Court Issues Injunction on HP Printer Offer

Hewlett-Packard Co. was ordered by a state judge to stop selling large-format inkjet printers below cost under a rebate program. San Francisco County Superior Court Judge David Garcia issued the order at the request of smaller rival Encad Inc., which sued Hewlett-Packard in January alleging unfair competition. Encad had claimed HP’s “Cash In & Trade Up” program violated state law by offering large-format printers to customers who traded in their Encad printers, sometimes “at no cost or even with cash back.”

The injunction stays in effect until a jury can resolve Encad’s claims, which are scheduled to go to trial in January. Encad is seeking $150 million in damages.

“HP intends to comply fully with the court order and is confident that upon fuller examination of its actions, HP will be found always to have been in full compliance with California law,” a company spokeswoman said. (Bloomberg News)

CMGI to Buy Online Ad Network: Internet investment company CMGI Inc. said it will buy online advertising network AdForce Inc. for $500 million in stock, in a deal that would further bolster CMGI’s Web marketing might. Under the definitive pact, Andover, Mass.-based CMGI, which buys and builds up Internet companies, would issue 0.262 of a share for each AdForce share.

Cupertino, Calif.-based AdForce makes products that allow advertisers and publishers to target, measure and analyze Internet advertising programs.

Investors cheered the deal, sending CMGI shares up $3.44 to close at $83.44 and AdForce shares up 75 cents to close at $20.25, both on Nasdaq. Closing of the merger is subject to formal approval by AdForce shareholders, which is expected later this year.