Xerox files suit against HP
In a release, Xerox (XRX) said it is seeking a permanent injunction against HP (HWP) -- which dominates the printer industry -- barring it from manufacturing and selling color inkjet printers and supplies.
The suit, filed in U.S. District Court in Rochester, N.Y., seeks unspecified damages.
"Our intellectual property is among our most valuable assets," Xerox Chief Operating Officer Richard Thoman said in a release. "When we find unauthorized use of our patented technology, we have to move accordingly to protect our shareholders' investment. We just will not let others misappropriate our intellectual property."
HP officials could not be reached for comment.
The news comes at a bad time for HP, which Wednesday announced that it would not meet Wall Street's expectations for the second fiscal quarter, and whose stock plummeted more than 10 percent Thursday morning.
The company blamed Asian financial crises and aggressive pricing pressures for dragging down margins and profits. HP said earnings for the quarter would likely be around 65 cents per share, far below the 77 cents per share predicted by a First Call survey.
Micro Solutions also sued HP
Micro Solutions Inc., DeKalb, Ill., also filed a patent infringement suit against HP on May 6.
Its suit, filed in the U.S. District Court for the Northern District of Illinois/Western Division, alleges patent infringement by HP's CD-Writer Plus 7200e external rewriteable CD drive.
The two patents involved in the suit are U.S. Patents Nos. 5,335,338 and 5,390,321.
Micro Solutions uses the technology involved in its backpack external storage products for PCs. The company expects to ship its Backpack CD-rewriter, which uses a parallel port interface, in June.
HP's stock sank like a stone at the opening bell Thursday, down $9.88 to $71.75. The fall also pulled down Dow.