Ricoh sues CMC Magnetics and Lite-On IT for patent infrigement


Forbes.com reports that Ricoh is sueing CMC Magnetic and Lite-On IT for patent infrigement. CMC Magnetics is one of the largest media manufacturers in the world and produces media for several big brands and has been sued because it is using technology developed by Ricoh that is able to tell the recorder what laser strenght should be used and two other undisclosed patents.

Lite-On IT, the company behind the Lite-On optical storage line is sued because it is using a technology that is able to change the laser power while recording (SMART-Burn, which it does very succesfull). Also two other undisclosed patents are violated according to Ricoh. According to the article Ricoh has been trying to find an agremeent with both companies to pay royalties but no agreement was reached.

Ricoh, Japan's second-largest maker of office machines after industry leader Canon Inc , gets about 50 billion yen ( $ 440 million) in sales each year from optical disc-related operations, or about three percent of its annual revenues of 1.8 trillion yen.

The Japanese company said it had filed the suit against CMC in California, while the suit against Lite-On was presented to a Texas court. The suits are unrelated. Both were filed on Monday.

Within the industry there is a lot of Intellectual
Property (IP) in patents and every manufacturer has to pay it's royalties to the
IP owners. But it's a public secret that companies sometimes 'forget' this in
order to reduce the initial cost price. But of course someday the IP owners will
go after them and collect the royaly they rightfully own as they have invest
time and money to develop the technology.

Source: Forbes.com

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