Xerox Beats Rival's Monopoly Claims Over Replacement Ink

A New York federal court has granted summary judgment for Xerox Corp., finding a competitor has not produced sufficient evidence that Xerox illegally maintains a monopoly over the market for replacement ink sticks.

The ruling relates to a counterclaim brought by defendant Media Sciences Inc. against plaintiff Xerox in a patent infringement case.

U.S. District Judge Richard J. Howell of the Southern District of New York said Xerox introduced substantial evidence that its ink-stick prices have decreased on a cost-per-page basis during the relevant time period.

According to court records, MSI makes generic ink sticks for Xerox's color printers and sells them in competition with Xerox.

MSI alleged antitrust claims for actual and attempted monopolization in violation of the Sherman Act.

The company claimed Xerox made frequent and unnecessary changes to the design of its ink sticks to illegally maintain its monopoly power.

Xerox asked the District Court to grant summary judgment on the monopoly claim.

Judge Howell looked to the U.S. Supreme Court's ruling in Eastman Kodak Co. v. Image Technical Services, 504 U.S. 451 (1992), in analyzing the motion.

The Supreme Court said the plaintiffs in Kodak should have been granted summary judgment on their monopoly claims because they showed Kodak controlled the aftermarket for copying equipment by locking in customers, changing its policies after customers were locked in and charging them supracompetitive prices.

Judge Howell said MSI had made no such showing against Xerox.

MSI presented no evidence that the typical customer would refrain from switching from Xerox printers because of prohibitive costs or that Xerox charged customers supracompetitive prices.

"[A] reasonable trier of fact could not find that Xerox possesses monopoly power in the market for ink sticks for its color working group printers," the judge concluded in granting summary judgment for Xerox on MSI's counterclaim.

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Xerox is represented by Michael Cowie and Joseph Lavelle of Howrey Simon Arnold & White in Washington.MSI is represented by James J. Foster, Lawrence M. Green and Hunter D. Keeton of Wolf, Greenfield & Sacks in Boston.