Konica Minolta – Consolidated financial results for the six months ended September 30, 2018

(From April 1, 2018 to September 30, 2018)

All Pages: (PDF): 2q_2019fr_all

(1) Consolidated results of operations

(Percentage figures represent changes from the same period of the previous fiscal year.)

[Millions of yen]

Six months ended	Revenue		Operating profit		Profit before tax
September 30, 2018	517,087	5.9%	34,605	69.1%	33,157	74.0%
September 30, 2017	488,102	5.7%	20,466	10.4%	19,058	9.0%

[Millions of yen]

Six months ended	Profit for the period		Profit attributable to owners of the parent		Total comprehensive income
September 30, 2018	23,268	72.2%	23,334	72.6%	39,703	39.9%
September 30, 2017	13,512	0.2%	13,515	2.1%	28,378	–

Six months ended	Basic earnings per share	Diluted earnings per share
September 30, 2018	47.18 yen	47.03 yen
September 30, 2017	27.29 yen	27.22 yen

(Note)Basic earnings per share and diluted earnings per share are calculated based on the profit attributable to owners of the parent.

(2) Consolidated financial position

[Millions of yen]

As of	Total assets	Total equity	Equity attributable to owners of the parent	Equity ratio attributable to owners of the parent
September 30, 2018	1,246,188	565,517	554,962	44.5%
March 31, 2018	1,203,907	535,588	524,513	43.6%

2. Dividends per share

[yen]

	End of the three-month period	End of the six-month period	End of the nine-month period	End of the year	Total
Fiscal Year ended March 31, 2018	–	15.00	–	15.00	30.00
Fiscal Year ending March 31, 2019	–	15.00
Fiscal Year ending March 31, 2019 (forecast)			–	15.00	30.00

(Note)Changes from the latest dividend forecasts: None

3. Consolidated forecasts for the fiscal year ending March 31, 2019 (From April 1, 2018 to March 31, 2019)

(Percentage figures represent changes from the previous fiscal year.)

[Millions of yen]

For the year ending	Revenue		Operating profit		Profit attributable to owners of the parent		Basic earnings per share
March 31, 2019	1,080,000	4.7%	64,000	18.9%	40,000	24.0%	80.88 yen

(Note)Changes from the latest consolidated forecasts: Yes

Notes

1. Changes in important subsidiaries during the six months ended September 30, 2018 (changes in the scope of consolidation): None
2. Changes in accounting policies or changes in accounting estimates
   1. Changes in accounting policies required by International Financial Reporting Standards (IFRS): Yes
   2. Changes in accounting policies other than the above a.: None
   3. Changes in accounting estimates: None
3. Number of issued and outstanding shares (common stock)
   1. Number of issued and outstanding shares (including treasury shares)
      As of September 30, 2018: 502,664,337 shares
      As of March 31, 2018: 502,664,337 shares
   2. Number of treasury shares
      As of September 30, 2018: 8,083,681 shares
      As of March 31, 2018: 8,175,975 shares
   3. Average number of issued and outstanding shares during the period
      The six months ended September 30, 2018: 494,534,363 shares
      The six months ended September 30, 2017: 495,268,240 shares

Konica Minolta, Inc. (the “Company”) has established the Board Incentive Plan trust in which beneficiaries include Directors, Executive Officers, Group Executives, and Technology Fellows. The shares owned by the trust account relating to this trust are accounted for as treasury shares (1,250,538 shares as of September 30, 2018, and 1,274,000 shares as of March 31, 2018).

This summary of quarterly consolidated financial results falls outside the scope of quarterly review procedures to be performed by certified public accountants or an audit firm.

Explanation concerning the appropriate use of the forecasts for results of operations and other special matters

(Note on the forecasts for the consolidated financial results)

The forecasts for results of operations in this report are based on information currently available to the Company and its subsidiaries (the “Group”), and assumptions determined to be reasonable, and are not intended to assure achievement of the Group’s operations. Actual results may differ significantly from the forecasts due to various factors. For further details of the assumptions and other factors considered by the Company in preparing the above forecasts, refer to “1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018, (3) Explanation Regarding the Forecasts for the Consolidated Financial Results” in the attached Supplementary Information on page 8.

Supplementary information for the quarterly financial results and briefing on the quarterly financial results

The Company will hold a briefing on the quarterly financial results for institutional investors on Tuesday, October 30, 2018. The proceedings and details of the briefing, along with the supplementary information on the quarterly financial results to be presented at the briefing, will be posted on the website of the Group soon after the briefing.

Konica Minolta Wins Good Design Award 2018 for Five Products Including the Cosmo Leap Σ, an Optical Planetarium, Selected for the Good Design Best 100

Tokyo (October 25, 2018) – Konica Minolta, Inc. (Konica Minolta) is pleased to announce that the company has been awarded the Good Design Award 2018 by the Japan Institute of Design Promotion (JDP) for five products.
Among these award-winning products, the Cosmo Leap Σ, an optical planetarium, has been selected as one of the Good Design Best 100 products and also included on the list of My Favorite Choice for Good Design 2018, the Good Design Award 2018’s jury’s personal selections. This confirms that the jury appreciated Konica Minolta’s focus on product design and quality.

Cosmo Leap Σ, Winner of the Title, Good Design Best 100 in Good Design Award 2018

A versatile optical planetarium designed for precise reproduction of beautiful stars

Features of the Design

With its compact structure incorporating optical technology, the product is designed to blend harmoniously with cosmic space.

Comments from Screening Committee of JDP

While most products cover their structures with some materials, the planetarium is exposed. Its mechanical appearance, made of optical and precision components, appeals to people, especially children. Since the moving parts of the star ball and planet projector follow the movement of the night sky (movement of the Earth), the orderly structure of this precision machine makes children aware that cosmic space is also regularly structured. This aspect of the product was also highly regarded by the jury.

Konica Minolta Products That Have Won the Good Design Award 2018

• Kunkun body, a body odor measuring and visualizing device
• SONIMAGE MX1/SNiBLE yb, a diagnostic ultrasound system
• CA-410, a color analyzer for measuring displays
• Konica Minolta Planetarium TENKU in Tokyo SKYTREE TOWN®

Kunkun body, a Body Odor Measuring and Visualizing Device

The world’s first solution for measuring and visualizing types and levels of mouth and body odors

Features of the Design

Designed for sanitation, cleanliness and peace of mind, this product was developed with the concept that taking care of body odors is part of personal grooming. The device is easy to hold and non-slippery, and fits securely in the hand, while the app has a professional, scientific look and feel.

Comments from Screening Committee of JDP

In recent years, so-called ‘smell harassment’ caused by body odors has become a social problem. However, it is difficult to detect one’s own body odors, and people hesitate to ask others about their own odors. This device solves this delicate problem by enabling users to recognize their body odors in numerical scores and objectively decide whether they need to take action to reduce their odors. By measuring body odors, this device gives users more confidence and reduces anxiety about body odors. The jury highly regarded this product for its novelty that reflects today’s needs, as well as its easy-to-carry design.

SONIMAGE MX1/SNiBLE yb, a Diagnostic Ultrasound System

A diagnostic ultrasound system is compact with exceptional image quality

Features of the Design

Designed to be as compact and lightweight as carry-on luggage and equipped with a charging cradle and a large handle, this product is highly portable.

Comments from Screening Committee of JDP

The jury highly evaluated this product for its usability in so many medical settings and wondered why such a product had not been available before. The jury was particularly impressed by the successful development of a diagnostic ultrasound system that is more compact, sophisticated, and safer and easier to use than preceding models for medical professionals and patients.

CA-410, a Color Analyzer for Measuring Displays

A product designed for measuring ever-evolving displays such as OLED displays

Features of the Design

Designed optimally for professional use, this optical device can be used in various measuring environments, and has an excellent texture and robustness.

Comments from Screening Committee of JDP

The simple and functional design of this product conveys a sense of high measuring accuracy. The data processor is far more compact than that of preceding models and the device is highly portable. Both the data processor and the probe are black, which gives this optical measuring instrument a sense of unity. The neat alignment of the probe connection terminals on the back is also impressive. The highly-legible original font and well thought-out user interface design, as well as the simple operation thanks to the automatic zero calibration function, help streamline the measuring process and increase efficiency at factories. For these reasons, the jury concluded that this product is well designed to meet the needs of developers of ever-evolving high-resolution displays.

Konica Minolta Planetarium TENKU in Tokyo SKYTREE TOWN®

A one-time miracle taking place in the planetarium theater

Features of the Design

Designed with the concept of Magic Blue, the planetarium allows visitors to enjoy views of the night sky that changes with time.

Comments from Screening Committee of JDP

While renovations usually focus on upgrading equipment and refurbishing the space, the renovation of TENKU focused on introducing 3D audio effects and the latest projection systems, and making the planetarium show more enjoyable. This fact was highly appraised by the jury. The change from the sky at dusk to the starry night sky reflects the concept of TENKU, Magic Blue, allowing visitors to not only appreciate views of the starry sky, but also enjoy stories and learn about the stars. The company has succeeded in adding new value to the planetarium experience.

Features of the Award-Winning Products

Cosmo Leap Σ, an Optical Planetarium

Standing just 2.5 m tall and occupying 1 m2, the Cosmo Leap Σ is one of the world’s most compact planetariums with a built-in planet projector. Despite its size, the product is packed with functions for showing detailed narratives of the starry skies, backed by Konica Minolta’s cutting-edge optical, micromachining, and machine control technologies. Konica Minolta was the first in the world to succeed in building 80 projections, including 62 constellation images, 5 constellation lines, and 13 sky markers such as the Summer Triangle, into a star ball.
The Cosmo Leap Σ is used in planetariums throughout the world, including the Okayama Astronomical Museum, and will be installed in Konica Minolta Planetaria TOKYO to be opened in Yurakucho in December 2018.

For more information:
https://www.konicaminolta.com/planetarium/hard/planetariums/cosmo_leap_sigma/index.html

Kunkun body, a Body Odor Measuring and Visualizing Device

Kunkun body is a body odor measuring solution which simply consists of a measuring device and a smartphone app. It can detect, identify, and measure mouth odor, sweaty smell, old-aged-smell, and middle-aged-oily odor, and quantify the measured odors using our proprietary system. The levels of the odors are then displayed in the smartphone app as numerical scores and as a graph, allowing users to objectively decide whether they need to do something about their odors or not.

SONIMAGE MX1/SNiBLE yb, a Diagnostic Ultrasound System

Despite its lightweight, compact body, this product delivers high-quality imaging. This easy-to-carry diagnostic ultrasound system ensures diagnostic precision in any clinical setting. SNiBLE yb is ideal for orthopedic use, including outpatient treatment, on-the-spot examination by sports doctors, and monitoring of patients’ rehabilitation progress.

For more information:
https://www.konicaminolta.com/newsroom/2018/0316-01-01.html

CA-410, a Color Analyzer for Measuring Displays

The CA-410 is an optical measuring device designed for use at factories producing TV and smartphone displays. This product performs high-speed, accurate measurement of higher-dynamic range (HDR) displays, including OLED displays, from extremely low to high luminance, thus improving productivity and enhancing the rich graphic expression of ever-evolving displays.

For more information:
https://sensing.konicaminolta.asia/product/color-analyzer-ca-410

Konica Minolta Planetarium TENKU in Tokyo SKYTREE TOWN®

TENKU opened on May 22, 2012 as a directly-managed planetarium of Konica Minolta, a planetarium manufacturer. The award-winning renovation of TENKU in 2017 focused on introducing the latest 3D audio effects and projection systems as well as premium seats based on the concept of Magic Blue. Following its renovation, TENKU is a new entertainment facility where each visitor can experience the unfolding miracles of the universe.

For more information:
https://planetarium.konicaminolta.jp/tenku/foreigner/

About the Good Design Award

The Good Design Award is a comprehensive design award program run by the JDP which aims to highlight and commend outstanding designs around us in the pursuit of prosperous lives and industrial and social development.
This program has a history of more than 60 years since its creation in 1957 by the Ministry of International Trade and Industry (present-day Ministry of Economy, Trade and Industry) under the name, Good Design Selection System, which was more widely known as the G Mark System.
From among all the Good Design Award winners, Good Design Best 100 products are selected, from which the jury then selects Good Design Gold Award winners, finalists (candidates for Grand Award) and Good Focus Award winners. The Good Design Grand Award winner is selected from among the candidates for Grand Award by the jury and the Good Design Award winners of the year.

Ink Used In Konica Minolta’s AccurioJet KM-1 Complies With FDA Guidelines

UltraViolet Ink Passes A Range Of Environmental Condition Tests

Konica Minolta has announced that it has passed Food and Drug Administration (FDA) tests for UV Ink used on the company’s AccurioJet KM-1 digital press in the printing of packaging for food & beverage, health & beauty aids and pharmaceutical & nutraceutical products that come under the guidance and oversight of the Administration.

Toxicology risk assessment tests, conducted in accordance with FDA regulations at certified laboratories, and validated by the Underwriters Laboratories, concluded that the UV ink used by the AccurioJet KM-1 on consumer product packaging materials was considered safe for indirect food contact.

As part of the certification process, the UV ink was tested under a range of environmental conditions that mimicked potential consumer applications and storage. This included labels and packaging materials subjected to room temperature, refrigeration, freezing temperatures, and microwave or oven heat – passing all FDA requirements for ink used on packaged goods.

“This certification provides an extra level of assurance to our industrial print customers, as well as to consumers, that the ink used in our AccurioJet KM-1 press is safe when used on a variety packaging materials and under a full range of storage conditions,” said Bill Troxil, senior vice president, strategic business development at Konica Minolta.

 

Konica Minolta Receives BLI PaceSetter Award For The Legal Vertical

First-Ever Category Award Recognizes Company’s Software and Solutions

Konica Minolta has announced they are a winner of Keypoint Intelligence’s BLI PaceSetter 2018-2019 Award for the Legal vertical market.

This is the first-ever PaceSetter award granted in this vertical, recognizing those vendors that offer the most impressive portfolios of devices, solutions and services for the Legal market. Key areas that were evaluated included: Hardware, Software, Service and Support, Professional Services, Security, Industry Certifications, and Vertical Leadership.

“In addition to its legal-specific software portfolio that features class-leading solutions from noted industry partners, Konica Minolta demonstrated industry leadership by offering IT services and support specifically tailored for their legal customers large and small,” explained Jamie Bsales, director of software analysis for Keypoint Intelligence – Buyers Lab. “Moreover, the bulk of the company’s software and services offerings are available in both the direct and dealer channels.”

The BLI PaceSetter award is based on in-depth research conducted with participating document imaging OEMs and Keypoint Intelligence’s expert analysis of each vendor’s offerings for the target market.

“We are honored to be a recipient of this prestigious award, especially in its debut year,” said Nick Pegley, senior vice president, Solutions and Services, and deputy general manager, Digital Workplace Business Unit at Konica Minolta. “Keypoint Intelligence’s Buyers Lab is recognized as a leading independent evaluator of document imaging software, hardware, and services, and this award further confirms Konica Minolta’s value-proposition in meeting the software and business solutions needs of the Legal profession.”

About Buyers Lab PaceSetter Awards

Based on exhaustive questionnaires, in-depth interviews, and a proprietary rating scale, Buyers Lab PaceSetter awards recognize those document imaging OEMs that have shown market leadership in a variety of categories, including Document Imaging Security, MFP Platforms & App Ecosystems, Mobile Print, and key vertical markets such as Healthcare, Education, Financial Services, Legal, Retail, Manufacturing, and Logistics.

Konica Minolta MFPs Safeguards Data Against Hackers

Konica Minolta has announced results from an extensive security test of Konica Minolta’s bizhub line of multifunction printers (MFPs) against hacking attempts. The tests, conducted by NTT DATA Services, an internationally respected IT services provider, concluded that the printers are well-fortified against security breaches.

The hacking of vital, confidential information is a risk businesses face daily on a global level. To address this concern, Konica Minolta engaged NTT DATA Services and NTT Security to conduct multiple hacking attempts on the company’s popular bizhub line of MFPs to allay customers’ fears against hacking intrusions.

As part of the security test, multiple efforts were made to access the operating system of the MFPs by trained experts. This included attempts to access data stored on the hard drive, infiltration of the network via the MFPs, as well as the fax port and USB drive. All attempts to extract any data failed and the privacy of the stored information remained intact.

“The validation of our MFPs by a respected global security expert confirms the MFPs are well-fortified against hacking attacks, including brute-force tactics,” noted Dino Pagliarello, vice president, product management & planning at Konica Minolta. “The number of questions received from our partners and customers regarding the security of our MFPs has since dropped from a few times per week to zero since NTT DATA Services and NTT Security performed these tests,” Pagliarello added.

About NTT DATA Services

NTT DATA Services partners with clients to navigate and simplify the modern complexities of business and technology, delivering the insights, solutions and outcomes that matter most. We deliver tangible business results by combining deep industry expertise with applied innovations in digital, cloud and automation across a comprehensive portfolio of consulting, application, infrastructure and business process services.

NTT DATA Services, headquartered in Plano, Texas, is a division of NTT DATA Corporation, a top 10 global business and IT services provider with 118,000+ professionals in more than 50 countries, and NTT Group, a partner to 88 percent of the Fortune 100. Visit nttdataservices.com to learn more.

About NTT Security

NTT Security is the specialized security company and the center of excellence in security for NTT Group.  With embedded security we enable NTT Group companies to deliver resilient business solutions for clients’ digital transformation needs.  NTT Security has 10 SOCs, seven R&D centers, over 1,500 security experts and handles hundreds of thousands of security incidents annually across six continents.

Konica Minolta Premiers New Wide Format Press Technology At SGIA Expo

AccurioWide 200 Makes Its Debut At Leading Graphic Imaging Show

Konica Minolta is excited to announce its expanded offerings for the Graphics and Imaging industry, further demonstrating the company’s commitment to excellence in this space. Toward the goal of consolidating Konica Minolta’s value proposition, several, new wide format printers are being displayed and demonstrated at the Specialty Graphic Imaging Association (SGIA) 2018 Expo in Las Vegas, October 18-20, at Booth # 3769.

Additionally, sign and display workflow software, designed to increase owner/operator efficiency and lower overhead costs, will be on the floor. Together, the printers and software exhibited will demonstrate the superior image quality produced using Konica Minolta-branded technology. For the AccurioWide 200 hybrid UV LED inkjet printer – this will be the first time this printer had been publicly displayed.

“This is Konica Minolta’s first participation at SGIA, and we’re looking forward to the feedback we receive from our current and potential future customers, said Dino Pagliarello, vice president, product management & planning at Konica Minolta. “Our wide format printers, using our industry-leading inkjet printhead technology, produce superior quality images while reducing the cost of ownership through features that yield considerable savings on reduced consumables,” Pagliarello added.

The AccurioWide 200 hybrid UV LED printer offers the flexibility and ease of printing on rigid and flexible materials up to 1.77 inches in thickness and 6.7 feet wide. Utilizing Konica Minolta 1024i printhead nozzle technology, images can be produced in six colors including white, maintaining perfectly vivid and bright colors throughout a print run.

For Konica Minolta, the SGIA Expo is an ideal venue to demonstrate wide format technology. At SGIA, an estimated 20,000 graphic industry professionals, many of whom are leaders in this field, are looking to grow their business in new market segments through the adoption of the latest printing technologies.

In addition to the AccurioWide 200, Konica Minolta is proud to showcase the following at SGIA:

• The AccurioWide 160 – the first Konica Minolta UV wide-format printer was first displayed last month at Print 18. Using Konica Minolta’s renowned inkjet printhead technology, this press prints using a six color process and white ink on a variety of roll, board and sheet substrates up to 1.6 meters wide.

• The PLS-475i Digital Inkjet Label Press – represents the latest Memjet Versapass ink and printhead technology. This press supports continuous-roll and pre-die cut media up to 9.5 inches in width. It’s designed for users with production requirements including convertors, brand owners and commercial printers.

• The COLEX SharpCut – can precisely cut out multiple images printed on a single substrate, including foam board, wood and textile/fabric. A short video demonstration of this print and cut technology can be viewed here.

• The AccurioPRO WideDirector Production Workflow solution software is a compressive, end-to-end production workflow for Sign and Display jobs. With built-in “Preflight and Correction” for reliable, accurate first-time-out prints, this solution is a true workflow hub for multiple engines and operators.

Lastly, visually stunning print samples from Konica Minolta’s impressive AccurioJet KM-1 inkjet press will be displayed and made available at the booth. Konica Minolta representatives present at the expo are eager to share the capabilities of this outstanding digital press.

Mondi unveils premium multifunctional paper

 

Mondi is launching a new product for their flagship brand Color Copy.

Targeted for the office paper segment, “Color Copy Go Office” is a newly developed, best-in-class multifunctional product for high contrast colours. Color Copy Go Office offers a high whiteness paired with the smoothness for which Color Copy is known, according to Mondi.

It is the first product in the Color Copy portfolio explicitly guaranteed for both laser and inkjet printing, featuring ColorLok technology to ensure bold blacks, vivid colours and quick drying. As with all Color Copy products, Color Copy Go Office comes with Mondi’s 100 percent satisfaction guarantee.

“Almost 30 years ago, we invented the colour laser paper with Color Copy. With last year’s redesign of our packaging, we started a journey to become the perfect paper for digital colour printing – inkjet included. Color Copy Go Office is the first step in this direction. In terms of positioning among high white multifunctional papers for high contrast printing, it is the best office paper we offer today. It perfectly complements our flagship brand Color Copy as the premium paper solution for full colour printing with the widest colour gamut and incomparably consistent top quality”, says Johannes Klumpp, Marketing and Sales Director at Mondi Uncoated Fine Paper. 

 Earlier this year a new range of digital formats were announced for Color Copy, valid for all of Mondi’s sales partners around the world. For all other future innovations and portfolio extensions under the Color Copy brand, including the introduction of Color Copy in 80 g/m² as well as new banner formats, the company says there is a new and (semi-) exclusive distribution strategy in place. This means that all new developments are available at selected Color Copy Evolution Partners only.

Europapier will be Mondi’s partner in Austria and Russia, Igepa and Papyrus in Germany, Augusto Berni, Comunica, Officart and Polyedra in Italy, Premier Paper in UK and Papyrus in Benelux, with discussions on-going in several other countries.

“In 2019 we will be celebrating the 30^th anniversary of Color Copy and will have more news to share related to the diversification of the brand portfolio. Stay tuned for more details in early 2019,” explained Klumpp.

Color Copy Go Office is available in A4 and A3 and 80, 90, 100 as well as 120 g/m² , featuring new easy-open reams for all Modni’s A4 products in 80, 90 and 100 g/m2 and improved box strength. For optimal presentation, easy handling and a tidy office space, Mondi says all A4 products can be ordered in shelf-ready boxes. Color Copy Go Office is produced in the Mondi Neusiedler mill and is offered with FSC and EU Ecolabel certification.

For more information go to www.mondigroup.com.

B4H Special October 31, Breakfast: TB and Children

B4H: TB and HIV present a very special October Breakfast
with guest speaker:
Dr Henry Welch: TB & Children in PNG

Dr Henry Welch came to PNG with the Baylor College of Medicine-Texas Children’s Hospital. Together, with The National Department of Health, and UPNG School of Medicine and Health Sciences they have made progress in the treatment of children with TB.

Many programs actively concentrate on adults with TB as they are the group that primarily transmits TB. Unfortunately, this means children often get left behind. Children are more susceptible to TB and more likely to die.

In the face of an increasing number of children presenting with multi drug-resistant TB (MDR-TB) the team have created new national paediatric TB guidelines. They have started TB prophylaxis to eligible children under 5 years of age, and have helped PNG implement a new child-friendly TB medication into the country, making it the 1st high-burden TB country to do so and the 4th country world-wide.

Join us to learn a little more about TB, TB in Children, and meet some nice people
Businesses for Health Team: Ann, Nerrie, Sonia, Lorrie and Illie

WHEN: Wednesday October 31
WHERE: RPYC
TIME: 06:57 – 09:00
COST: K50
K10 of your breakfast fee will go directly to support the children’ treatment program at PoM Gen.

We expect to raise about K400 to buy contrast die for Head CT scans that families cannot afford. One vial cost around K100. A vial can be used for 2 kids.

Door prizes from Travel Planners.
If anyone would like offer more door prizes for this special event please drop us a line.

 

 

Become an annual subscriber to Businesses for Health today.
We help you to:
• prevent TB
• respond rapidly to every case of TB in your workplace or family
• train and support your TB and HIV response team

 

Dr Ann Clarke Project Manager
Businesses for Health: Tuberculosis

 

http://www.businesses4health.com
Facebook @B4HTB
Instagram #coveryourcough
Toll-Free TB Info Line 7676 2482

Businesses for Health: TB & HIV · POMCCI office · Musgrave Street · Port Moresby, NCD 111 · Papua New Guinea

Printer Makers Are Crippling Cheap Ink Cartridges Via Bogus ‘Security Updates’

Epson is just the latest company to wage covert war on consumer choice.

Image: Shutterstock

Printer maker Epson is under fire this month from activist groups after a software update prevented customers from using cheaper, third party ink cartridges. It’s just the latest salvo in a decades-long effort by printer manufacturers to block consumer choice, often by disguising printer downgrades as essential product improvements.

For several decades now printer manufacturers have lured consumers into an arguably-terrible deal: shell out a modest sum for a mediocre printer, then pay an arm and a leg for replacement printer cartridges that cost relatively-little to actually produce.

Unsurprisingly, this resulted in a booming market for discount cartridges and refillable alternatives. Just as unsurprisingly, major printer vendors quickly set about trying to kill this burgeoning market via all manner of lawsuits and dubious behavior.

Initially, companies like Lexmark filed all manner of unsuccessful copyright and patent lawsuits against third-party cartridge makers. When that didn’t work, hardware makers began cooking draconian restrictions into printers, ranging from unnecessary cartridge expiration dates to obnoxious DRM and firmware updates blocking the use of “unofficial” cartridges.

As consumer disgust at this behavior has grown, printer makers have been forced to get more creative in their efforts to block consumer choice.

HP, for example, was widely lambasted back in 2016 when it deployed a “security update” that did little more than block the use of cheaper third-party ink cartridges. HP owners that dutifully installed the update suddenly found their printers wouldn’t work if they’d installed third-party cartridges, forcing them back into the arms of pricier, official HP cartridges.

Massive public backlash forced HP to issue a flimsy mea culpa and reverse course, but the industry doesn’t appear to have learned its lesson quite yet.

The Electronic Frontier Foundation now says that Epson has been engaged in the same behavior. The group says it recently learned that in late 2016 or early 2017, Epson issued a “poison pill” software update that effectively downgraded user printers to block third party cartridges, but disguised the software update as a meaningful improvement.

The EFF has subsequently sent a letter to Texas Attorney General Ken Paxton, arguing that Epson’s lack of transparency can easily be seen as “misleading and deceptive” under Texas consumer protection laws.

“When restricted to Epson’s own cartridges, customers must pay Epson’s higher prices, while losing the added convenience of third party alternatives, such as refillable cartridges and continuous ink supply systems,” the complaint notes. “This artificial restriction of third party ink options also suppresses a competitive ink market and has reportedly caused some manufacturers of refillable cartridges and continuous ink supply systems to exit the market.”

Epson did not immediately return a request for comment.

Activist, author, and EFF member Cory Doctorow tells Motherboard that Epson customers in other states that were burned by the update should contact the organization. That feedback will then be used as the backbone for additional complaints to other state AGs.

“Inkjet printers are the trailblazers of terrible technology business-models, patient zero in an epidemic of insisting that we all arrange our affairs to benefit corporate shareholders, at our own expense,” Doctorow told me via email.

Doctorow notes that not only is this kind of behavior sleazy, it undermines security by eroding consumer faith in the software update process. Especially given that some printers can be easily compromised and used as an attack vector into the rest of the home network.

“By abusing the updating mechanism, Epson is poisoning the security well for all of us: when Epson teaches people not to update their devices, they put us all at risk from botnets,

ransomware epidemics, denial of service, cyber-voyeurism and the million horrors of contemporary internet security,” Doctorow said.

“Infosec may be a dumpster-fire, but that doesn’t mean Epson should pour gasoline on it,” he added.

 

Article originally published on Motherboard 16th October 2018.

Author: Karl Bode

OPTIMISM ABOUNDS IN THE PRINTING INDUSTRY WITH RECENT GLOBAL TRENDS REPORT

drupa recently published its The 5th drupa Global Trends Report, and this year’s report outlines the most optimistic trends drupa has ever published. As the global economy continues to recover, both printers and suppliers are confident about the future of the printing industry.  

This year’s Global Trends Report surveyed 708 printers and 234 suppliers. Of those surveyed, 40 percent of printers and 56 percent of suppliers described the state of their business as “good,” compared with only 9 percent and 5 percent of respondents who are somewhat worried about the future and claimed their business to be “poor.”

As economic confidence continues to grow, so do the capital expenditures of printers and suppliers. And when printers choose to invest, they are investing in digital printing. Printing with electrophotography or inkjet machines are the most widespread processes these days. Thirty percent of respondents claimed that more than a fourth of their turnover is the result of digital printing technology.

Developments in inkjet technology are driving this adoption. The speed, quality, and total cost of ownership of inkjet printing have evolved to be a mature and stable process. Today’s inkjet printers are capable of producing high-quality images on a range of different substrates with customization in any run length at extremely fast print speeds.

These developments are contributing to a new trend: printers are finding competitive opportunities for inkjet in all market segments, including packaging, labeling, commercial, and mailing.  

Equally important is that printers are finding they can apply inkjet in multiple markets, creating the opportunity to enter new markets not in their traditional core sector. Participants in the drupa survey reported strong growth in all sectors, but the more specialized the market, the higher the growth rate.  

WHAT DOES THIS MEAN FOR YOUR BUSINESS?

In his recent blog post, industry analyst Marco Boer stated:

“The commercial print industry has turned the corner: data driven personalization and programmatic marketing campaigns across all print applications are becoming a requirement, not a luxury. Production inkjet is a core part of this requirement, and its growth as a technology is critical to the long-term prosperity of the commercial print industry.”

Achieving that prosperity requires printers to understand that the integration of digital communication is no longer a threat. A study conducted by the firm TrueImpact, found that a “multi-channel approach that leverages the unique benefits of paper with the convenience and accessibility of digital will perform best.” According to the report, print was easier to process mentally and tested better for brand recall.    

And that’s where inkjet thrives, enabling printers to make the connection between printed communications and the digital world requires a level of customization that inkjet enables.

As printers and other businesses look to the future, it’s clear that opportunity abounds, and that inkjet technology is the critical resource needed to capture it.

As a digital inkjet tech insider, here are key takeaways you should consider:

-Digital inkjet adoption is driving new competitive opportunities for printers in all market segments, including packaging, labeling, commercial, and mailing.  

-Digital inkjet printers report strong growth in new markets, and the more specialized the market, the higher the growth rate.  

-A multi-channel approach that leverages the benefits of paper with the convenience and accessibility of digital will perform best. Print is scientifically proven to produce better brand recall in the human brain.

To read an executive summary of the full drupa report, Click Here 

 

 

 

Taken from an article written by Kevin Shimamoto