March 25, 2019
The OEM has been warning its channel partners at its recent Reinvent conference that it is taking a robust stance against the trade in “counterfeit, cloned and imitation print cartridges.”
As CRN reports, this combative stance follows the recent revelation that HP’s print supplies business has been floundering somewhat financially, reporting a drop in revenue of three percent Y-o-Y worldwide, and a 9 percent decline in the EMEA region.
Speaking at the Reinvent conference held in Houston, the company’s EMEA Print General Manager, David Ryan, declared that the OEM was taking a “zero tolerance approach” to counterfeits, clones and imitations as it seeks to improve its printing fortunes.
“Some partners don’t realise that these cartridges are violating intellectual property, and that is something we will tackle vigorously,” Ryan explained.
“We’ll continue to work with loyal partners to take all the action we can where illegal trading practices are being engaged.
“We’re increasing our lobbying efforts to ensure that, from a government affairs perspective, the trading practices of some of these clone companies follows the same standards that any product would do – in terms of certification and compliance. That is an area that is under address right now.”
Ryan also revealed that the OEM’s worries over its print supplies fortunes go beyond just its plummeting sales, declaring imitation cartridges to be an environmental risk. He said imitation products tested by HP have been found to have “high failure rates and poor print quality”, and many have also failed Blue Angel tests and have the potential to damage printers.
As a result of these issues, he explained, buying cheaper imitation cartridges actually works out more expensive in the long run, due to the harm they cause.
“Partners that are dealing in counterfeit or imitation supplies are taking a big risk,” Ryan said. “It’s a risk when it comes to the experience of the end customer, but also environmentally.
“They look very cheap on the front end but when it comes to the percentage of cartridges that fail or don’t deliver the print yield, or damage the printer – these are costs that the customer doesn’t see when they are attracted to the low price.”
While Ryan was less vocal when it came to third-party print supplies, including remanufactured, recycled and refilled HP cartridges, this leniency was “only in the case of ‘closed-loop recycling’ that is controlled by HP itself.”
He went on to explain that the OEM was committed to the education of channel partners and customers as to why HP products are “the better option” to purchase.
“We think there is a false economy associated with these cartridges,” he claimed. “Many of them also violate intellectual property.
“Educating our channel, putting tools in our channel around that, is an important priority for HP.
“We need to educate customers around what they are buying. Many don’t know the difference between remanufactured cartridges [and official HP products], so there is a certain amount of education needed to point out the false economy of saving a few pounds but having poorer air quality and print quality.”
Categories : World Focus