Hewlett-Packard Settles Inkjet Patent Suit

Ninestar will stop selling the products in the U.S.
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Hewlett-Packard

(HPQ) - Get Report

said a Chinese maker of inkjet cartridges that had infringed H-P patents will no longer sell the offending wares in the U.S.

H-P announced a settlement with Ninestar on Tuesday, nine months after suing the company in U.S. federal court and filing a complaint with the International Trade Commission. Ninestar makes replacement ink cartridges that are compatible with several H-P printers.

According to H-P, Ninestar has acknowledged the validity of H-P's patents and has agreed to stop selling the cartridges in the U.S. and in certain other countries where the patents are held.

A representative from Ninestar, which is based in Guangdong, China, but has offices in Montclair, Calif., was not available for comment.

Inkjet cartridges provide a key portion of H-P's $6.2 billion annual profit, and the company regularly cracks down on companies it believes are infringing its patents.

Tuesday's settlement comes as H-P faces a new threat to its inkjet business. Photo giant

Eastman Kodak

(EK)

has announced plans to sell inkjet printers and replacement cartridges. Kodak says its technology will allow it to sell replacement cartridges for half the price of those available today.