Having found a few topics relating to the Epson C120 it seems that Epson are starting to take CIS kits a lot more seriously and adopting some of the same anti-ARC (Auto reset chip) approaches that HP have been adopting.
Looking at the C120 kit instructions for the MIS Associates and Ink Republic kits it seems the printer will not allow the chips to reset while they are still connected to or installed in the printer. MIS have solved this by telling users to reset by pulling the "empty" cartridge out and then reinserting, while Ink Republic seem to have gone one stage further and connected a little switch to their chips which essentially achieves the same thing.
No idea how well either approach works but you have to assume they do otherwise they'd have a lot of angry customers around now.
Does look like the war between the big printer manufacturers and CIS kit builders has hotted up though...
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Printers: (Canon) MP500/830, MX700, iP4000/4200/4300/4500/5200, iX4000(A3) (Epson) C84/86, D88, CX6600, R285/800/1900 (HP) K550, K850, K5400, L7680