The Recycler Issue 333
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WORLD FOCUS<br />
GLOBAL HP, Counterfeits, IP, Class Action<br />
HP responds to class action and reports<br />
more counterfeiting action<br />
<strong>The</strong> initial Complaint was filed by Christina Rose on 10 April. <strong>The</strong> OEM also reported that Between<br />
October 2019 and March 2020, it has reportedly seized nearly 200,000 in Kenya, Nigeria and Tanzania.<br />
<strong>The</strong> initial class action complaint was<br />
filed by Christina Rose in the United<br />
States District Court Northern District<br />
of California on 10 April, and alleges<br />
that HP fails to disclose that the printers<br />
use substantial amounts of coloured<br />
ink when printing images and text in<br />
black and white (a process known as<br />
“underprinting”).<br />
HP Inc. has answered the Complaint<br />
filed by Christina Rose with a ‘Motion<br />
to Dismiss’ the case, alleging that in<br />
the original complaint, the Plaintiff<br />
has “…failed to plead a duty to disclose,<br />
a material omission, or an intent to<br />
defraud”, “…failed to plead a claim for<br />
any predicate violation of law”, “…failed<br />
to plead that she was in privity with<br />
Defendant or that the product was unfit<br />
for its ordinary use” and “…has not alleged<br />
any actionable misrepresentations or<br />
omissions”.<br />
HP says in its motion, that it did not<br />
have a duty to disclose to the Plaintiff the<br />
details of the technical process and that “…<br />
it complied with that duty by providing<br />
detailed information about underprinting<br />
on its website and in its online user<br />
manuals, which have been available and<br />
accessible to any consumer well before<br />
Plaintiff purchased her printer.”<br />
<strong>The</strong>refore, HP concludes in its motion,<br />
that “Plaintiff cannot seek injunctive<br />
relief because she has always had access to<br />
information regarding the underprinting<br />
process for HP’s printers and thus cannot<br />
plausibly allege she will be injured in the<br />
future.”<br />
HP said that the Plaintiff ’s complaint<br />
should be dismissed with prejudice.<br />
Tech Trends KE reported that in raids<br />
held since October 2019 and March 2020,<br />
HP’s Anti-Counterfeiting and Fraud<br />
(ACF) Programme has managed to help<br />
seize close to 200,000 counterfeit printer<br />
cartridges and components in Kenya,<br />
Nigeria and Tanzania.<br />
Tech Trends KE said that local authorities<br />
managed to disrupt “wholesalers and<br />
retailers of fake products through a series<br />
of raids carried out in retail outlets,<br />
warehouses and manufacturing facilities<br />
across the region.”<br />
5,400 counterfeit toner cartridges<br />
from twelve retailers have been seized<br />
in February 2020 alone. Between October<br />
2019 and March 2020, 185,000 fake<br />
items were seized in raids in Dar es<br />
Salaam, Tanzania and in Nigeria HP<br />
seized 7,100 illegal items “in a series<br />
of outlet shop raids.”<br />
Tech Trends KE reported that one of the<br />
searches in Dar es Salaam “was initiated<br />
following a Customer Delivery Inspection<br />
(CDI)”, a service that HP offers to its<br />
large and medium customers, “whereby<br />
if a customer suspects that counterfeit<br />
products have been included in a shipment<br />
of supplies, HP will check the products on<br />
site and act accordingly.”<br />
<strong>The</strong>re have been over 12 million<br />
counterfeits and components seized<br />
throughout the EMEA during the past<br />
years by local authorities backed by HP<br />
Inc and the OEM itself has conducted<br />
more than 4,500 “audits and inspections<br />
of partners stocks or suspicious deliveries”.<br />
HP Inc’s ACF programme is responsible<br />
for educating its customers and partners<br />
on what to look out for in counterfeit<br />
products and works closely with local and<br />
worldwide law enforcements to find and<br />
destroy illegal operations that produce<br />
fake HP Inc printing consumables. ■<br />
18 <strong>Issue</strong> <strong>333</strong> August 2020