Lexmark Sold Inkjet Patents

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International corporation Lexmark has announced their exit of the inkjet industry long ago. In other words, they just couldn’t handle the competition from HP ink cartridges, Canon ink cartridges and Epson ink cartridges. The Company is about to sell its Inkjet Patents!

Lexmark are about to sell 1500 inkjet patents. This will put the final nail in the coffin for Lexmark’s Inkjet industry. Lexmark are cashing in. Instead of attempting to compete, they’re selling the patents to a Japanese company called Funai Electric Company Ltd. The transaction will also boost them by $100 million dollars (about 78 million euros). The deal is additionally scheduled to be completed by the first half of 2013.

Funai from Osaka in Japan has been a partner of Lexmark for over 15 years. Lexmark has indicated that the two businesses have strong relationship between each other due to so much time working together.

Funai will receive inkjet research, shares and Lexmark International, which is based in Philippines.

President and CEO of Funai, Tomonori Hayashi stated:

“This transaction provides us with a crucial and tremendous opportunity to enhance our office solution business. Funai and Lexmark have developed a great partnership and we are glad to take over Lexmarks inkjet related technology and assets. The acquisition of the latest inkjet technology enables Funai to start and grow our own business. Funai will benefit from a strong inkjet business”

It is difficult to see why Lexmark are selling the inkjet technology and the patents. Especially with inkjet printers catching up rapidly with laser printers and Epson even proved, that some of their inkjet printer are better than laserjets. However, Lexmark made a decision and only time will show whether it was the right one or the wrong one.

Chairman of Lexmark and CEO, Paul Rooke additionally stated:

” As we continue our transition to becoming a leading end to end solutions provider, this transaction essentially completes our exit from the ownership of inkjet related assets, although we will continue to support our existing customer base with the sale of inject supplies. Funai has been a trusted partner of Lexmark’s since 1997 and I am fully confident in Funai’s ability to deliver high quality inkjet supplies for Lexmark. “

The two companies have been in partnership for so long and while Lexmark will focus their attention on Lexmark printers and toner cartridges for Lexmark printers, it is nice to see that Lexmark will still be taking care of their existing customers by supplying ink cartridges for Lexmark inkjet printers.

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