Media Sciences says Xerox sues it for patent violation

(Reuters) - Media Sciences International Inc. (GFX.A) on Monday said Xerox Corp. (XRX.N) filed a patent infringement suit against the maker of office color printer supplies, seeking unspecified damages, injunctive relief and fees.

The outcome of the litigation may have a material adverse effect on the company, Media Sciences said in a statement.

In its complaint, filed in a New York court, Xerox alleged that Media Sciences' solid inks designed for use in the Xerox Phaser 8500 and 8550 printers infringed four Xerox-held patents. The patents were related to the shape of the ink sticks, Media Sciences said.

The company said it did not infringe any valid U.S. patents and intended to defend the allegations.

"Media Sciences has competed with Xerox in this market for nearly a decade, and we are disappointed that Xerox has moved this competition from the marketplace into the courtroom," said Michael Levin, chief executive and president of Media Sciences.

The company said it considered Xerox's conduct a violation of their 2001 settlement, agreed after a litigation initiated by Media Sciences in 1999.

Media Sciences said it was evaluating all of its legal options, including possible counterclaims.

According to the company, the products related to the suit were introduced in December 2005 and represent less than 10 percent of its fiscal 2006 revenue.

(Reporting by Gopakumar Warrier in Bangalore)