Court Upholds Lexmark Suit

The Ninth Circuit Court of Appeals has upheld a program under which Lexmark International, Inc. offers customers discounted laser printer cartridges in exchange for agreeing to return the used cartridges only to Lexmark for remanufacturing or recycling.

The case was before the court as a result of an appeal by the Arizona Cartridge Remanufacturers Association Inc., challenging Lexmark's Cartridge Return Program. 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.