There are a number of possible causes of this.
1. Faulty chip on the cartridge, or badly fitted chip.
It will look obviously 'odd' if the chip is incorrectly fitted to such an extent that contact cannot be made between the cartridge chip and the printer. If it looks OK, and you still have the old cartridge, try swapping the chip (complete in its 'carrier') from the new one onto it. If the stays, it's the chip. Confirm this by putting the OLD chip back on the OLD cartridge, and you should get a different message telling you the catridge is empty.
2 Broken cartridge (I've seen quite a few like this - see pictures - the broken one had probably been dropped).
First picture - undamaged cartridge, note 'lug'.
Second picture - missing 'lug' (cartridge has probably ben dropped)
There is an opto sensor that checks the presence of the cartridge by 'looking for' this lug. The matching one at the other end of the cartridge has no effect.
It is possible to glue a broken lug back onto the cartridge, if the lug is missing, make something that matches the overall size and profile and glue that on - make sure the glue has set/hardened fully before putting the cartridge into the printer.
3 Faulty circuit board, or sensor in printer.
If you've tried the instructions under 1, and the error message stays the same through all the combinations of OLD chip, OLD cartridge, NEW chip, NEW cartridge, AND 2 is not applicable, this is where you are. It could be the opto sensor that 'looks' for the cartridge - you could 'short' this out (be careful to do this on the correct side of the device). Otherwise its a circuit board problem.