HP sues Datel over chip fraud
| 26 June, 2014
Hewlett-Packard has launched a $30 million trade secrets suit in California federal court. According to Law360, HP is accusing Datel Holdings Ltd. of misappropriating HP's master key codes in its printers and selling ink cartridges compatible with HP printers, which are only supposed to authenticate HP ink cartridges.
HP claims Datel, whose subsidiaries design and develop microchips for use in printer cartridges — and make “cheat” products that video game players can use to beat games more easily — cracked the security used on its ink cartridge microchips.
Datel also allegedly shared the chips' design and configuration with other companies that make and sell printer cartridge chips, including chips for inclusion in clones of HP 930 and 950 printer ink cartridges.