RFID maker Avery sues rival

Pasadenabased Avery Dennison Corp. sued rival Alien Technology Corp. on Thursday claiming patent infringement in the manufacture of labels encoded with radio frequency identification chips.

Avery, more well known for its labels and office supplies, filed two suits against Alien, charging the Morgan Hillbased competitor with selling RFID labels "that are assembled using a manufacturing process that directly infringes" Avery patents. Avery claims its tags are widely used throughout a range of industries from asset management to inventory tracking to supply chain management.

According to the lawsuit, Avery claims to have invented and patented technology to allow RFID chips and antenna to be produced in one label. The proprietary process, according to Avery, significantly reduces manufacturing costs of the RFID label.

Alien's RFID tags are manufactured by Tokyobased Toray Industries Inc. Avery sued Tokay last April over similar charges. In both cases, Avery makes the equipment that produces the chips used by Alien.

Avery is seeking monetary and injunctive relief against Alien.

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