Recycling Times Magazine English Edition -Issue 29

Recycling Times Magazine

editorial

RecyclingTimes The magazine by the industry, for the industry.

www.iRecyclingTimes.com

Publisher & Managing Director Tony Lee Directors David Gibbons Sabrina Lo Senior Consulting Editor Art Diamond Editorial Team Doris Huang Doris.Huang@iRecyclingTimes.com Tina Chou Jane Yu Jane.Yu@iRecyclingTimes.com Wendy Lee Graphics Design Team Miracle Wei Kevin Deng Sales Team Anna Liang anna.liang@iRecyclingTimes.com Kevin Zhu Sally He Tobee Deng Marketing Team Jessica Yin jessica.yin@iRecyclingTimes.com Tracy Zhang Operations Team Charles Lee charles.lee@iRecyclingTimes.com Frank Yang Sam Lee Joy He Accounts Betty Lee Published by Recycling Times Media Corporation Akara Bldg, 24 De Castro Street, Wickhams Cay 1 Road Town, Tortola, British Virgin Islands

RecyclingTimes

Sales Agency Recycling Times Media Co., Ltd. Zhuhai 5F, Pacific Insurance Building, Jiuzhou Ave, Zhuhai, 519000 Tel: +86 (0)756 3220716 +86 (0)756 3919266 Fax: +86 (0)756 3220717 Email: info@iRecycingTimes.com Website: www.iRecycingTimes.com

2

Auguest 2012

www.iRecyclingTimes.com

L

ast month we saw lots of “NEW”s in our industry.

A NEW name to deliver more precise product information—AEG, the 40-year photoconductor manufacturer, changed its name to HITEC Imaging in order to better reflect its products; A NEW company to create new business and share new business models and values—Steve Weedon, an imaging industry celebrity for decades, established a new consumable parts distribution company based in Hong Kong, promising lower prices to meet customer demands; A NEW relationship to create a win-win future—ETIRA (European Toner and Inkjet Remanufacturers Association), during its 10th anniversary and the Focus on Europe conference—discussed how to fight off the clone cartridges coming into Europe along with OEM Lexmark; A NEW regulation to ensure fair play—NAPPS, a new industrial organization, was founded in Britain to supervise and regulate supplier practices so consumers can get a better printer and copier deal.

NEW means to start over, often taking the path less travelled. However, the fear of the unknown often holds some back in the past. Some, obsessed with past glory, assume that the current storms facing the industry will go, and the brilliant sunny days will return—as long as they wait. Some, used to failure, think that success is merely a fantasy, so they just muddle along as they have always done. So yes, our industry cannot move forward, because many are still stuck in the past.

It’s true the market is telling us: some old golden rules are not working anymore. So I ask you: why not try to blaze a trail? The industry is actually full of opportunities. Some have spotted and seized them. But opportunities are always accompanied by innovation and revolution. Are you ready to take this path less travelled?

Also, I want to mention the “Guide to Clones”—recently released by ETIRA at its 10th anniversary meetings. It is the first industrial guide to tell us what kind of toner cartridges may potentially infringe the intellectual property rights of the OEMs. In fact, in recent years, patent-infringing new cartridges have flooded the European market, also threatening the development of local remanufacturers.

ETIRA wants to educate remanufacturers not to sell clones through this new guide.

Let me say this: running after a short term gain does not have the long term interests for your company or even the whole industry. It is simply not worthwhile. There is no future for clones. (You can read more about the guide in our Industry Updates column).

So what about the coming month? I hope there will be more “NEW”s to bring hope and wow the industry.

Tony Lee Publisher & Managing Director

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

Directory of Print Testing Labs (Worldwide) This is a brief overview of some independent print test labs in two regional Directories: • United States • Europe and Asia.

www.recyclingtimes.com.cn

25

Aftermarket: Internet Drives Industry Growth Roger Asay, Publisher, Locator Magazine believes internet is the future of remanufacturing industry, because people are growing more comfortable with the internet as a convenient platform for buying and selling goods and services.

Just a Minute

04

What Does it Take to Get You Involved?

32

U.S. Patent Infringement Impact on Supplies Market

Money From Home

05

Protecting patents for supplies is going to remain a key part of the business model for many of the participants up and down the supply chain, including OEMs and aftermarket producers.

Longevity & Survival 35

Keeping Up

06

Who’s Happy?

OEM News Epson Stands Out in U.S. Printer Sales Growth

20 OKI Data, Toshiba to Jointly Develop Printers Industry Updates ETIRA Released Guide to Clones

09 AEG Changes Name to HITEC Imaging

Ricoh to Repay $4 million to State Agencies

22 Brother & Lexmark Join in ANZRP

Canon Adds 4,500 Employees at Batangas Plant

Cartridge World Launches a New Mobile Franchise

OKI Partners with IBM to Offer MPS

Clover Reports Over 76 Million Units Collected

10 Discover Imaging Products Ltd. Launches India Operations Collins Ink Announces New Program Against Kodak

12

Conference@2012: The Next Wave Printers, The Next Opportunity will be held on September 23 in Zhuhai Ink Technologies Simplifies Toner Cartridge Recycling

What is the best solution for the reman industry 13 Survey: when facing Canon's legal challenge over the use of gears on the drum?

Features Directory of Print Testing Labs (Worldwide)

25 Aftermarket: 32 Internet Drive Industry Growth 35 U.S. Patent Infringement Impact on Supplies Market

Product Release MSE Offers Remanufactured Brother TN-315 Cartridges

15 Future Graphics Releases Compatible Chips and OPC Drums

Profiles

38

Asay Media Network: A Growth Company

for Samsung Printers

DCI/JetTec Offers Reman HP Toner & Ink Cartridges

17 MMC Offers HP Compatible Ink Cartridges CET Offers New Printer Consumables

18

Erus Introduces Compatible Panasonic Cartridge

Tech Zone Remanufacturing the Xerox WorkCentre 3550 Toner

44 Cartridge

www.iRecyclingTimes.com

3

Recycling Times Magazine

Just a Minute

What Does it Take to Get You Involved?

By David Gibbons I was talking with Tricia Judge in Nice, France.

Tricia heads up the International Imaging Technology Council. She was ‘over the moon’ because scores or remanufacturers were signing up to the association—mostly in North America.

Then she told me why. Lexmark was pursuing remanufacturers, wanting to charge them for empty cartridges they had purchased from Canadian based GreenTec—up to 15 years ago!

They wanted the association to help defend and/or protect them in their hour of need.

We were then in the 10th anniversary meeting of ETIRA. Many hot issues being thrashed out.

You should have been there!

Vincent van Dijk, who heads up ETIRA, was also delighted with the record numbers attending the meeting. They came to deal with the onslaught of illegal cloned compatibles

4

www.iRecyclingTimes.com

coming into Europe. Among other issues.

Trade associations rely on loyal industry support to be sustainable as a peak authority.

And this industry needs strong trade associations if you are to grow your market share. But they can only be strong if you sign up and get actively involved. Do something today!

• Czech Republic Remanufactures Association www.crra.cz • Brazilian Cartridges’ Remanufacturers Association www.abreci.org.br

• International Imaging Technology Council www.i-itc.org

• Brazil’s South Region Cartridges’ Remanufacturers Association www.agreci.com.br

• European Toner & Inkjet Remanufacturers Association www.etira.org

• Association of Manufacturers of Consumable Materials (Russia) www.aprm.ru

• United Kingdom Cartridge Remanufacturers Association www.ukcra.com

• Zhuhai Printing Consumables Industry Association www.zh-pcia.com.cn

• Australasian Cartridge Remanufacturers Association www.acra.asn.au

• Professional Consumables Committee of China Computer Industry Association www.chinaccia.org.cn

Recycling Times Magazine

Money From Home

Longevity & Survival From September 23 to 25, an international crowd in excess of 10,000 people is expected to jam the spacious Zhuhai Airshow Centre to attend two simultaneous trade shows: CIFEX/ReMax Asia and iPRINT Expo 2012.

While touring more than 440 exhibits, they will update their knowledge of the industry, network with friends and associates, and witness demonstrations of the latest imaging hardware and consumable products.

A group of experts, market forecasters, industry analysts and hardware designers responsible for the ink jet and toner-based printers of the future will individually step up to the microphone to address the throng. They will offer their perspectives on the trends and directions this industry will likely take over the next 5 to 10 years.

That’s a tall order. How does one reconcile printer design, materials technology, the unpredictable economy and the patent and legal issues that plague our industry to emerge with a realistic vision of tomorrow? In assessing these complex factors and foretelling the future, can they keep a straight face and justify their conclusions?

Here are some of the wild cards to consider in the madness of drawing a meaningful conclusion from the various positive and negative parameters: • Will MemJet, this ultra-high speed, ink jet printing technology revolutionize high end, commercial and production printing in the new digital world? As of this moment, with printer OEMs signing up for licenses to use the new process, I believe it will.

• Will Lexmark successfully milk Greentec International’s sacred cow, its list of prospective defendants, going back 15 or more years? Will it cripple the reman industry with its demand for royalties on remanned Lexmark cartridges not first sold in the USA? I doubt that the answer is a simple Yes or No, but must defer to the legal eagles to answer this one.

• Will Canon drop the other shoe? After Canon winds up its lawsuits against some 34 defendants for infringing its twisted prism drum drive gear patents, what will be its next step? Will it then aim its legal guns on those who turned to other patented gears from Static Control Components, Future Graphics, Print-Rite, UTec and other possible parts suppliers? Assuming Canon files suit against those

who substitute such “non-infringing gears, alleging violation of the doctrine of permissible repair, will the reman industry then rebound with a vengeance by playing the “M” Card? If so, this could be the biggest legal showdown the industry has yet seen.

• Will mobile printers drive industry growth over the next decade? Is this new market segment destined for rapid expansion in the volume of printer hardware and consumables to satisfy a new niche market?

I’m inclined to think so, as the word Mobility is being used more frequently these days to describe the imaging world of tomorrow.

• Will consumer cartridge purchasing priorities shift from price first to quality first in emerging markets such as India, Southeast Asia, the Middle East and other regions? I believe it will, although the shift may occur faster in some regions than in others.

• Finally, where will the world economy take us over the next decade?

Among the certainties, barring some cataclysmic solar system event or a devastating world war, is that invention and innovation will continue to yield new products, new medicines and new solutions to classic problems faced by humanity. The net result should be the acceleration of business within and among nations and the rapid maturing of world markets. Some believe China will become the world’s largest economy, just slightly ahead of the USA. Along with China’s growth, economies currently emerging—notably Brazil, Columbia, India, Indonesia, the Middle East Russia, and South Africa— will add new markets and new consumers to the global demand for goods and services. These are all positive indicators for the future.

However, Stephen Bates, Managing Director of KPMG, the audit, tax and financial advisory firm, sees the life expectancy of a company shrinking. Hewlett-Packard, Kodak, Nokia and Nukote are examples.

“There’s no doubt that a key challenge for the next 10 years will involve the lifespan of companies. The markets are a lot less forgiving than they were and that will only accelerate.”

Considering the growing global challenges that lie ahead, adaptability, flexibility and long range planning will likely become key factors in a company’s prospects for longevity and survival.

Arthur S. Diamond Art Diamond is a 56-year veteran of the imaging industry. He is President of Diamond Research Corporation, a high technology research and consulting firm he formed in 1968 after research assignments with Eastman Kodak, Times Facsimile, Addressograph-Multigraph and Telautograph Corporation.

DRC serves clients through product formulation and development, private studies, strategic market planning, and expert witness testimony. Diamond is known internationally as an expert on dry toners and imaging media with 15 issued U.S. patents.

www.iRecyclingTimes.com

5

Recycling Times Magazine

Keeping Up

Who’s Happy?

The more that I talk to industry players the more it becomes apparent that many in the industry today are un-happy and uncertain about the future.

So let’s look at why so many companies are un-happy at the way the business is going and what lies ahead in the future.

To look forward into the future you have to look back to understand the past. So, we will start with the first decision every cartridge remanufacturer has had to make: Do I sell to local end users or do I concentrate on the retail channel, or can I do both?

Most choose one or the other, but I have met some who started off selling to retail only to diversify to direct sales when margin pressures became great.

Of course the industry started off in the early 1990’s and everyone tried to focus on direct sales. It was only later when retailers became aware of remanufactured cartridges and quality became consistent and reliable did the retail channel really start to take off. There are pro’s and con’s with both channels.

Remanufacturing cartridges and selling directly to end user customers are the most profitable ways to get your return on the investment you have made in the cartridge.

Since you do not have a retailer in the middle of you and your customer, you capture the retailers’ margin and satisfy the end user with a price that to him makes using remanufactured cartridges instead of new OEM originals worth his while. Problem is that it takes a long time to build your network of local customers. Now we are 20 plus years into the game where many remanufacturers have very profitable and stable businesses in supplying their remanufactured cartridges to their end user customers. They have built solid customer relationships over the years and have widened their service to include printer sales and printer maintenance. Always there for emergencies the remanufacturer

6

www.iRecyclingTimes.com

turns on the after sales customer service and makes sure that he collects all the used cartridges so he can remanufacture them again and again. With a steady stream of used cartridges at usually zero cost to the remanufacturer, he does not need to buy from cartridge brokers and pay exorbitant prices for cartridge empties. If he keeps his quality high the end user will come back to him for more.

This really is the best business model for remanufactured cartridges to get into the market place. You can be sure that the used OEM cartridge originated in the same country where you operate, so the OEM patent rights to it are exhausted and it becomes a legal cartridge empty eligible for remanufacturing. By owning the end user relationship you build a customer for life if you look after him the right way. You can also become his printing expert, helping him decide which printer is the best and of course you will advise him on the printers that you remanufacture the cartridges for.

By selling to him directly, the remanufacturer maximizes his cartridge profitability, collects the empty cartridges for recycling again and again and is able to offer additional services which he can invoice the customer for.

In many ways if the industry had concentrated on direct sales more, and in-direct retail sales less, the industry would be in much better shape today with more remanufacturers making their cartridges locally, employing staff locally and building their reputations locally. However that has not happened and this direct route to end users only account for 20% or so of the total remanufactured cartridge business.

I guess a state of happiness is subjective but most remanufacturers selling direct to end users are happy about their business model and are less concerned about cheap imported new built compatibles affecting their business.

The retail indirect channel accounts for about 80% of remanufactured cartridge sales, between

80 and 90 million laser cartridges a year in my estimation.

Selling through retailers or wholesalers or any other channel that is not direct has many pressures. The real problem is that so much volume goes through this channel that retails have become very powerful and hold all the aces.

• They own the end user relationship • They have big volumes with which to negotiate the very best prices • They collect the empty cartridges from the end user • They demand low purchase prices but make huge profits • They are the OEM’s largest customers also • They must make more money selling remanufactured cartridges than they make selling OEM originals or they will stop selling remanufactured cartridges • They have over 50,000 remanufacturers in the world to choose from for supply.

In practice the retailers are extremely demanding and relentless in looking for cheaper purchase prices. Only a minority can properly support the biggest retailers but this does not stop the retailers from using the lowest price quote to lever a better price from his incumbent supplier.

Retailers create enormous price pressure and remanufacturers in this business are always

Recycling Times Magazine

Keeping Up Of course making and selling new built compatibles that infringe OEM valid patents is wrong and the OEMs are keen to take legal action on infringers that they find. More legal action is needed to deter those involved.

This would be good for the genuine cartridge remanufacturing industry and remanufacturers alike.

So remanufacturers in the retail channel are not happy, fighting against lower and lower prices and cheap unlawful compatible new built cartridges. They need under acute pressure to lower the selling price of their cartridges to keep the business they have. Remanufacturers over the years, as the business pressures increased, have needed to look for low labor cost areas for production, sending the jobs overseas. Mexico, Thailand, Vietnam, Cambodia, China, Philippines, Indonesia are favorite low labor cost areas for remanufacturers to set up their operations. But the price pressure is such that this alone does not keep them competitive and profitable.

New built compatible cartridges create increased pressure as they are offered to retailers at extremely low prices everywhere.

Despite the risk of legal action being taken by the OEM against those that distribute and retail patent -infringing new built compatibles cartridges, many cannot resist the temptation to make more money and offer them to unsuspecting end users.

to constantly lower costs to keep competitive, but I see this as an opportunity rather than a problem.

Product supplies distributors are also finding life more difficult as prices continue to fall and operational costs go up. Many are un-happy at the current state of the business and have cut back or disappeared all together from the industr y. Even some that have 20 years records in supplying products to remanufacturers have disappeared. This is not good, but the industry today is very different

by default. As pressure from remanufacturers trickle down through the distributors and on to the vendors it’s where the buck, or should I say Yuan, stops. Many cannot see a bright future and no end to the pressure for them is in sight.

There are, it is said two types of people, those that see their cup half empty and those that see their cup half full. An optimist rather than a pessimist.

Despite so many “unhappy” with the business, I see a bright future ahead if we can work out how to do our business smarter in the future.

Look at all the positives: • Are happy end user customers going to stop wanting good quality remanufactured cartridges? I don’t think so. The industry will have a long term.

• Are happy retailers who make more money selling remanufactured cartridges going to stop wanting to make money? I don’t think so, so all we have to do is to get smarter to make sure it’s a profitable business.

• OEM’s are taking more legal action against new built cartridge infringers—that’s good.

• Worldwide cartridge demand is increasing year on year, set to become about 450

from the hey-day of fat profits to build big global infrastructures. Those that also manufacture their own products have a real advantage to survive.

Very unhappy are the product manufacturers who typically only make a single product line like toner, drums, blades and so on. These vendors are at the end of the supply chain and under greatest pressure living on very slim profit margins whilst become the industry banker,

million by 2015. That is a whole lot of opportunity—that’s good.

• Remanufactured color cartridge sales will increase as soon as reliability and consistent quality is achieved.

• Market price pressure will see the strongest survive and unfortunately the weakest fail, but that is a fact of life. So be strong.

My advice, for what it’s worth, is: get happy or get gone.

Steve Weedon Steve Weedon has had a varied career in the imaging industry since 1973. He has held senior management positions with such companies as, Nashua, Kalle Infotec, Katun Corp, and Gestetner. He commenced The Recycler Trade Magazine in 1992 and the first European cartridge remanufacturing trade show that same year. In 1994 Steve joined Static Control to head the European operations. After 18 years with Static Control, Steve has now moved on to be CEO of his own global imaging supplies company, Discover Imaging Products Limited.

www.iRecyclingTimes.com

7

Recycling Times Magazine

Industry Updates

ETIRA Released Guide to Clones ETIRA, short for European Toner & Inkjet Remanufacturers Association, has released “Guide to Clones” during its 10th anniversary meetings and the Focus on Europe conference in France.

The “Guide to Clones” is a document which aims to better educate remanufacturers what they should be aware of when trading non-OEM, new built cartridges in Europe.

According to ETIRA, the Europe market has seen an increase in patent-infringing new built cartridges in recent years, mostly from South East Asia.

In the guide, ETIRA lists several reasons why remanufacturers should not engage in trading new built, patent-infringing cartridges: • False labeling as “remanufactured” or

“new built” could mislead consumers • It infringes patents of the original equipment manufacturers (OEM) • Patent-infringing new built cartridges are bad for the environment • Patent-infringing new built cartridges kill local remanufacturing jobs • Patent-infringing new built cartridges are usually poorer in quality • Patent-infringing new built cartridges violate fair competition laws Lexmark was also represented at the meetings in France. During his presentation, Andrew Gardner, Lexmark’s legal officer, emphasized the dangers involved in trading patent-infringing cartridges. Vincent van Dijk, Secretary General of ETIRA said having original equipment manufacturers (OEMs) participate side by side with remanufacturers in the same event talking about the same issue is a novelty in the industry, given the fact that OEMs didn’t have good relationship with ETIRA 10 years ago. But now, all parties have moved on and are seeking ways they can work together.

Copies of the “Guide to Clones” can be obtained in many languages from ETIRA in hard copy or digital formats.

AEG Changes Name to HITEC Imaging After 40 years as AEG, the company announced it has a new name during industry meetings in Nice, France.

AEG Elektrofotografie, a subsidiar y of Hologic Group, headquartered in Warstein, Germany, is a leading supplier of photoconductor drum components. It has now changed its name to HITEC Imaging because the licensing agreement was due to expire with Electrolux, the owner of the brand.

The company believes the new name can better reflect the products they manufacture and supply.

HITEC Imaging has used their website

to thank their customers: “The AEG Photoconductor Team would like to thank all our customers for the years of cooperation and support you have given us. We are now looking forward to the pleasure of working with you under the new brand Hitec-Imaging in the future!”

The company also says, despite the new name change, the same commitment to business remains.

All former AEG offices in Warstein Germany, Zhuhai China, and Ohio USA, have changed to the new Hitec-Imaging branding soon after the announcement in France.

Cartridge World Launches a New Mobile Franchise Cartridge World, one of world’s largest printer cartridge specialty retailers, is offering mobile franchises, thereby providing a unique service for business customers. Introduced as Cartridge World Express by Cartridge World North America, the company says the new franchise creates “a flexible lifestyle for entrepreneurs who excel at business-to-business product and service sales”. The direct delivery approach also provides a new level of customer convenience, providing sales and service for printers, ink, toner and supplies.

The mobile business offers more than 400 ink and toner products, similar to Cartridge World’s 600 North American retail stores. The company claims that Cartridge World Express is a perfect opportunity for entrepreneurs who have an appetite to build a business in an $80 billion industry, “This opportunity requires a relatively low investment and is ideal for entrepreneurs who envision owning a fleet of delivery vans to service several communities or seek to open a brick and mortar at a later time.” said Frank Case, President of Cartridge World North America, adding “This new business opportunity will meet the needs of consumers in new locations across the country, while helping the company reach its annual growth projections.”

Cartridge World Express provides a valuable business proposition. The company claims it: • Sells cartridges at tremendous savings • Provides free delivery • Offers a 100% satisfaction guarantee with its products • Provides eco-friendly solutions with its remanufactured and recyclable products • Is locally owned and operated, and active in each community. www.iRecyclingTimes.com

9

Recycling Times Magazine

Industry Updates

Discover Imaging Products Ltd. Launches India Operations

Clover Reports Over 76 Million Units Collected Clover issued its third annual sustainability report. The document examines the environmental impact of Clover ’s global collections, remanufacturing, and recycling operations as well as its key social impacts.

According to the report, Clover collected over 76 million units including cartridges, cell phones, small electronics and printer components last year and kept over 56 million pounds of material from landfill and reused 33.6 million pounds of material. The ink cartridges made by Clover contain 97% post-consumer recycled content and toner cartridges contain 90% post-consumer recycled content.

Jim Cerkleski, CEO of Clover says: “By collecting more, we were able to ensure 56 million pounds of material have been kept from landfill. By adding facilities in new geographic locations, we reduced the distance traveled by our collections which significantly lessened the carbon impact of that movement.

By growing our operations in the consumer electronics space, we were able to provide an environmentally responsible solution for potentially hazardous waste products and the assurance that our customer’s personal data would be safely managed.”

For more information, please visit: http:// www.clovertech.com/flashpages/sustainability_ report.

10

www.iRecyclingTimes.com

Discover Imaging Products Limited announced the launch of its India Operations effective as of August 2, 2012. The new company is headed by Mr. Steve Weedon, a 38 year veteran of the imaging industry.

CEO Weedon is joined by several similar visionary team members.

The company is a consortium of 150 manufacturers of high quality products for the cartridge remanufacturing industry.

Discover Imaging Products is a global company which has redefined the imaging supplies distribution channel for toners, OPCs, blades, chips, rollers, and empty cartridge products for the laser, inkjet and copier aftermarket. “In fact, we have turned it on its head, removing all the unnecessary addon costs that exist throughout the traditional supply chain, that always become part of the product cost that is passed on in the selling price. We will be supplying all the high quality imaging products you want and at the prices you need.”

Discover Imaging further explained, “We want our customers to prosper for the long term. We want to deliver our products

to our customers at the lowest possible price to make them more competitive and profitable in order to succeed. We will do this everywhere and India is one of the first few markets where we start serving our customers. The Indian market is complex yet prospective and ripe for growth. Our statement is Supplying the products you want–at the prices you need. We are here to help Indian and other companies in the region to succeed.”

Mr. Dhruv Mahajan has joined Discover I m a g i n g a s M a r ke t i n g a n d B u s i n e s s Development Manager for the Indian and South East Asian markets. Dhruv will report to Mr Zafar Shah Syed who is the new firm’s Regional Business Development Manager.

Contact information: dhruvm@discoverimaging.com, or zssyed@discoverimaging.com Internet: www.discoverimaging.com USA Tel: +1 919 379 1488 Europe Tel: +44 1342 841936 India And South East Asia Tel: +91 9873474349, or +44 118 956 1604

Collins Ink Announces New Program Against Kodak Inkjet ink manufacturer Collins Ink (Cincinnati, OH) has created a program to deal with Kodak’s policy of tying inks to print heads. The program was designed to assist Collins Ink customers that Kodak Versamark has targeted with punitive print head refurbishing surcharges.

Kodak recently released a policy which

ties the prices of print head refurbishment to the ink being used. Collins’ website says it appears that Kodak wants to force Collins Ink out of a market it has operated in for over 20 years.

In addition, Collins has been moving forward with solutions that should help alleviate customers concerns about what will happen if Kodak should fail to emerge from bankruptcy.

Recycling Times Magazine

Industry Updates

Conference@2012: The Next Wave Printers, The Next Opportunity will be held on September 23 in Zhuhai Conference@2012: The Next Wave Printers, The Next Opportunity will be held on September 23 at the Zhuhai Holiday Inn, organized by Recycling Times Media Corporation. It is expected that over 200 industry leaders from many countries and regions will attend the conference.

Some 20-year old imaging and printing patents are due to expire and the print market is expanding year by year. Some companies have worked hard to develop new printing technologies, foster the personalized print market, capture more of the traditional print market or give birth to some new supplies opportunities. It is also a time when some Asian companies have developed, manufactured and started shipping their own printers. Their presence could change the print market, and cause a revolution in the print consumables industry.

If you are one of those companies who have been around a while, you must be asking: what is the direction of technology development is taking? Where are the new opportunities? Which marketing strategies should be used? What new improvements will they create for the industry?

Listen and ask questions of the experts and seize

the new printing era opportunities to maximize customer needs while maximizing your profits.

Currently 6 speakers have presentations on the hot issues in the industry: • Andrew Gardner, Worldwide Brand Protection Manager, Lexmark International • Subject: An OEM perspective on compatible clone cartridges • Dr. Edul N. Dalal, Research Fellow, Xerox Corporation Subject: The Growth of Color Printing Based on Digital Imaging Technology • Dr. Xiaoying Rong, Associate Professor, Graphic Communication Department, California Polytechnic State University Subject: The Transition from Analog to Digital Printing • Jan de Kesel, Managing Director, In-Map Subject: Transform your leads into sales in an MPS approach: getting the customer involved and wanting more • Art Diamond, President, Diamond Research Corporation Subject: Cartridge Remanufacturing for the New Wave of Printers • Dr. Bobo Wang, President, Aetas Technology (ZhenJiang) Co., Ltd.

Additional speakers will be announced soon.

And there’s more… CIFEX|RemaxAsia Expo, the world’s largest computer printing industry show, and iPrint (China) Expo, the China’s first digital press and commercial printing show, will be held on September 24-26, at Zhuhai Airshow Center. It is estimated there will be 15,000 trade visitors from more than 81 countries and regions and more than 450 exhibits over the three days. For more information, please visit www.iRecyclingTimes.com or www.iPrintExpo. com For video clips, photos or a media kit please contact: Jessica Yin +86 756 3919264 Jessica.Yin@iRecyclingTimes.com

Ink Technologies Simplifies Toner Cartridge Recycling Printer cartridge retailer Ink Technologies has introduced a new toner cartridge recycling program to help reduce environmental impact.

The company provides a web form for customers to fill in their details, after which they

12

www.iRecyclingTimes.com

will be sent a shipping return tag in the mail.

This will make the process as simple as possible, according to the company.

Each toner cartridge contains 3 pounds of manufactured material and uses 3 quarts of oil to produce. These cartridges are composed mainly of plastic and metal, resources which incur a considerable environmental impact as they are mined, processed, and discarded in landfills.

Plastic components will take at least 1,000 years to degrade in landfills. Most toner cartridges can be recycled up to 4 times, saving

9 pounds of virgin resources compared to manufacturing new ones.

“As a company, we are committed to helping our customers reduce their carbon footprint as they strive to live environmentally sustainable lives,” commented Mike Davis, CEO of Ink Technologies, “We are excited to be providing this new service and hope our customers will take advantage of the opportunity to do their part in combating the negative consequences of wasted resources.”

For more information: please visit http://www.inktechnologies.com.

Recycling Times Magazine

Industry Updates

Survey

ult Poll Res

What is the best solution for the reman industry when facing Canon's legal challenge over the use of gears on the drum?

On January 23, 2012, Canon filed complaints with the US International Trade Commission requesting that the ITC conduct an investigation under section 337 of the Tariff Act of 1930, regarding certain competitive toner cartridges and components Canon alleged violated two of its patents. This was a challenge to cartridge remanufacturers as an estimated 60% to 70% of all Canon and HP laser cartridges use these drum drive gears.

In last edition of Recycling Times Magazine, both Chinese and English versions, we have published an article— “Reman Industry Faces Canon Challenge”, offering five solutions to this one of the most concerned questions in the industry.

We conducted an opinion poll survey on this the aforesaid issue via our websites and social network. Here is the result.

1. Reuse the original Canon's "twisted polygonal prism" gears and couplings?

We constantly conduct surveys on the hottest industry issues.

Please don’t hesitate to let us know your opinions by clicking into our websites, Facebook, Weibo and Twitter. Or you can email to us at doris.huang@irecyclingtimes.com.

2. Replace the Canon part with a new patented, non-twisted, non-slanted coupling?

3. Support the argument that Canon exhausted its patent rights at the time of its first sale?

4. Argue that the law permits the repair and/pr replacement of worn out drum gears?

5. Reach a settlement with Canon?

www.iRecyclingTimes.com

13

Recycling Times Magazine

Product Release

MSE Offers Remanufactured Brother TN-315 Cartridges Micro Solutions Enterprises (MSE) the largest US-based cartridge remanufacturer has just launched remanufactured Brother TN-315 cartridges. MSE claims their reman cartridges are intelligently re-engineered because they use patented technologies, proprietary processes, and stringent testing protocols during remanufacture.

The Brother TN-315 replacement cartridges can be used in Brother HL-4150 printers as well as the popular HL-4040 desktop color printers.

Released in October 2012, Brother’s HL-4150 series printers target home users, SOHOs and micro SMBs (small and medium size businesses).

Print speed is up to 30 pages per minute (ppm) with 2400 x 600dpi image resolution. According

to Brother, the TN-315 cartridge requires a separate drum unit (DR-310) that yields 25,000 pages.

MSE says it is committed to bolstering its line of advanced color technology cartridges for printers which do not use Canon engines.

“The market has struggled with Brother color technology,” says Jesus Gonzalez with Research and Development at MSE Global. “We view this as an opportunity to set ourselves apart.

We truly believe that our replacement color cartridges for Brother are destined to become MSE signature products that stand side-by-side with the OEM.” According to MSE, the market’s most exhaustive testing and QC protocols are used to ensure

About MSE MSE is one of the world’s largest remanufacturers with U.S. facilities cen tered in Van Nuys, California. The company is known as a leading-edge innovator in the marketplace.

MSE pioneered the process of Intelligent ReEngineering, to achieve the market’s best alternative to high-cost OEM consumables. MSE has sales and distribution facilities in Canada, Europe (UK and the Netherlands), Israel, Brazil, California, and Pennsylvania.

Cost per page (US cent)

MSE Part NO

OEM Part NO

MSE Yield

MSE Brand (Black) HY

02-03-41016

TN-315BK

6,000

Private Label Brand (Black) HY

02-03-41004

TN-315BK

MSE Brand (Cyan) HY

02-03-41016

Private Label Brand (Cyan) HY

Product

that its color products are the truest alternative to the OEM. Details concerning the new cartridges are given in the following table.

OEM Yield MSE

OEM

6,000

2.2

2.7

6,000

6,000

2.2

2.7

TN-315C

3,500

3,500

10.2

12.9

02-03-41004

TN-315C

3,500

3,500

10.2

12.9

MSE Brand (Yellow) HY

02-03-41016

TN-315Y

3,500

3,500

10.2

12.9

Private Label Brand (Yellow) HY

02-03-41004

TN-315Y

3,500

3,500

10.2

12.9

MSE Brand (Magenta) HY

02-03-41016

TN-315M

3,500

3,500

10.2

12.9

Private Label Brand (Magenta) HY

02-03-41004

TN-315M

3,500

3,500

10.2

12.9

Future Graphics Releases Compatible Chips and OPC Drums for Samsung Printers Future Graphics, one of the world’s largest aftermarket suppliers of parts, consumables and components, is now offering compatible chips and OPC drums for Samsung printers.

The company claims these newly-launched

consumables can be used in Samsung ML1660/1665, SCX-3200/3205 and ML-1865 cartridges.

The Samsung ML-1660 is a tiny A4 monochrome laser printer ideal for home

users, SOHOs and SMBs. It can print 16 pages per minute in black and white with an image resolution up to 1200x1200 dpi.

For more information, please visit: http://www.fgimaging.com. www.iRecyclingTimes.com

15

Recycling Times Magazine

Product Release

CET Offers New Printer Consumables DCI/JetTec Offers Reman HP Toner & Ink Cartridges Cartridge remanufacturer DCI/ JetTec (Lincolnshire, UK) now offers reman toner cartridges for HP CE310 printers as well as remanufactured ink cartridges for HP 364X machines. The 4 new DCI/JetTec products for HP CE310 Series color printers are detailed in the table below.

DCI/ JetTec claims these toners offer OEM-equivalent print quality and overall performance. DCI/ JetTec collects spent cartridges through its own recycling program.

Every toner is tested before leaving the factory and is covered by a 100%, 3 year quality guarantee.

DCI/ JetTec has manufactured toners and inks for Brother, Canon, Dell, Epson, HP,

Kyocera, Lexmark, OKI, Samsung and Xerox.

According to DCI/Jet Tec, the new HP toners are expected to “become a top selling product within their extensive range”.

The remanufactured cartridges are available in four colors either individually packed, or in a three color multipack.

For more information, please contact DCI/ JetTec by email at: sales@jettec.co.uk OEM Part NO

Jet Tec

QRN

HP CE310A

101H031001

H310

HP CE311A

101H031102

H311

HP CE312A

101H031204

H312

HP CE313A

101H031303

H313

Chinese printer supplier CET (China Eternal Copiers Technology Co., Ltd.) announced the world’s first compatible drum unit for use in Canon R Advance C5030/5035/5045/5051 copiers. CET also released a line of compatible spare parts and consumables.

Toner cartridges and dr um units for use in CANON iRC4080/4580/5180 digital copier are now in stock. In addition, the company introduced a series of chips for use in Minolta Bizhub C220/280/360, Bizhub C350, Bizhub C450, Bizhub C352, iR Advance C2020/2025/2030/2035 and other machines.

Also included are compatible spare parts for use in Ricoh Aficio 1515 and CANON iR Advance 6055/6065/6075, including developer gear kits and upper fuser rollers.

Please visit: www.ChinaEternal.com

MMC Offers HP Compatible Ink Cartridges China’s imaging consumable supplier, Much More Color (MMC), is now offering compatible ink cartridges for HP GH-00862 series printers.

The new compatible cartridges deliver the same print quality and same page yield as OEMs, MMC Products No

claims. All ink cartridges are equipped with smart chips.

Details about these ink cartridges are shown in the table below. MMC also provides a comprehensive guide to make installation easier

OEM No

Ink Volume

GH-00862XLBK (CB321Z)

33 ml

HP 862XLBK(CB321Z)

GH-00862XLBK (CN684Z)

HP 862XLBK(CN684Z) HP 862BK(CB316Z)

20 ml

GH-00862XLC

HP 862XLC(CB323Z) HP 862C(CB318Z)

13 ml

GH-00862XLM

HP 862XLM(CB324Z) HP 862M(CB319Z)

13 ml

GH-00862XLY

HP 862XLY(CB325Z) HP 862Y(CB320Z)

13 ml

GH-00862XLPBK

HP 62XLPBK(CB322Z) HP62PBK(CB317Z)

13 ml

for its customers.

For more information, please contact MMC at (86)0756-8861233, or send an email to: mmc@mmcinkjet.com

Printer No HP Photosmart B8558/C5388/C6388/ D5468/B110a HP Photosmart Plus B209a/B210a HP Photosmart Premium C309a/C309g/ C310a/C410d

HP Photosmart 5510/6510/7510/B8558/ C5388/C6388/D5468/B110a HP Photosmart Plus B209a/B210a HP Photosmart Premium C309a/C309g/ C310a/C410d

HP Photosmart 7510/B8558/C5388/C6388/D5468 HP Photosmart Premium C309a/C309g/ C310a/C410d www.iRecyclingTimes.com

17

Recycling Times Magazine

Product Release

Erus Introduces Compatible Panasonic Cartridge China-based Erus International Development Co., Ltd. (Erus) introduces compatible black toner cartridge for Panasonic. With 2,500 page yield, these cartridges can be used for Panasonic KX-MB1500 and KX-MB1520 Laser Fax Machine.

Product Description 1) Model: Black Toner Cartridge Panasonic KX-FAT407 2) Suitable for use in Panasonic KX-MB1500 and KX-MB1520 Laser Fax Machine 3) Yield about 2500 pages, at ISO/IEC 19752 standard 4) 100% pre-tested before delivery 5) Compatible brand new black toner cartridge 6) Airbag+color box packing 7) Certifications: ISO 14001:2004 Model

Apperance

Powder Weight

Wa r r a n t y Period

Inferior Rate

Replacement

Color

Suitable for

KX-FAT407

Brand new

120 Gram

12 months

1%

100%

Black

KX-MB 1500 KX-MB 1520

About Erus Erus International Development Co., Ltd. specializes in production, development and

18

www.iRecyclingTimes.com

sale of printer and copier consumables and parts for HP, Canon, Samsung, Epson, Brother, Xerox, Ricoh, Panasonic, Minolta, OKI, Kyocera,

Sharp and Lexmark products. The company was established in Shenzhen in 2002 with a factory occupying more than 6000 square meters.

Recycling Times Magazine

OEM News

Epson Stands Out in U.S. Printer Sales Growth According to an IDC report, Epson stands out with a 17.5% growth in printer shipments, reaching an 11.2% share of the U.S. Hardcopy Peripherals Market in the first Quarter of 2012.

Epson successfully increased printer shipments by 92,186 units over first Quarter 2011 results in the Year on Year ( YOY ) period.

It was the only OEM that have had increase in printer shipments, and thus grabbed another 2.7% market share. Overall shipments in the U.S. declined 11.34% YOY to 5,521,180 units

in the same first Quarter period of 2012, This is not a large enough jump to overtake Canon and become the second largest OEM in the U.S. market, but it did narrow the gap from 5% to 1.6%.

However, a decrease in shipments does not necessarily result in loss of market share.

Kodak’s unit shipments decreased 2.24%, but due to the economic recession, it still increased its market share from 5.0% to 5.5%. Similarly, Brother’s shipments declined 11.95%, but it still

managed to maintain its 5.8% market share in this Quarter.

Unfortunately, HP and Canon failed to defend their market share.

Canon’s shipments went down from 841,099 to 704,521, generating a 16.24% YOY decrease, the strongest decline among all OEMs, and a loss of 0.7% market share.

HP’s 15.19% decline in shipments also decreased its market share, in this case by 2.4%, bringing it down to 50.9%.

OKI Data, Toshiba to Jointly Develop Printers

Ricoh to Repay $4 million to State Agencies

OKI Data has signed an agreement with Toshiba to develop multifunctional printers (MFPs) that will target the global market.

According to the agreement, the two companies will jointly develop a competitive A4-size MFP, ideal for Managed Print Services (MPS). Toshiba can use OKI LED printheads in its printer solutions. OKI will also draw on Toshiba Tec’s Open Platform technology to provide a wide range of Managed Print Service solutions.

Two key provisions of the basic Joint Development Agreement are: • Joint Product Development - The two companies will jointly develop a competitive A4-size MFP, ideal for Managed Print Services (MPS). OKI Data’s compact electrophotographic unit will incorporate controllers provided by Toshiba Tec. • Reciprocal Supply of Core Technologies - Toshiba Tec will develop compact, high-precision MFPs with digital LED print heads manufactured by OKI Data.

Ricoh has agreed to repay State governmental agencies $4 million for overcharges on copier services provided since 2007.

According to Steve Valandra , Spokesman for the State Department of Enterprise Services (DES), overpayment is an ongoing issue with Ricoh. “Once they were made aware of it, they took care of it,” he said.

Ricoh Americas Corp. had paid for the review of charges by Pricewaterhouse Coopers LLP after the issue was raised to the Attorney General in 2009. However, the problem continued to exist.. Some agencies signed a state contract for copier services with Ricoh. But they have been overpaying for these services since 2007.

Fortunately, they can now have their money back.

The $17 million per-year contract between Ricoh and the State expires in April. DES has issued a new contract with Office Depot for paper and Office Pal for toner and ink products.

Also, House Bill 2452 has been passed to further strengthen state purchasing through DES and the selection of contractors.

20

www.iRecyclingTimes.com

Toshiba Tec’s full-color e-STUDIO 2050C A3 MFP (announced for the Japanese market) uses OKI Data LED print heads, allowing it to achieve unprecedented compact dimensions and dramatically lower power requirements. OKI Data will also draw on Toshiba Tec’s Open Platform technology to provide a wide range of MPS solutions.

OKI says it plans to double sales of MPS contracts based on its wide range of high-speed MFP offerings. Toshiba Tec will strengthen its sales by adding its own developed A4 size products to its product portfolio. In the printer market, the demand for services, like MPS, which can improve productivity and save money, is growing.

Recycling Times Magazine

OEM News

OKI Partners with IBM to Offer MPS

Brother & Lexmark Join in ANZRP Printer vendors Brother and Lexmark have joined in the Australia/New Zealand Recycling Platform (ANZRP).

The two companies will be compliant with the federal government’s new National Television and Computer Recycling Scheme, which aims at reducing the environmental impact of printer and multifunction printer (MFP) hardware in Australia.

Brother will provide a free e-waste recycling service for Australian consumers, including printer supplies. This company also supports the Cartridges 4 Planet Ark recycling program, which offers a free national recycling program for consumers in order to divert waste from landfill.

The products in the recycling list include waste televisions, computers, printers and computer products. Consumers and small businesses can drop these items off at certain access points, free of charge.

Brother’s General Manager for Products

and Marketing, Andy O’Donnell said, “Brother’s decision to join ANZRP forms part of its ongoing strategy and commitment to the environment and the community. As an industry led service we believe ANZRP offers the best recycling outcome for the environment, and is the ideal means to achieve a permanent solution to Australia’s e-waste challenge. A free service that’s easily accessible to all consumers is an important step forward for the community.”

Carmel Mosser, General Manager, Lexmark Australia and New Zealand, said, “We are proud to be a founding member of ANZRP because we take very seriously our commitment to sustainability and the environment. The National Television and Computer Recycling Scheme is just another example of that commitment and we look forward to working with ANZRP and alongside our partners and industry peers to continue this journey.”

OKI Data (UK) is partnering with IBM to offer managed print services (MPS) to government departments and agencies. The two companies will jointly provide MPS for the Department of Environment Food and Rural Affairs (DEFRA).

IBM had an existing contract with DEFRA that covers providing IT services and solutions.

Tasked by DEFRA to help it save costs, IBM recommended a move away from the ad-hoc procurement of print devices and consumables towards the delivery of a more efficient MPS solution.

IBM issued a tender for a solution provider to deliver the service and after a period of consultation selected OKI (UK) as its partner.

In total, the printer fleet at DEFRA was reduced from 1,384 to 548 devices, representing a significant saving in hardware, consumables and running costs. There have also been significant environmental benefits, with DEFRA estimating that it has been able to achieve CO2 savings of 47 per cent so far.

As Chris Jackson, IBM’s Senior Delivery Project Executive, explains, “OKI is an experienced printing solutions manufacturer and MPS provider with expertise in managing large projects. We had confidence it could provide all the required services and manage the printing solutions element of the project accordingly.”

Canon Adds 4,500 Employees at Batangas Plant Canon’s new laser printer manufacturing plant in Batangas, Philippines will begin operation in 2013 and will add 4,500 employees by the end of that year.

Unlike HP, which will terminate 27,000 staff members worldwide by the end of 2014, Canon will add more employees to its Philippine staff.

On July 3, during Canon Philippines’ 15th Anniversary celebration, Alan Chng, President of Canon Marketing (Philippines) Inc., announced: the new laser printer manufacturing facility in

22

www.iRecyclingTimes.com

Batangas, Philippines will start-up in April, 2013.

By the end of 2013, the plant’s workforce will number 6,000 employees, up from the current 1,500 workers.

Canon is quite optimistic about the laser printer market in the Philippines and believes that the future of Canon (Philippines) is quite promising. Canon has three business units in the Philippines.

They are: • Canon Marketing Philippines Inc.;

• Canon Information Technologies; • Canon Business Machines. Each of these units employs 500 Filipinos.

Canon Japan has invested P20-billion in this 22-hectare laser printer manufacturing facility in Batangas. Once the export-oriented printer manufacturing project is in full commercial operation, it will create altogether 30,000 direct or indirect jobs, according to Philippine Economic Zone Authority Director-General Lilia B. De Lima.

Recycling Times Magazine

Features

Directory of Print Testing Labs (Worldwide)

by Art Diamond, Senior Consulting Editor Following is a brief overview of each of the independent print test labs shown in our two regional Directories: United States; Europe and Asia.

Battelle Memorial Institute Committed to science and technology for the greater good, Battelle is a global research and development organization creating value through innovation for our clients, the nation and the world.

Battelle Memorial Institute is the world’s largest nonprofit research and development organization, with over 20,000 employees at more than 100 locations globally. Based in Columbus, Ohio, Battelle is a 501(c)(3) charitable trust founded in 1929 on industrialist-turned-researcher Gordon Battelle’s vision that business and scientific interests can go hand-in-hand as forces for positive change.

Across diverse markets and around the world, Battelle is working hand-in-hand with leading commercial enterprises and government agencies to solve today's complex energy, environmental and materials challenges. It combines unparalleled technical breadth with best-in-class facilities to deliver objective data, solve critical problems and advance cleantech solutions that promote economic growth and improve the environment. As a global leader in research and development, Battelle can help you solve your urgent challenges in innovative ways. Put the people of Battelle to work for you, today.

Buyers Laboratory LLC (BLI) Since 1961, Buyers Laboratory LLC (BLI), which is an ISO 17025:2005 certified and EPA-recognized test lab, has been the leading global independent office-equipment test lab. In addition to publishing the industry's most comprehensive and accurate test reports on hundreds of document imaging devices annually, each representing months of exhaustive hands-on testing in BLI's US and UK laboratories, the company has been the leading source for extensive performance testing on imaging media and consumables, including fusers, drums, toner, ink sticks and inkjet print cartridges.

While printers and MFPs are tested to BLI’s proprietary standards, BLI annually tests thousands of OEM and thirdparty print cartridges for yield, image quality and reliability performance, per its own methods and in accordance with the following ISO standards: • ISO/IEC: 19752 Method for determination of toner cartridge yield for monochromatic printers and multifunction devices • ISO/IEC 19798: Method for determination of toner cartridge yield for color printers and multifunctional devices • ISO/IEC 24711: Method for determination of ink cartridge yield for color inkjet printers and multifunctional devices BLI is completely independent in its testing processes and subsequent reporting, and has a long-standing reputation for being the industry’s most trustworthy and complete source www.iRecyclingTimes.com

25

Recycling Times Magazine

Features for quality testing services. In addition to making its public reports available via its online bliQ information service, BLI’s test services are available on a private for-hire basis for clients who wish to engage BLI’s expertise for confidential tests, including competitive face-offs, performance certification and quality assurance evaluations.

For more information on BLI’s private test services.

Please call (201) 488-0404, e-mail info@buyerslab.com, or visit www.buyerslab.com.

National Quality Supervising Test Center for Printing & Office Automation Consumables (NTCCOA) The National Quality Supervising Test Center for Consumables of Printing and Office Automation (NTCCOA) is a national statutory inspection organization which offers various services, including product testing, analysis and evaluation for consumables of printer, ink, paper and presswork; quality supervision; intermediation; formulation and revision of various industry standards; new technology research and development and technical training. It’s the only national level test lab for consumables of printing and office automation in People’s Republic of China.

The Center fully implements the principle of “Impartiality, Science, Integrity, Quality and Efficiency” throughout all its testing operations. The endeavor of maintaining itself as an impartial and authoritative third party test lab prevails.

By massive investment in upgrading its test equipment, the center can now conduct tests under advanced international/ foreign standards, including ISO (International Standardization Organization), DIN (Deutsches Institut für Normung), ASTM (American Society for Testing Materials), and other national standards.

The NTCCOA is currently planning to expand into another base facility at Nanping Industrial Park in Zhuhai, China. The new base is expected to cover an area of 16646 m² (179,000 ft2), with investment reaching RMB 57 million (about USD 9 million).

QualityLogic Printers and MFPs are part of a mature market and, as such, are subject to the price, feature and schedule pressures this maturity brings. Consumers are increasingly sophisticated and demand more feature-rich products at lower prices and lower costs of ownership. That makes it critical to get new products, with new features and technologies to market fast while keeping development costs to a minimum.

26

www.iRecyclingTimes.com

QualityLogic can help you meet these goals in a number of ways: • Ensure the quality of your products with QualityLogic Test Tools that test the interoperability, performance, and conformance of industry-standard protocols and Testing Services that cover all facets of printer and MFP functionality, compatibility, interoperability, performance and usability, as well as competitive analysis and consumables reliability and yield.

• Increase your testing efficiency with QualityLogic’s automation and analysis solution • Partner with QualityLogic to promote the competitive strengths of your product by using test results from QualityLogic products and services.

Rochester Institute of Technology (RIT) RIT’s Printing Applications and Imaging Products Laboratory is an independent university based, center of excellence enabling sustainable print/imaging from concept through multiple life cycles and end of life.

Guided by its mission to increase global competitiveness along the graphic media & imaging supply chain, RIT provides 3rd party, independent validation, knowledge transfer, applied research and development, system level understanding and validation and assurance testing services.

We have 80 scientists, engineers, and application specialists, with expertise in print/imaging applications, imaging & color science, sustainable design & manufacturing, remanufacturing, and packaging.

RIT has world class laboratories with state-of-the-art digital printing and imaging platforms deployed in SOHO, commercial, publishing, and packaging markets, from leading OEM’S, including HP, Kodak, Xerox, Epson, Lexmark, Canon, Konica-Minolta, and Sharp to name a few.

Laboratories are equipped with instrumentation used to assess image & color quality, durability, permanence, cartridge yield, life cycle assessment (LCA), and environmental impact. These labs support manufacturing process audits and certification, media certification programs, product and materials quality assurance auditing, competitive benchmarking, and assistance with product development, reliability, & prototype evaluation.

During the past decade, RIT has worked with hundreds of companies from diverse business sectors to implement and improve sustainable product designs. RIT participates in industry standards development such as the EPEAT committee for creating standards for the Environmental Assessment of

visit www.buyerslab.com

Recycling Times Magazine

Features Imaging Equipment. RIT staff conducts projects such as LCA, SLCA, and sustainable metric development.

Spencerlab Digital Color Laboratory Through more than two decades of industry service, Spencer & Associates Publishing, Ltd. has earned a premier reputation for its integrity and expertise in evaluating digital color imaging and printing. Its independent test division, the SpencerLab Digital Color Laboratory, is internationally recognized as a leader in unbiased, third-party research and comparative analysis of digital imaging and printing system performance. SpencerLab provides leadership in quantitative and qualitative comparisons, benchmarking key performance metrics of digital printing systems in all technology classes, from desktop printers to digital color presses and providing research and evaluation services, compliance certifications, benchmark test software/hardware, and focus group management.

Industry leaders rely on SpencerLab to provide fully compliant ISO/IEC cartridge yield testing services, as well as its premier range of proprietary yield test methodologies. We offer specialized programs that compare consumable yield and associated Cost-per-Print for printing devices of varying technologies: inkjet, solid inkjet, laser, LED, dye sublimation, and more. Its independent certification services add credibility and impact to cartridge performance claims.

Leading vendors and firms for whom printing is missionPrint Testing Labs (United States) Battelle Memorial Institute Dr. Bhima Vijayendran, Vice President Business Development 655 West Broadway, Suite 1420 San Diego, CA 92101 Phone: +1 619.574.4821 Mobile: +1 619.857.9974 eMail: vijayenb@battelle.org Website: www.battelle.org Buyers Laboratory LLC (BLI) Mr. Anthony Polifrone, Managing Director 20 Railroad Avenue, Hackensack, NJ 07601 Phone: +1 201.488.0404 eMail: TonyP@buyerslab.com Website: www.buyerslab.com

critical rely upon SpencerLab to provide strategic support and benchmarking of Print Quality, Ink/Toner Yield and Cost-perPrint, Throughput, Availability and Utilization, Reliability and Usability for ink- and toner-based as well as other printing technologies. Corporate users rely upon SpencerLab for guidance in print system, including consumable, acquisition and usage optimization.

Toner Cartridge Testing Lab Toner Cartridge Testing Lab was founded in June, 2005, with the goal of providing detailed, unbiased, evaluations of Laser Toner and Inkjet Cartridges, on a timely basis, at a reasonable cost. Its services are designed to help determine the quality of remanufactured Laser Toner and Inkjet Cartridges in comparison to the OEM, as well as evaluating the causes for returns.

With over 40 years combined experience in laser toner remanufacturing business both in the US and abroad, its staff is ready to resolve any and all problems, no matter how obscure. Due to the unbiased nature of this third party testing lab, a proof source can be provided to both customers and potential customers, documenting the quality and yield of each cartridge.

(Note: If you believe your independent laboratory should be included in this Directory, please contact Art Diamond at 805.640.7177, or email: drc@west.net. If qualified, there is no charge for this listing.)

QualityLogic Jim Zuber, Chief Technical Officer 5401 Tech Circle Moorpark, CA 93021 Phone: +1 805.531.9030 eMail: jzuber@qualitylogic.com Website: www.qualitylogic.com Rochester Institute of Technology Mr. Bill Garno, Director Printing Applications Laboratory 66 Lomb Memorial Drive Rochester, NY 14623-5603 Phone: +1 585.475.2609 eMail: wtgter@rit.edu Website: www.printlab.rit.edu SpencerLab Digital Color Laboratory Catherine Fiasconaro, Vice President Operations Director www.iRecyclingTimes.com

29

Recycling Times Magazine

Features

Three Giffard Way Melville, NY 11747 Phone:+1 631.367.6655 eMail: fiasconaro@spencer.com Website: www.spencerlab.com Toner Cartridge Testing Lab Mr. Thomas Kelly, President 10390 Rockingham Drive, Sacramento, CA 95827 Phone: +1 916.857.1561 eMail: tom@tctlab.com Website: www.tctlab.com Print Testing Labs (Asia & Europe) BLI Europe BLI INTERNATIONAL (UK) LTD. Unit 1, Station Industrial Estate Oxford Road, Wokingham Berkshire, RG41 2YQ UNITED KINGDOM Phone: +44 (0) 118.977.2000 Fax: +44 (0) 118.977.2888

30

www.iRecyclingTimes.com

eMail: david.sweetnam@buyerslab.com Website: www.buyerslab.com BLI Asia BLI INTERNATIONAL LTD. Room 303, 3rd Floor St. George’s Building 2 Ice House Street Central, HONG KONG Phone: +852.8200.1176 Fax: +44 (0) 118.977.2888 eMail: john.donnelly@buyerslab.com Website: www.buyerslab.com National Quality Supervising Test Center For Consumables Of Printing And Office Automation (NTCCOA) 133 Renmin Xi Road Zhuhai Guangdong 519000 CHINA Phone: +86(0)756.266.1292 Fax: +86(0)756.266.1292 eMail: ntccoa@163.com Website: www.ntccoa.cn

Recycling Times Magazine

Features

Aftermarket: Internet Drives Industry Growth

by Roger Asay, Publisher, Locator Magazine The Past Although used copiers have historically driven the office equipment market, more recently the expansion of quality used printers is beginning to push growth in that sector. Many of our customers recycle and remanufacture cartridges, but they are now expanding their services to include refurbishing and remarketing office machines and business equipment.

With improved product quality, the switch from analog to digital imaging, the growth of networking and the impact of the Internet, there has been a huge increase in demand for aftermarket solutions.

Since its infancy, printers have grown rapidly with specialized equipment satisfying new applications and meeting new demands. New features, papers, inks and toners are driving down the cost per page and improving efficiency in the office space. This increase in demand is a result of changing technology that has created an opportunity for dealers and resellers to get into the aftermarket with their existing service, repair and remanufacturing skills.

We have witnessed the growth of the aftermarket first-hand.

When I launched Locator Magazine in March1987, the demand for aftermarket products existed, but many companies did not realize the full value of used, reconditioned, or remanufactured equipment. They were reluctant to even try to sell these assets. Now, many companies are profiting from their sales of aftermarket office machines and business equipment (OMBE). Down through the years, Asay Media Network has fostered the growth of the aftermarket for hardware and consumables as well.

32

www.iRecyclingTimes.com

Our target then was and still is today to bring Buyers and Sellers together with our focus on the OMBE sector. Buyers responded so aggressively to Locator Magazine that Sellers often lacked enough inventories to satisfy the demand! It created a new kind of business, increased the size of the market and reduced the amount of equipment, parts and supplies that were either sent to landfills, recycled as scrap or gathered dust in a warehouse.

The Present The trend toward used equipment and remanufactured consumables has not changed, but has grown more complex.

Products are much more sophisticated and the industry has gone international. It continues to grow and evolve, more rapidly it seems with each passing year. In 1987, the all-in-one (AIO) cartridge as we know it today did not exist. Further, the cartridge remanufacturing industry had not yet been born.

There was a demand for used and remanufactured copiers and printers, but typewriters were still a major component of every office. Computers were quite expensive then and seldom seen on desks in every office. Software capabilities were highly limited and typically inflexible. Ground, mechanical toners were relatively crude compared to today’s complex formulations and chemically produced, shapecontrolled powders.

The Future In the future, we see continued growth and expansion of remanufacturing, development of more sophisticated

Recycling Times Magazine

Features consumable products, and more used imaging equipment in regular use. The list includes copiers, printers, wide-format, laser-based, LED-based and multi-function devices (MFDs). In the years ahead, digital imaging equipment will continue to evolve for both color and black-and-white hard copy.

As the industry continues to expand into international markets, doors are opening for additional opportunities.

Increased competition is generating better products, lower prices and more efficient image reproduction.

Specifically, we are seeing more targeted marketing than ever before. Of vital importance is the fact that people are growing more comfortable with the Internet as a convenient platform for buying and selling goods and services.

Office Machines & Business Equipment Across the full spectrum of enterprises, from the oneperson office to the small-to- medium size (SMB) business, to the corporate world, savvy purchasing agents are minimizing operating expenses, for both capital equipment and replacement supply items, by working with used equipment dealers and distributors.

This tight budget policy is being pursued by companies worldwide as a practical solution to the economic crisis.

Despite lower revenues, companies can still meet their obligations and achieve their goals by paying less for the necessary equipment and supplies.

Dealing with used equipment is a solution for the MPS contractor as well.

It enables the candidate to submit a competitive, low bid and still deliver the required goods and services.

Cartridge Remanufacturers Today’s cartridge remanufacturer is beset by shrinking profit margins, especially as monochrome cartridge prices fall and as OEMs become ever more aggressive in protecting their patent positions and intellectual property (IP) rights.

While color imaging and wide-format cartridges offer some relief, remanufacturers must find other ways to diversify their product offerings.

Cartridge remanufacturers are closely related to the used printer and copier business in several ways. They are: • Buyers/Sellers • Managers of a database common to both businesses • Familiar with the same market • Known in the same market • Visible at trade shows As the 10,000 or more cartridge reman companies worldwide develop a growing awareness of the opportunities offered by the Internet, they will likely expand their operations by working together with dealers in used office machines and business equipment both domestic and foreign.

The current battle to own the ink and toner market shows no signs of abating. Savvy end-users and MPS contractors will be searching for economical sources for these products.

Just as fueling a car with your choice of a particular brand of gasoline is the norm, recharging your printer with ink or toner is also becoming a matter of choice.

The Internet is the Way Forward From my perspective, the Internet is the Future. With 25 years dedicated to bringing Buyers and Sellers together, it is crystal clear to me that the Internet can do this matchmaking task better, faster, and on a worldwide scale. Consequently, we are moving aggressively to take a strong position on the Internet. Asay Media Network is expanding from a hard copy magazine to multiple websites that will enable viewers to trade office machines and business equipment on an international scale. We have launched 5 websites to best serve this trend: • www.thecopiernetwork.com • www.theprinternetwork.com • www.therecyclersnetwork.com • www.LocatorMagazine.com • www.ombe.com It is my belief that the interaction, synergy and business transactions that will spring from these resources will benefit our subscribers in a manner we have sought to achieve in more than 25 years of service to the office equipment and supplies industry. www.iRecyclingTimes.com

33

Recycling Times Magazine

Features

U.S. Patent Infringement Impact on Supplies Market

by Cathy Martin, InfoTrends Inc. Paying attention to all aspects of the market, including patent protection, is at the top of all supplies-related companies’ agendas. Companies that have not done due diligence in this regard have found out the hard way that it is not something to overlook. Those that do will face significant challenges. There are two main ways that printer vendors can protect their intellectual property: patent infringement court filings and International Trade Commission (ITC) complaints.

Filing lawsuit in U.S. Federal District Court is one of the two routes of patent production.

Patent Court Cases In the U.S., patent protection usually takes one or two paths. Patent cases in other countries follow different procedures, so companies operating in multiple markets will need to be aware of these differences. One route in the U.S. involves lawsuits that are usually filed in U.S. Federal District Court. The advantage of lawsuits for printer vendors is that if patents are found to be infringed, damages are awarded and agreements are made to not sell infringing products in the future. The disadvantage is that they can take many years to reach a final decision and are expensive for both parties.

The other route is to file a complaint with the ITC of the U.S. Federal Government. The advantage of an ITC complaint is these can take place relatively quickly, but the downside is the only products impacted are those that are made outside the U.S. and sold into the country. Another disadvantage of ITC complaints is any resolution that results in exclusion orders or consent orders relies on U.S. Customs to enforce, often with the aid of the patent holder. However, there are so many products from so many different markets (e.g., clothing, handbags, and watches) that it is impossible to stop all infringing products at the border. In any case, printer OEMs have frequently followed both paths (often at the same www.iRecyclingTimes.com

35

Recycling Times Magazine

Features

Filing a complaint with the ITC of the U.S. Federal Government is another route of patent protection.

time) because any patent infringing product that is stopped is considered a success.

International Trade Commission Complaints Once a complaint is filed with the ITC, a Section 337 investigation will usually be instituted within 30 days.

Decisions that do not institute an investigation are rare.

Investigations can be terminated if one or more of the respondents agree to a Consent Order, a licensing, or other settlement agreement. Within 45 days after publication of a notice of investigation, the presiding Administrative Law Judge sets a target date for completion of the investigation.

The Commission strives to complete most investigations in less than 15 months.

The Commission is authorized under Section 337 to issue two types of remedial orders—exclusion orders as well as cease and desist orders. Both types of orders may be issued in the same case. A cease and desist order directs a respondent in the Commission investigation to cease its unfair acts; including selling infringing imported articles out of U.S. inventory. Consent Orders are granted when a defendant gives up and agrees on its own to cease importation, and violation of these orders can also result in serious penalties.

Exclusion orders are enforced by the U.S. Customs and Border Protection, and cease and desist orders are enforced by the Commission. Exclusion orders are general exclusion orders (GEOs) or limited exclusion orders (LEOs), which are explained in the Table below. An award of monetary damages is not available as a remedy for violation of Section 337. This is usually left to the courts to decide. The Federal Circuit courts

36

www.iRecyclingTimes.com

will sustain the Commission’s determination unless in rare circumstances. In addition, if there are court cases in conjunction with the ITC investigation, the courts will typically wait until the ITC investigation is closed before settling the court cases.

According to the industry, GEOs and LEOs can be very effective against the specific parties and the products accused in the ITC action.

U.S. Customs actively enforces both orders to bar importation of infringing products. GEOs and LEOs are also accompanied by a Cease and Desist Order, which is an order directly from the ITC to the infringer to cease importation of the products. If a party violates the Cease and Desist Order, the ITC can levy substantial monetary penalties (e.g., the case of Epson against Ninestar). (See Table 1) Table 1: GEOs vs. LEOs General Exclusion Order (GEO) Prevent products from any company that infringe the specified patents in the complaint from being imported into the U.S. GEOs are issued when it is difficult to identify the source of the infringing products.

Limited Exclusion Order (LEO) Limited Exclusion Orders prohibit products imported from the companies specified in the complaint

First Sale Doctrine In many cases, in matters regarding imaging supplies, the First Sale Doctrine comes into play and is having a growing impact on the imaging supplies aftermarket. The issue is patent exhaustion. Remanufacturers can remanufacture/repair a patented product because once the cartridge is sold in the U.S., the patents are “exhausted.” The owner of the product can use it as the owner wishes. When the remanufacturer collects empties from across the world, they need to be able to prove that the remanufactured cartridges had their first sale in the country if they intend to sell into the United States.

The following Table highlights some recent cases with patent implications. (See table 2) Protecting patents for supplies is going to remain a key

Recycling Times Magazine

Features part of the business model for many of the participants up and down the supply chain, including OEMs and aftermarket producers. The pace of litigation will continue to increase in all markets around the world as all parties will try to preserve their market share and, therefore, their supplies annuity.

This article is from the InfoTrends’ OEMs Protect Supplies through Intellectual Property Update report.

Contact Scott Phinney for more information: scott_phinney@infotrends.com or (781)616-2123.

Table 2: Legal Summary with First Sale Implications ITC Complaints

First Sale Doctrine

Outcome

Possibly

Most imageRUNNER toner suppliers barred from selling

√

Has impact

Pending

√

√

Ongoing Impact

Company

Issue

Supply Type?

Lawsuits

Canon

imageRUNNER Toner Bottle

New Build

√

Canon

Drum Gear for Laser

New Build Remanufactured

√

Epson

Ink Tanks

New Build Remanufactured

√

HP

New Build Ink Cartridges and Tanks

New Build

√

Lexmark

Laser Cartridge Parts

New Build Remanufactured

√

Xerox

Solid Ink Patent

New Build

√

GEOs issued

√

GEO issued Media Science now out of business

www.iRecyclingTimes.com

37

Recycling Times Magazine

Profiles

Asay Media Network: A Growth Company

Roger Asay, President of the Asay Media Network and Publisher of Locator Magazine. In 2000, INC magazine named Asay Media one of America's Top 500 growth enterprises.

Expanding into International Markets

by Art Diamond, Senior Consulting Editor The Joplin Tornado On Sunday, May 22, 2011, at about 5:35 p.m., an EF5 tornado touched ground in Joplin, Missouri, cutting a swath of total devastation that measured 13 miles long and up to one mile wide. Tornadoes are common in Missouri, but rarely does a twister of this intensity strike at the heart of a populated American city. With winds measuring up to 200 miles per hour, the cyclone left 159 dead, 1,150 injured, 6,954 homes literally blown away and 18,000 cars destroyed.

Roger Asay, President of the Asay Media Network and Publisher of Locator Magazine, lives in Joplin, MO. His home is just South of the tornado’s path. His office on Range Line Road is just North of the once rubble-strewn trail. Luckily, both structures were untouched by the storm!

As one of his gambling buddies, in every casino we’ve played I’ve known Roger to be one lucky guy. In the wake of this horrific storm he continues to hold that title! He gambles like an engineer, taking only calculated risks. And with this mindset, he has proven a “winner”, initially as a Publisher and more recently as an Internet strategist.

Building Locator Magazine In 1987, while working for a copy machine Dealer, Roger was struck by the large inventory of machines and parts left

38

www.iRecyclingTimes.com

gathering dust in the company’s warehouse. These were idle assets that he felt must have value to someone, somewhere.

When the copier dealer folded in 1987, he started a service business of his own dedicated to helping members of the Dealer network do business with each other. His mission was to bring Buyers and Sellers together. His vehicle was Locator Magazine, not a traditional publication, as it had no editorial content, but one that contained listings of office machines and business equipment (OMBE) available for sale.

As Roger explains, “We were Dealer-based. Our foundation was the resellers that sell used equipment. When it was first opened, it was just me. Larry Jackson, who is still with me, signed on as Vice President along with Carole, our office manager, who has retired. We grew and expanded, adding new faces all along. By the mid-1990s our staff numbered more than 50 employees.”

Asay Media’s new facility in Joplin occupies 4,500 square feet of floor space on one of the city’s main streets—Range Line Road. There are no other branches or subsidiaries.

Over the past 5 years, the company decreased in terms of employees while they focused on building a presence on the Internet and on growing the customer base. Things are changing now as the company is strategically positioned with 5 websites on the Internet. This new game plan is bringing

Recycling Times Magazine

Profiles

Roger Asay welcomes Visitors to the company’s headquarters in Joplin, Missouri.

significant financial growth as well as adding many new customers to Asay Media’s data base. “We expect July to be a banner month this year in terms of revenue,” says Roger.

Positive Results in a Negative Market Roger Asay is proud of the company’s positive results in a negative market. “The economy,” he says, “has not been a friend. Many companies are facing severe financial pressure.

Sales are down, and businesses are struggling. The good news is that these conditions favor the aftermarket. That’s where the action is and that’s where we are flying our flag.”

How the Office Scene Has Changed Over the past 25 years there have been major changes in both the technology and marketing arenas. In the beginning, everything was analog and the hardware required frequent service and repair. Along came the switch to digital imaging and the All-In-One (AIO) cartridge. Color was added and hightech color toners became available to the aftermarket.

Today, the equipment is so much more reliable it is difficult to compare the copiers and printers of yesterday with today’s machines. Most importantly, office machines and business equipment have more value in the aftermarket today than they did 25 years ago.

There’s also much more specialization in today’s imaging world. Wide format printers were a novelty back in the 1980’s and have become an important market sector today, printing huge graphics, plane wraps, building wraps and even theater stage graphics. We have transactional printers today, expressly designed for printing bank statements, waybills, invoices and the like. There are ink jet printers for food decoration that are based upon edible inks. This is an entirely new niche market

that accounts for serious revenue with thick profit margins.

Copiers perform some important functions that printers cannot handle. Certain copiers can fold and staple; others can print both sides of a page (duplex printing). The net result is that printers have by no means replaced copiers. Yet printers have indeed increased the size of the office machine market.

Today’s large offices typically have numerous printers in active service, including one or more that are online, that is, on the Internet or a private network. “Networking is another innovation that has changed imaging procedures, methods and habits,” observes Roger. “When we launched Locator Magazine, networks didn’t exist. Today, in my perspective, networks play a major role in communication, sales, marketing and distribution. Perhaps what is most important is their role in enabling businesses to operate on an international scale.”

The multifunction printer (MFP) is another key innovation that has enabled businesses to communicate faster at a lower cost. In many cases the MFP machine has a scanning function that enables the end-user to scan text, photos, etc., for fax or email transmission.

Consumables “I think consumables have demonstrated the highest growth rate,” notes Vice President Larry Jackson, “as compared with equipment, service, machine parts and components. Maybe new hardware sales have been suppressed due to the economic crisis, but the life of a digital copier is a lot longer today than the analog copier of the ‘80’s and ‘90’s. One of the reasons, of course, is the AIO cartridge.

These user-replaceable units not only recharge the toner or ink that the machine consumes, but they avoid the expense of a service call as they enable an unskilled operator to change out those critical components that either have malfunctioned or are most likely to.

Looking at the big picture, Roger Asay suspects many market researchers have not reported on the true growth of the imaging industry because they are too far removed from the action in the used equipment and related markets.

Let’s not forget the insurers, the leasing companies, the small package shippers and the road, rail and ocean transport lines that also participate in this industry.

To fill this gap, what Asay Media has done is research publicly-held stocks active in or peripheral to our industry.

As a result, they have come up with a method of tracking revenues starting with a current estimate of $500 billion in annual retail sales for 2012.

According to Roger, “If you look at revenues for Canon, www.iRecyclingTimes.com

39

Recycling Times Magazine

Profiles HP, Lexmark, Sharp, Konica-Minolta, Panasonic, Ricoh, Xerox, Okidata and other original equipment manufacturers (OEMs), you come up with a rather large number. The kicker is that this number fails to include consumables from aftermarket suppliers. Also, it does not include Dealer sales, which are typically at wholesale prices. The problem is the OEM will sell a machine to a wholesaler or a re-seller who sells it to an enduser. That sale is followed by repeat sales of supplies, service and repairs and possibly new or used upgrades to the device.”

When that machine is replaced, or discarded, it may be sold again. It could be shipped to an overseas buyer or disassembled and “parted out” by a parts supplier. Of course any of these cycles could be repeated many times. If you chart the life of a single copier (prepare a genealogy, as you would a family history) it will likely show many different owners of that machine. That’s where current estimates of market size often fail.

Managed Print Services Let’s look at MPS. A Dealer negotiates with a customer for an MPS contract that provides all the hardware, software, consumables, cartridges, toner, ink and paper. If the hardware goes down, or needs a replacement part, the Dealer often turns to the aftermarket where he/she can buy used parts, or even a refurbished machine. For toner and ink cartridges, they might cut a deal with a local or national cartridge reman company rather than pay full OEM price.

The average customer doesn’t care; what matters is that they get a good print with minimum downtime. They sign an MPS contract for so many copies per month or per year.

Dealers must make margin on this MPS contract. Ideally, they

Advertising Sales Team (from left): Lemmie Johnson (West) Shawna Smith (Sales & Marketing Assistant) Billie Bull (Products Specialist) Susan VanGilder (East)

40

www.iRecyclingTimes.com

will renew the Agreement and keep the copiers and printers running year after year. If a machine begins to fail, or requires frequent service and repair, they will either sell it or trade it in for a new or used model.

In Roger’s opinion, “The market is changing and MPS is a win-win arrangement for the Dealer and his customer. For the OEM, not so much when it comes to smaller offices. You hear much about the OEMs reporting shrinking sales. But, that doesn’t mean the Dealer hasn’t figured out how to make a profit. In a way, the industry is kind of, sort of, doing well. MPS is a winning concept. It takes all of the worry and concern away from the enterprise and guarantees minimum downtime on their copiers and printers and, in many cases, a fixed cost per page.”

A fleet of imaging machines presents a formidable challenge to proper management. Customers might have a printer over here, a copier over there, and a wide-format inkjet machine down the hall. They are likely all different brand machines and the customer could be buying cartridges from a number of different suppliers.

In another way, MPS has been used to block out competition, but like patents, someone always seems to find a way to circumvent the legal document. That’s what entrepreneurs do and it’s something Asay has learned much about in 25 years Asay Network’s Mission What is Asay Network’s mission? Very simple: In the words of Roger Asay, “We are putting Buyers and Sellers together. At the end of the day, that’s the mission we accomplish. And we know how to perform that service better than most brokers and publications out there.”

Is the demand for used office equipment increasing or decreasing? In Roger’s view, the demand is much larger than the supply, but it all depends on the product and on the Buyer. Equipment that is old and lacks all of the latest features, may not sell in a modern office, but could end up in a church basement or on a ship heading to a port in South America.

The demand is also being driven by the economy which is causing more Buyers to seek used equipment.

How does Locator Magazine differentiate itself from other publications catering to the used equipment market? Being first in the industry has proven a major factor in the success of this publication and of the Asay Media Network.

Also, readers who log on to www.therecyclersnetwork.com (Asay’s website for cartridge remanufacturers) can request Asay’s Newsletter which will be emailed to them. In the

Recycling Times Magazine

Profiles

Roger Asay in the Server Room where Asay’s frequently upgraded equipment provides high-speed Internet access while hosting the company’s 5 websites

month of July, for example, 2,299 newsletters were emailed to cartridge recyclers at their request! This service is constantly expanding Asay Network’s database, an important key to “put Buyers and Sellers together.”

After Roger started up in 1987 there were no competitors for almost 10 years. Locator Magazine has kept many advertisers for a long, long time. Over the years the pages of this publication have boasted the most reliable Sellers.

These companies do everything possible to ensure each sale is closed properly. They service their Buyers well and have therefore earned their trust.

That policy hasn’t changed for 25 years. Neither has Asay’s ingenuity. “We were innovators on Day 1,” says Roger, “and we continue to innovate today by moving into the international arena with our multiple websites and international advertising.”

Another point of difference is that Locator Magazine keeps away from editorial material and remains focused on equipment.

The Future for Asay Roger senses the possibility of rapid growth ahead with his Internet websites. He is looking, in particular, at the growth of eBay, alibaba and craigslist. “You don’t hear about any financial problems with these three leaders,” notes Roger, “none of them is struggling. They represent the direction that we are

42

www.iRecyclingTimes.com

heading and the model we are using.”

The OMBE website is fully automated. A seller registers, logs on, and can then post their own inventory online, adding photos and text as they wish. The annual fee for unlimited products allows them to update, delete, add or change content all year long. There is no fee for Buyers.

“We don’t host editorial articles,” Roger explains, “but we do place news items and other titles on our website. When viewers click on the title it takes them to the original article and the website of the publication that initially carried the story. These visitors boost their traffic, gets them readers and builds their brand name.”

This enables Asay to carr y editorial content. They plan to expand this with more industry news, articles, announcements, etc. They have recently introduced company sponsored banner ads on all of their targeted industry Newsletters, plus industry suppliers can also display their “storefront” on their OMBE websit where active Buyers can learn more about them, shop their inventory and link to the Sellers company website.

Asay is also enabling visitors to post their own upcoming industry events. The website software is programmed to automatically delete the posting when the event ends.

About Asay Media Network Founded in January 1987, Asay Media Network publishes the original Locator Magazine for the office machine and business equipment industry. The Locator is mailed each month to office machine dealers, suppliers, business equipment wholesalers, used office machine and equipment dealers, technicians, repair services, component vendors and consumable suppliers in the United States and Puerto Rico. The Locator is used by thousands of subscribers and readers as a primary resource to find new and used office machines, business equipment, parts and components, supplies, software and services. It also appears monthly in an online page-flip version (www.locatormagazine.com).

In 1991, Asay Media Network introduced the International Edition of Locator Magazine thereby opening a gateway for U.S. companies interested in selling their products and services overseas. A Spanish language version is also online.

Asay Media Network also manages the office machine and business equipment website www.OMBE.com which provides more features to Buyers and Sellers in the office equipment industry than any other resource. It permits users to contact Sellers directly at no cost, enabling them to obtain first-hand information about their products.

Recycling Times Magazine

Tech Zone

Remanufacturing the Xerox WorkCentre 3550 Toner Cartridge

By Mike Josiah and the Technical Staff at Uninet Imaging First released in September 2010, the Xerox WorkCentre 3550 printers are based on a 35ppm, 1200dpi engine. The first page out is rated at under 9 seconds, and the monthly duty cycle is up to 75,000 pages. All models released so far are multi function in that they are print, copy, scan, fax, duplex and email capable.

These cartridges do not have a drum cover, and come new with a piece of heavy paper with foam glued to it taped around the cartridge. See Figure 1

The cartridges used in these machines are listed below.

LY Cartridge

Cost

HY Cartridge

Cost

106R01528 (5k pages USA)

$129.99*

106R01530 (11k pages USA)

$199.99*

106R01529 (5k pages Europe)

106R01531 (11k pages Europe)

*Costs as of 8/2011 The printers in this series so far are the: Xerox WorkCentre 3550 Xerox WorkCentre 3550/X Required Tools • Toner approved vacuum.

• A small Common screw driver • A Phillips head screwdriver • Needle nose pliers

▲ Figure 1: Xerox WorkCentre 3550

There are both LY (5,000 pages) and HY (11,000 pages) cartridges available. Each version of cartridge has its own specific chip, but the cartridges themselves are identical. These are nice easy cartridges to remanufacture and have a nice profit margin as well.

44

www.iRecyclingTimes.com

2

step >

1

• Replacement developer roller • Replacement PCR • Conductive grease • Drum lubricating powder

Gently pry off plastic drum axle bushing. Keep this bushing with the appropriate end cap when removed. Each side is different. step >

step >

Place the cartridge with the handle/ supply chamber facing you. Remove the 3 screws on the right end cap.

Required Supplies • Xerox WorkCentre 3550 toner, 145g LY, 265g HY • Replacement chip (HY or LY ) • Replacement wiper blade

3

On the top edge of the end cap, there is a plastic tab.

Recycling Times Magazine

4

Press in on the tab and remove the right end cap.

Lift off the roller cover. There is a PCR cleaning roller attached to the cover.

Vacuum this roller clean. step >

step >

Tech Zone

8

step >

step >

Remove the developer roller drive gear; put a strip of tape across the remaining gears. They do not need to be removed the tape will help keep them in place.

5

On the opposite side of the cartridge, remove the three screws on the left

step >

9

step >

end cap.

10

12

Carefully pry up the side plastic tab to release the waste chamber.

Remove the waste chamber.

11

toner.

On the supply hopper, remove the fill plug and dump out any remaining

step >

On the top edge of the end cap, there is a plastic tab. Press in on the tab and remove the left end cap.

7

step >

step >

On the fill plug side, press in on the plastic tab and remove the spring/plastic bushing assembly.

step >

step >

Gently pry off plastic drum axle bushing. Keep this bushing with the appropriate end cap when removed.

6

13

14

Remove the developer roller.

www.iRecyclingTimes.com

45

Recycling Times Magazine

step >

23

Fill the hopper with 135g or 290g of Phaser 3635 toner. Check for leaks.

step >

Carefully pry up the doctor blade. This blade has a very tight fit, work it off

Clean and install the developer roller, long shaft side to gear side first.

24

On the waste hopper, remove the E-ring from the drum axle.

step >

16

20

25

Slide the drum axle out from the side opposite the E-ring.

step >

Remove the two screws on the doctor blade.

step >

step >

15

step >

Tech Zone

26

Remove the OPC drum.

17

Clean out any remaining toner from the hopper.

Snap the spring/plastic bushing assembly in place. Make sure the tail of the spring is set properly.

Clean the doctor blade and foam seals.

19

Replace the doctor blade and 2 screws.

46

www.iRecyclingTimes.com

step >

step >

18

step >

step >

step >

carefully.

21

22

Install the drive gear on the developer roller.

Recycling Times Magazine

Tech Zone

27

Slide the PCR to the non contact side. Remove the PCR.

Install the drum axle small drum gear side first. Make sure that the E-ring groove ends up on the small drum gear side.

step >

step >

step >

step >

Clean the PCR with your preferred PCR cleaner.

WARNING: Do not clean the OEM PCR with alcohol, as this will remove the conductive coating from the roller. If the PCR is an aftermarket, follow the cleaning methods recommended by the manufacturer. If the PCR is an OEM, we recommend it be cleaned with your standard (Non Alcohol type) PCR cleaner.

31

32

Clean the old conductive grease off the PCR shaft and contact. Replace

35

28

Remove the two screws and the wiper blade.

34

drum.

Coat the OPC drum with your preferred lubricant and install the

step >

33

36

Install the E-ring.

Install the waste hopper on to the supply chamber. Make sure that the tabs lock into place on the side wall. step >

step >

Coat the new wiper blade with your preferred lubricant. Install the new wiper blade and two screws. The tail of the wiper blade should face up.

30

Install the PCR by sliding the long shaft side through the non-contact side.

Bring it back to fit into the contact side. step >

step >

Clean out all the toner from the hopper.

It is interesting to note that on new cartridges, some toner is in the waste hopper. Apparently these cartridges are being tested before they are shipped, or the drum was lubricated with toner.

29

step >

step >

with new.

37

www.iRecyclingTimes.com

47

Recycling Times Magazine

step >

Install the right side end cap and three screws. Make sure the top rear tab locks in place.

39

Press the drum axle bushing in place.

Set it so the small tab is at the end of the groove; make sure it is fully seated. The two small bushings are different. Make sure you have the correct bushing for this side.

40

Remove the tape from the gears, and install the left side end cap and three screws. Make sure the top rear tab locks in place.

41

step >

Press the drum axle bushing in place.

Set it so the small tab is at the end of the groove; make sure it is fully seated. The two small bushings are different. Make sure you have the correct bushing for this side. See Figure 48 NOTE: It is very important that both of the drum axle bushings are set in the correct orientation. These bushings could actually be called separators in that when set in the “new� position as described above separate the developer roller from the drum just a bit helping to prevent flat spots on the developer roller.

42

The chip is held in place by plastic rivets. It must be replaced for the cartridge to work. It can be replaced by cutting the plastic rivets, drilling two holes, and setting two self tapping screws in place. step >

Install the cleaned PCR cleaning roller cover assembly.

step >

38

step >

step >

Tech Zone

43

Printing Test Pages: As these machines are copiers, the easiest way is to just make a copy of a suitable test page.

Repetitive Defect Chart OPC drum

75.5mm

Supply roller

44.9mm

PCR

37.7mm

Developer roller

35.2mm

48

www.iRecyclingTimes.com

â–˛ Xerox WorkCentre 3550