Canon U.S.A. Successfully Opposes Injunction Request By Former Dealer SymQuest Group, Inc.
MELVILLE, N.Y., September 24, 2015 - Canon U.S.A., Inc., a leader in digital imaging solutions, today announced that the U.S. District Court for the Eastern District of New York has denied a request made by SymQuest Group, Inc., a former authorized Canon retail dealer, for an injunction requiring Canon U.S.A. to continue providing spare parts, consumable supplies and technical support to SymQuest during a lawsuit filed by SymQuest against Canon U.S.A. in July 2015.
SymQuest, which markets business equipment in Northern New York, Vermont, New Hampshire and Maine, was acquired in June 2015 by Canon U.S.A.'s competitor, Konica Minolta Business Solutions U.S.A., Inc. Consistent with its long-standing policy of terminating its business relationships with authorized retail dealers acquired by its competitors, Canon U.S.A. exercised its contractual right to terminate SymQuest's authorized Canon retail dealership, and ceased all sales and service support to SymQuest.
SymQuest, now a wholly owned subsidiary of Konica Minolta Business Solutions U.S.A., Inc., responded by filing a lawsuit against Canon U.S.A. in federal court. SymQuest asserted that by ceasing its post-termination sales and service support to SymQuest, Canon U.S.A. violated the terms of the parties' retail dealer agreement and wrongfully interfered with SymQuest's ability to service its customers' machines. SymQuest requested that the federal court grant injunctive relief compelling Canon U.S.A. to continue providing SymQuest with spare parts, consumable supplies and technical support.
U.S. Magistrate Judge Stephen I. Locke, in a "thorough and extensive" opinion thereafter adopted by U.S. District Judge Leonard D. Wexler, found that the dealer agreement, in "clear and unambiguous" terms, justified Canon U.S.A.'s termination of its business relationship with SymQuest. The federal court held that SymQuest failed to "make a clear showing that it is likely to suffer irreparable harm" and that "[t]here is not a likelihood of success on any of [SymQuest's] claims." Accordingly, the court denied SymQuest's request for a temporary restraining order and a preliminary injunction, validating Canon U.S.A.'s well-established policy of declining to provide spare parts, consumable supplies and technical support to terminated retail dealers acquired by its competitors.
"We are gratified that the court has upheld our contractual right to terminate sales and service support to retail dealers that have been acquired by a competitor", said Seymour Liebman, Executive Vice President, General Counsel and Chief Administrative Officer of Canon U.S.A.
About Canon U.S.A., Inc.
Canon U.S.A., Inc., is a leading provider of consumer, business-to-business, and industrial digital imaging solutions to the United States and to Latin America and the Caribbean (excluding Mexico) markets. With approximately $31 billion in global revenue, its parent company, Canon Inc. (NYSE:CAJ), ranks third overall in U.S. patents granted in 2014† and is one of Fortune Magazine's World's Most Admired Companies in 2015. Canon U.S.A. is committed to the highest level of customer satisfaction and loyalty, providing 100 percent U.S.-based consumer service and support for all of the products it distributes. Canon U.S.A. is dedicated to its Kyosei philosophy of social and environmental responsibility. In 2014, the Canon Americas Headquarters secured LEED® Gold certification, a recognition for the design, construction, operations and maintenance of high-performance green buildings. To keep apprised of the latest news from Canon U.S.A., sign up for the Company's RSS news feed by visiting www.usa.canon.com/rss and follow us on Twitter @CanonUSA. For media inquiries, please contact firstname.lastname@example.org.
† Based on weekly patent counts issued by United States Patent and Trademark Office.