[GRRN] Camera Recycling Nixed by Fuji

Wed, 30 Jun 1999 16:47:30 EDT

Thought this might be of interest to those of you who wondered about "single
use" cameras and what happens to them.

-David Biddle

Jazz Photo Announces Fuji Film Lawsuit

CARTERET, N.J.--(BUSINESS WIRE)--June 30, 1999--Jazz Photo Corp.,
announced today that it had been served on June 25th, 1999 in an action
commenced by Fuji Photo Film Co., Ltd. Of Tokyo, Japan, against Jazz, its
Hong Kong subsidiary, Jazz Photo (Hong Kong) Limited, and Jack C. Benun, a
consultant to both companies, in the United States District Court for the
District of New Jersey (99-2937 (NHP)).

Mr. Lorenzini, President of Jazz, stated that this action, which was
announced by Fuji prior to its commencement, makes the same infringement
claims with respect to the same patents which were at issue in a proceeding
brought on the complaint of Fuji's U.S. affiliate by the International Trade
Commission against Jazz and 26 other unrelated respondents. Orders applicable
to Jazz in that proceeding have been stayed and are on appeal.

The ITC action sought to bar the importation and sale of recycled single
use cameras embodying alleged Fuji technology. In that proceeding the
decision of the Administrative Law Judge was affirmed by the full Commission
and orders barring the importation, distribution and sale of recycled single
use cameras using alleged Fuji technology were issued on June 2, 1999 against
all respondents. Jazz immediately secured a temporary stay of enforcement of
these orders from the U.S. Court of Appeals for the Federal Circuit and is
appealing the ITC's decision.

Mr. Lorenzini pointed out that, while absent the stay, the ITC's orders
would be currently effective, the orders are subject to review by the
President, who may disapprove them.

He said the Presidential review period ends August 2, 1999. Thus, Mr.
Lorenzini stated, the Fuji press release might lead readers to mistakenly
conclude that Fuji had succeeded before the ITC. In fact, Jazz has secured a
stay and the President has not acted.

Mr. Lorenzini indicated that the U.S. District Court action, unlike the
ITC proceeding, seeks to enjoin the manufacture, distribution and sale of
single use cameras, whether produced domestically or imported, and whether
newly manufactured or reloaded, based on patent infringement claims and seeks
a preliminary and permanent injunction and damages in the form of lost

He stated, however, that Jazz believes this new action is just part of
Fuji's continuing effort to drive the reloaders of single use cameras made
from disposable camera shells and their distributors out of business.

Mr. Lorenzini reiterated Jazz's position that ample legal grounds exist
to appeal the Commission decision and that he was confident that, ultimately,
the U.S. Court of Appeals for the Federal Circuit would find the importation
and sale of reloaded, recycled single use cameras made from camera bodies
originally manufactured by Fuji or other licensed manufacturers, is a lawful
business activity. He stated that he believed the determination of the ITC
was an unwarrented extension of the narrow legal monopoly granted to patent
holders. He said that Jazz would continue its appeal, seek a permanent stay
of the ITC's orders and of the recent U.S. District Court action pending the
decision of the U.S. Court of Appeals for the Federal Circuit.

Jazz, based in Carteret, NJ, is a leading importer and distributor of
conventional 35mm APS and zoom cameras and single use cameras to mass
merchandisers in the United States and Canada. For further information, Jazz
Photo can be contacted by phone at (732)499-7945 and by fax at (732)499-7348.
The company's address is 600 Blair Road, Carteret, NJ 07008.

--30--jb/ny es/ny


Jazz Photo Corp.

Roger Lorenzini

President & CEO