LEXINGTON, Ky., Aug. 30 - The Ninth Circuit Court of Appeals has upheld a program under which Lexmark International, Inc. (NYSE: LXK) offers customers discounted laser printer cartridges in exchange for agreeing to return the used cartridges only to Lexmark for remanufacturing or recycling.
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The case was before the court as a result of an appeal by the Arizona Cartridge Remanufacturers Association Inc. (ACRA), challenging Lexmark's Cartridge Return Program. Joining every other court that has ruled upon challenges to the Lexmark cartridge Return Program (formerly known as Prebate), the Ninth Circuit reaffirmed the legality of this highly successful and environmentally friendly program.
Lexmark offers customers discounts on new cartridges in return for their agreement to return the used cartridges only to Lexmark for remanufacturing or recycling. Lexmark uses the cartridges in its remanufacturing business. In order to facilitate competition and customer choice, Lexmark has always offered cartridges without a discount that may be remanufactured by anyone for those customers who desire it.
"The court has ruled in support of customer choice. This is a victory for customers and their right to choose to receive a discount in exchange for a simple agreement to return the empty cartridge to Lexmark for remanufacturing or recycling. Lexmark's program is good for customers, good for the environment, and fair to the competition," said Vincent J. Cole, Lexmark vice president and general counsel.
About Lexmark
Lexmark International, Inc. makes it easier for businesses and consumers to move information between the digital and paper worlds. Since its inception in 1991, Lexmark has become a leading developer, manufacturer and supplier of printing and imaging solutions for customers in more than 150 countries. Lexmark reported $5.3 billion in revenue in 2004, and can be found on the Internet at http://www.lexmark.com.
Lexmark and Lexmark with the diamond design are trademarks of Lexmark International, Inc., registered in the U.S. and/or other countries.
