placed ASI in an advantageous position when it came to global competition. After 15-years of innovative and ingenious efforts, ASI has been awarded more than 120 patents. It remains the only company outside the US, Japan and Korea that owns integrative intellectual property rights and is capable of color printer R&D, design and production. In order to avoid infringing on other OEM patents, Aetas set up a professional IP team. “This raised the difficulty in R&D and lengthened the time needed,” commented Mr. Wang, adding “Fortunately, we made it and became the only company in this industry that doesn’t need patent authorization. This definitely secures our future competitiveness.” Comparing Page Printing Speeds In Mr. Wang’s words, “Aetas printers are competitive in that they are better in printing quality, lower in cost per page, less in total cost of ownership and not as severe in environmental damage due to fewer replaced cartridges.” Therefore, Aetas is competitive in long-term user experience rather than just in

SR2010/SR2010N

the initial purchase price. “Consumers, when calculating costs, should look at how much printing A4 paper costs, instead of the price of the printer as the former has taken into account all the direct and indirect costs including the printer, consumables, repair and maintenance.” Mr. Wang believes Aetas printers, when competing with Brand A and Brand B printers, can provide best print or copy quality at the lowest cost per page and total cost of ownership. It ends up benefiting not only end users but also channel partners and Aetas itself. The current speed for Aetas printers is 5 pages per minute (ppm) in color. How can that be competitive? Bobo Wang introduced us to a new concept called efficient speed. Usually, people think that a higher ppm means a faster speed. But that’s not the case. Pages per minute just tell us how many pages a printer can print within a minute for the same image. But the time to generate that image is not included. Efficient speed, on the other hand, takes more factors into account.” Mr. Wang explains. “For an entry level, graphics device interface (GDI) printer, the image is generated in a personal computer or notebook, which is quite fast. But a color laser printer with a high ppm is a postscript (PS) printer, with its image generated in the printer’s graphics processing unit (GPU), which is much slower. For example, in medical applications, a 5 ppm Aetas printer can print 4.3 different ultra-sonograph images per minute while another printer with 34 ppm can only print 2.2 images. In fact, entry level printers now occupy 60% of the total sales of color printers in the world, the most important market sector for Aetas.” As for customer service, in order to avoid paper jams or component kit damage, Aetas made some improvement in the design. Thus, paper jams are reduced to just one quarter the frequency of other printers and there is no need to swap component kits as often, substantially reducing maintenance costs. In normal operation, users just need to change the toner hopper and waste bin. As for sales and marketing, “Between industry and channel, Aetas will definitely pick industry so that we can make full use of our technical www.iRecyclingTimes.com

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Profiles expertise to provide added value products or services to the industry and at the same time strengthen our competitive advantage. We will also choose appropriate channel partners but we are not competitors.” Spotting the great potential of domestic market, Aetas decided to gather the core technology and develop new products tailored to the unique demand in domestic market. For example, Aetas Red/Black printer for governmental departments with anti-forgery toner won recognition at its launch. With its excellent printing accuracy, Aetas hopes to enter the medical equipment market. Now, its medical devices with software, paper and printer is under R&D process. According to Aetas, the next generation color multifunction device will soon be launched, which marks a breakthrough in outlook as well as performance. It weighs only 12Kg, another step towards the Aetas goal of “lightest and smallest”. Like Building a Skyscraper Looking back, Bobo Wang recalled, “I could have quit at any moment.” Truly, his path was full of thistles and thorns, much tougher than he had expected. But the dream he shared with his partners always lingered in his heart and drove him forward. He would never forget what his good friend told him on his deathbed: “Never give up. You can make it.” ”So, I fought for all of them not just for myself.” Mr. Wang said solemnly. When Aetas encountered bottlenecks in research, many world experts and consultants came to help. American physicist Mr. Robert W. Gundlach, Xerox’s chief expert and most prolific inventor, was among them. He earned more than 160 patents and is a world authority on electrostatic charging technology. Gundlach led Aetas to develop a new generation charger which he named capatron. Its performance is much better than the existing corotron and scorotron chargers. Dr. Henry Kang, an expert in color processing, also played a role in developing ASI’s revolutionary LED digital color printer. With his Multi-Core, Micro-Cluster Screen together with LPH (lines per picture height) at 600×1200dpi. Aetas created high-quality images with 212 to 300 LPI (lines per inch) and 86 to 200 grayscale, much higher than the human retina can resolve. With these barriers overcome one-by-one, these experts ultimately achieved the peak image quality, the capstone they sought. Bobo Wang tells a story about meeting Xerox’s chief technology expert a few years ago in Rochester. After hearing Mr. Wang’s presentation describing Aetas and its accomplishments, he was surprised: “Bobo, you are amazing,”

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he declared, “You’ve put iGEN3 on desks!” Typically, ideal print quality can only be achieved at high cost, but the sixth generation LED electrophotographic (EPG) printer developed by Aetas, for the first time, realized the perfect combination of high-resolution imaging and low cost. Compared with the first products from Xerox and Hewlett-Packard, Bobo Wang admitted that Aetas printers still lagged behind in color reproduction, but considering the huge difference in cost, this gap seemed miniscule. As to the disadvantage in speed, Mr. Wang is still confident:” with 10 Aetas printers, we can match the speed of an iGEN 3 and still save a lot!” Mr. Wang also mentioned that just as sound can achieve high fidelity, so can imaging. Apart from printing, Aetas has also enhanced document copying. A sixth generation barcode (one that was copied 6 times), can still be clearly scanned. Extensive experiments show that Aetas copiers have better print quality than other OEM devices. With the great effort expended by Aetas’ R&D team, low-cost color printers, copiers and multifunction devices will soon be affordable for all office and home users. According to relevant market research, 87% of print output in the future will be in color. The color printing era is just around the corner. In fact, back in 2006, industrial experts predicted that if the barriers in high quality and low cost are overcome, Aetas’ IOI, DC-jumping technology will promote full color printing and revolutionize the entire industry. In 2010, Aetas set up its headquarters in the industrial zone in Zhenjiang, Jiangsu Province. It owns a 5,400 square meter (m2) building for its business operations, R&D and demonstration facility. Now, Aetas is planning to construct an 8,100 m2 plant to manufacture devices as well as toner cartridges. Bobo Wang has set a goal for himself: drive Aetas to the Top 3 position in China within 5 years and Top 3 in the world within 10 years. The independent intellectual property rights, great print quality, and lowest cost give him great confidence in reaching these goals. With this belief in his products, his mind is clear and determined. Bobo Wang once told the world press “Aetas spent 15 years laying the foundation and will build a world-class 200-story skyscraper in the future. If we do not work hard for the foundation, we can only build a 5-story apartment!” After groping its way forward underground, Aetas has finally sprouted and is ready to grow into a towering tree. Overcoming many barriers and traps, Aetas now blossoms and has grabbed the world’s attention!


Recycling Times Magazine

OEM News

Lexmark to Exit Inkjet Business Lexmark will exit the inkjet printer business and jettison some 1,700 jobs, about 13% of the company’s workforce. The news came following a report of gloomy financial results for the first half of 2012. Those figures showed revenue from inkjet hardware sales underwent a sharp decline of 66% and ended up with Lexmark lowering its full-year forecast. According to a Reuters report, Lexmark will take a pre-tax charge of $160 million in their restructuring plan and expects to close its manufacturing plant in the Philippines by 2015,. The company was also thinking of selling its inkjet-related technology but would continue to provide service, support and aftermarket supplies for its inkjet printers. Lexmark says this is just a part of its restructuring plan to transform the focus on inkjet towards laser business and it has also

been strengthening its print services through several acquisitions. Paul Rooke, Lexmark Chairman and Chief Executive Officer, said: “Our investments are focused on higher value imaging and software solutions, and we believe the synergies between imaging and the emerging software elements of our business will continue to drive growth across the organization.” According to a Bloomberg report, Lexmark may be looking for a buyer and Xerox would be the most likely target, followed by Hewlett Packard. “They’re starting to be an acquisition target,” declared Federico De Silva, an analyst with Gartner, Inc. (Stamford, CT). “The problem is they’re in an industry that is maturing very rapidly, shrinking in many segments, and they’re becoming too small of a player when everybody else is diversifying.”

Epson Claims Micro Piezo InkJet will Challenge Laser At a recent press conference in Bangalore, India, Epson claimed its Micro Piezo technology raises the competitiveness of inkjet and will challenge Laser’s dominance of the business printing sector. Epson discussed its Micro Piezo technology, highlighting the number of advantages it has over laser printing and suggested it can bring a complete revolution to business printing. One of the biggest advantages for Micro Piezo, according to Epson, is its ability to print almost immediately. The technology ensures instant analysis of printing data, and also precise control of the amount of ink fired from nozzles. Epson said that while laser printers need time to warm up, its inkjet printers can take off rapidly. Epson also mentioned that a Micro Piezo print is not based on heat, which ensures the

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quality of the ink is sustained. Heat-based technologies often cause inks to degrade. Epson claims that its mechanical based technology deposits the best ink in every imaging situation. According to Epson, this Micro Piezo technology reduces the cost of printing and makes the task of printer maintenance easier. These benefits will make a difference in the next few years. Epson also expects its WorkForce Pro and K series printers, which embody this technology, to be the next best sellers.

Talking about inkjet...

Charles Brewer President of Actionable Intelligence "The collapse of Lexmark’s inkjet business was totally expected. Lexmark’s inkjet business was poorly managed and has been in decline for 10 years. The company did not put much research and development money into inkjet technology. After doing virtually nothing for more than 5 years and losing much market share, Lexmark finally came up with a new inkjet print engine in 2008 but it was flawed. Finally, within the past year Lexmark came to market with a good business inkjet device but it was too little too late. In my opinion, they should have just exited the inkjet business in 2008 when the recession hit." “I find it curious how in the past month or so, industry analysts start predicting that it's the end of inkjet. Here's what's happening: First, SOHO users are printing less than they did five years ago. As a result, cartridge sales are down. Hardware sales are down because the demand of multiple machines in the home is falling. It used to be that people had multiple PCs in their homes and each PC was hard wired to a printer. Now, with laptops, smart phones, tablets and other mobile devices, people don’t need to have multiple PCs and printers. They only need one wireless printer that is centrally located, and they can print document through their wireless device. So, the installed base of SOHO inkjet machines will shrink and so will cartridge use. Although the market will shrink, it won’t collapse. We are looking for a downward trend that moderates a few years out. I’d expect to see some flattening in 2016. Installed base remains in the 100s of millions worldwide and inkjet remains the largest market in terms of machines and users but not revenue.”


Recycling Times Magazine

OEM News

...Is it facing extinction?

Art Diamond President of Diamond Research Corporation “Because inkjet printing can be roughly divided into three markets--Mobile, Desktop and Wide Format--it’s best to forecast each one separately. The future for Mobile printing holds much promise, but inkjet might not be the dominant technology. The future for Desktop inkjet is blurred as consumers reject the high cost of inks for home and office printers. Also, the low cost of laser printers, and a new generation of LED printers, will likely displace many of inkjet installations. Desktop inkjet is no longer a growth market. Wide format inkjet is the most promising enterprise and its future growth is crystal clear. ”

Luke Goldberg Senior Vice President of Micro Solutions Enterprises (MSE) “There is no question that macro trends in home printing have caused rapid migration of printed content to social media and mobile devices, but this doesn’t mean inkjet is dead. In emerging markets inkjet is still commonly used in offices and in the SOHO due to its small acquisition costs. Additionally, inkjet is still the preferred medium for wide format applications. Speaking of inkjet battles to wrest supremacy from toner in the office, I don’t think it can claim many victories in this battle. There are too many entrenched biases against ink in the office that has hindered its adoption. In SOHO market I do believe business class inkjet has gained some traction, but not in the corporate world. ”

Kodak to Sell Imaging Businesses Eastman Kodak Company has taken a n o t h e r s t e p t o w a r d e m e rg i n g f r o m bankruptcy by selling its Personalized Imaging and Document Imaging Businesses. After extending the patent auction deadline on August 22, Kodak outlined the next step to regroup. The company declared that it has initiated sales of its Personalized Imaging and Document Imaging Businesses. Kodak expects the income together with the patent auction can help Kodak emerge from bankruptcy. To reorganize, Kodak will focus on Commercial, Packaging and Functional Printing Solutions and Enterprise Services. Founded in 1880, Kodak has been a giant in the consumer photography business. The move signals an end to the company’s long legacy in this field. ”The initiation of a process to sell the Personalized Imaging and Document Imaging businesses is an important step in our company’s reorganization to focus our business on the commercial markets and enable Kodak to accelerate its momentum toward emergence,” said Antonio M. Perez, Chairman and Chief Executive Officer. “In

addition, we continue our initiatives to reduce our cost structure and streamline our operating models in an effort to return the company to profitability.” Kodak needs $700 million to exit bankruptcy. The company intended to acquire this income by selling a portfolio of patents, but at auction the bidding for these assets was far below company expectations. Kodak said it would move forward as quickly as possible and complete these transactions in the first half of 2013. ”As we move forward with the Chapter 11 process, we are focused on delivering the highest value to our creditors so that we can emerge as a sustainable, profitable company that continues to meet the needs of our customers,” Perez concluded.

HP Strives to Save Inkjet Business Hewlett-Packard, the world’s largest printer manufacturer is making various promotions to save its ailing Inkjet business. HP has found inkjet segment as a big part of their revenue problem. As Charles Brewer, President of Actionable Intelligence, mentioned in his recent article, HP is working hard to save the inkjet business. It has been near a year since last time the OEM reports increase in Inkjet segment. HP managers believe the weak ink cartridge sales are hurting the overall business. As a result, HP began to run more cartridge promotions last month. In their U.S. retail stores, HP offered “buy two, get one free” for inkjet cartridges. The

promotion was also supported with lots of print ads and online banners. In addition, at its Web store, customers can get an extra 20 percent off for purchases over $50 and free overnight shipping. HP has also been making efforts with individual channel partners. In June, the “Economy Ink” was introduced, cutting about 15% cost with 5% fewer pages yield. The OEM, looking to take up more market share from the remanufactures, has also expanded its Instant Ink program. HP encouraged the customers to return their used empties in exchange for new supplies in 50% off the normal price.

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OEM News

Ricoh India to Delist from BSE Ricoh India is going to delist from the Bombay Stock Exchange (BSE) in a process that might take 6 to 8 months. Meeting on August 29, 2012, the Board of Directors approved the move along with other related matters. According to Equity Bulls, the delisting process will require Shareholder Approval, FIPB (Foreign Investment Promotion Board) Approval and SEBI (Securities and Exchange Board of India) Approval. Equity Bulls also estimates that at the current market price, Ricoh Asia Pacific has to spend Rs. 76 crore = 760 million INR (U.S. $14 million) to delist the shares. Ricoh India Limited is owned by Ricoh Company Ltd. of Japan with 73.6% holding in the company. The balance of 26.4% is held by public shareholders. Ricoh India started operation in

1993 and remains a low profile company. Only until last year, with aggressive product launches, expansion of its distribution network and brand building, did Ricoh India stand out with a revenue growth rate at 45% in FY2012 and 56% in FY2013. The delisting process should take 6-8 months.

Fuji Xerox to Build New Plant in Vietnam Fuji Xerox is setting up a new manufacturing facility in Vietnam to expand its global business. The new installation, called Fuji Xerox Hai Phong Co., Ltd., is located in the Vietnam Singapore Industrial Park in Hai Phong, a city in northern Vietnam. Construction will begin in December 2012 and full operation is expected in November 2013. This new plant focuses on production of digital color multifunction devices, small-sized light-emitting diode (LED) printers and their components such as printed wiring boards and drum cartridge components. The whole project takes 9 billion yen and is expected to produce about 2 million units per year to meet the demands in the AsiaPacific, European, U.S. and emerging countries’ markets. Fuji Xerox expects this new plant to increase manufacturing capacity and avoid overconcentration similar to what has happened

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in China. But why Vietnam? Fuji Xerox says Vietnam harbors a concentration of many industries and boasts an extensive land transportation network with China and the 10 ASEAN countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanamar, Philippines, Singapore, Thailand and Vietnam). Based upon this outstanding feature, Fuji Xerox can further improve its supply chains, and Hai Phong , the third largest city in Vietnam and the biggest port in northern Vietnam, is now the focus of urban development projects.


Recycling Times Magazine English Edition Issue 31  

- Aetas' Bobo Wang Reveals the Next Printer Invention - Recycling Times Makes History as OEMS, Rechargers Meet at Conference@2012 - Cartridg...

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