Monday, 03 Nov 2014 09:47 GMT

Mystery of the broken Australian contract

An Australian printing machine manufacturer has had its contract with inkjet technology developer Memjet torn up according to Print21 of Sydney.

Andy McCourt of Print21 says: “No legitimate reason has been given and the contract was due to last up to 2017. It was signed between Memjet and Rapid in 2010 and Rapid was the first Memjet OEM to show a working Memjet-powered label press, at Ipex 2010. They have shipped over 250 presses, have back-orders, and their business depends on building Memjet-engined label presses.”

Print21 reports: “Memjet, the US company that in 2012 acquired the patent portfolio of Sydney-based Silverbrook Research relating to MEMS-based inkjet digital printing, has terminated its OEM partner agreement with Australia’s Rapid Packaging Services. The agreement has three more years to run until 2017.

Rapid told Print21 that there were liabilities as they paid in advance for the Memjet printheads, leaving the reasons as to why the contract was ended a mystery”

“Memjet refuses to say why the agreement was torn up citing commercial confidentiality. A Rapid spokesperson said they have not been given a legitimate reason why and that Memjet management will not negotiate, referring them only to their lawyers.”

Rapid told Print21 that there were liabilities as they paid in advance for the Memjet printheads, leaving the reasons as to why the contract was ended a mystery.

The publication quotes Memjet’s Kim Beswick as saying: “‘Although we regret that Rapid Labels is no longer an authorized Memjet partner, Memjet has over 30 OEM partners worldwide. It is only natural that there is some ebb and flow in our business relationships.’”

According to Print21, Rapid were concerned about their customers around the world no longer hav-ing back-up from Memjet, but Memjet are reported to have already chosen an unnamed competitor of Rapic to plug the gap. Plus of course the breaking of the contract would have serious ramifica-tions for Rapid. The magazine also reports that Memjet’s Beswick said there are ongoing negotia-tions between the two firms.


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