JACO, ARCA Wrangle Over Patent

Appliance Recycling Centers of America, Inc. has received a legally binding document in which JACO Environmental, Inc. states it will not sue ARCA or any of ARCA's customers for violating JACO's recycling patent that ARCA alleges was fraudulently obtained. 

Last December, ARCA filed suit in U.S. District Court for the Central District of California alleging that JACO's patent covers appliance recycling methods and systems ARCA developed in 1987 and has used in serving more than 40 electric utility appliance recycling programs since that time.    

A court document incorporating terms of the JACO commitment is being negotiated and should be finalized within the next month. ARCA will continue seeking a permanent injunction barring JACO from using the patent to market JACO's recycling services, due to ARCA's belief that the patent is invalid and unenforceable since it is based on methods and processes ARCA invented. 

ARCA is also asking the court for damages related to charges that JACO has engaged in unfair competition and false and misleading advertising under Federal and California statutes.

Edward Cameron, ARCA's president and CEO, commented: "JACO's legally binding decision not to enforce its recycling patent against ARCA removes any potential threat to our business. It is also a direct, positive outcome of the aggressive litigation stance that ARCA has taken with JACO."     

“Reflecting our belief that the JACO patent is based on methods and processes that ARCA developed, we will continue legal efforts to bar JACO from using its patent in the course of its business and to seek damages related to JACO's use of that fraudulently obtained patent to market its recycling services."