Avery files lawsuit over ID chips

Label maker Avery Dennison Corp. sued Japanese rival Toray International Inc. over chips embedded in clothing and other products to manage supplies and cut down on shoplifting.

Pasadena-based Avery alleges that Toray’s chips infringe a patent it owns for radio-frequency identification devices.

Avery also said it inked a pact to supply RFID chips to Motorola Inc.