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Lexmark Wins Injunction in Toner Cartridge Suit 557

goingincirclez writes "Cnet reports that Lexmark has won an injunction against Static Control Components, Inc., which effectively prohibits the manufacture of recycled / third party toner cartidges. Slashdot covered the initial filing of the suit. SCC also has a rebuttal site that definitely warrants checking out. I would like to think that other printer manufacturers won't follow suit, but I'm not that naive. Better start your trust fund for ink cartridges."
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Lexmark Wins Injunction in Toner Cartridge Suit

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  • by Alderete ( 12656 ) <slashdot AT alderete DOT com> on Friday February 28, 2003 @02:26PM (#5407687) Homepage
    While I'm certainly not a fan of the DMCA, I'm not sure this is a poor decision by the courts, etc. I think that it's probably reasonable for Lexmark to be able to forbid third-parties from selling supplies, if that's a business decision they want to make.

    However, I don't think that, even if they ultimately win this case all the way up the line, that this is a winning business strategy. I certainly am not going to buy a printer that is tied exclusively to the manufacturer.

    This can't be good publicity for Lexmark; every story is explaining that the manufacturer's supplies are more expensive. That's got to have consumers thinking about buying from HP, or Epson, or whomever.

    I think this is a classic case of shooting yourself in the foot, and then sueing for the privilege of doing so again.
  • by digitalgimpus ( 468277 ) on Friday February 28, 2003 @02:28PM (#5407694) Homepage
    I wish HP would create a universal cartridge, that just held ink. The head were separate.

    Would keep inc prices low, hence make their products enticing... and they can keep whatever patents they want to themselves.

    A cartridge should just hold ink.
  • by Anonymous Coward on Friday February 28, 2003 @02:29PM (#5407711)
    Lexmark owns the technology for their printing systems. _They_ developed how ink gets spit out and put on the paper. _They_ are the ones who developed the drivers for their machines.

    _They_ did not give permission for anyone else to manufacture a product which will work with their printers. That would mean licensing which is not taking place.

    If you don't like a businesses policies, don't buy from them. Don't bitch at them when they're trying to protect something _they_ developed.
  • by seanadams.com ( 463190 ) on Friday February 28, 2003 @02:31PM (#5407736) Homepage
    I bought their Optra C710 color laser about a year. I thought I was getting a deal at $1200, but it is the worst printer I have ever owned.

    It came with all toner cartridges only 25% filled. This was not mentioned anywhere on the box or on the web site where I ordered.

    The printer has actually functioned maybe half of the time that we've owned it. Two on-site service calls later, and we're still having problems:

    • Why does it say paper jam when there is no paper jam?
    • "Coating roll life warning" and "transfer belt warning" come up all the time, even right after fresh ones are installed
    • Duplexing option jams on every 100th sheet
    • Print often seems to stick to the transfer belt and gets "ghosted" onto subsequent pages
    • The printer just disappears from the network at least once per day and needs a hard reboot


    In contrast, our HP laserjet has NEVER missed a beat. Look I know this is not a representative sample or anything, but there are clearly DESIGN flaws with this printer and it should not be on the market. Even after multiple service calls it does not work.
  • by sapone ( 152094 ) on Friday February 28, 2003 @02:39PM (#5407824)
    And who says that I need approval to produce products that interoperate with the products of another manufacturer? That's so silly, it's as if a hammer manufacturer could force you to buy his (overpriced) nails if you bought his (cheap) hammer. The market just doesn't work that way. Things like this are a recent development, and there is no absolutely no justification for it. When someone sells me something, he gives up his rights on it, and it should be my own choice how and with what I use ist. And it should be other peoples' choice to produce that with which I might want to use the item I bought...

    America is a strange country...
  • by ausoleil ( 322752 ) on Friday February 28, 2003 @02:49PM (#5407931) Homepage
    ...right now, they are concerned about the cash cow of their printers. They specifically designed a machine that requires their own cartridges and then candied it over with claims of higher quality, etc. Even the average consumer knows better than that -- they created a system that hides behind litigation to protect their market share.

    That's fine, but the market will have the last word -- for example, I will not buy a Lexmark printer. It won't be because of a political statement of any kind but rather one based on practicality -- they have increased their total cost of ownership to the point where it doesn't make sense for me to go and purchase their gear.

    If ongoing consumables gets to be unreasonable, due to a legally mandated monopoly, people will move away from existing installations as well.
  • by thorrbjorn ( 321412 ) on Friday February 28, 2003 @02:59PM (#5408034)
    Yes, I'm serious. This court ruling makes me very happy.

    Why? The DMCA is an unjust law, and as someone wiser than I once said, the best way to get an unjust law struck down is to vigorously enforce it.

    Joe and Jane Sixpack don't care about some Russian company's software or some professors speach. They probably aren't even aware of them. But if they can't get cheap ink cartriges anymore ... that might get their attention.
  • by jACL ( 75401 ) on Friday February 28, 2003 @03:05PM (#5408083)
    From a Businessweek article [businessweek.com]: 'More important, Hewlett-Packard (HPQ ), which dominates both the printer and the $7 billion toner market, has no intention of following Lexmark's course. "We believe in customer choice," says Pradeep Jotwani, the senior vice-president who heads HP's lucrative imaging-supplies business. "If they want to buy from remanufacturers, that's fine. It's our job to make them not want to."'
  • I worked at SCC (Score:4, Interesting)

    by unix guy ( 163468 ) on Friday February 28, 2003 @03:12PM (#5408132) Homepage
    Although I've not been at SCC for over 6 years, I must commend SCC on their uncanny ability to reverse-engineer ANYTHING related to printer cartidges. While I was there HP released a cartridge purported to be impossible to open (5Si), therefore impossible to recondition. These guys immediately manufactured a machine designed to cut them open without harm, and all the parts to refit it. Copyright infringement is not something I would accuse them of, and being extremely good at what they do should not be against the law.
  • by Anonvmous Coward ( 589068 ) on Friday February 28, 2003 @03:12PM (#5408137)
    "I cannot see how this is ever going to turn out good for the consumer. This will enable the makers of printers to almost charge whatever they want for their cartridges."

    *Devil's Advocate Mode*

    On the flip side, there's incentive for printer manufacturers to keep developing new and interesting printers at lower and lower prices. That may not sound all that interesting to you, but I think it's damn cool that I recently bought a laser printer for only $300. I thought those things would forever stay in the > $1000 range.

    As for your comment about them charging whatever they want, that's not entirely true. If they get crazy, people will pay attention to the cost of ink when they go to buy the printer. I can tell you that I've personally done that. I don't own an ink-jet anymore because I think the cost of a small container of ink is ridiculous. If cheap-ink alternatives aren't available, then the manufacturer has done a pretty good job of branding themselves as expensive. Ever look at a row of printer ink and see the sea of $30 price tags?

    I agree with you that it sucks in one way, but it can potentially suck the other way as well. Seems like we either get cheap printers OR we get cheap ink. I've yet to see both.
  • by Colonel Panic ( 15235 ) on Friday February 28, 2003 @03:20PM (#5408232)
    I thought there were some pretty high profile cases many years ago where one of the razor makers (Gillette?) tried to shut out other companies from making blades compatible with their razors but it was ruled that they could not restrict other blade makers.

    Also, wasn't there a case where Polaroid tried to keep (Kodak? or was it the other way around) from making film for their cameras? (and then in the Mainframe arena there was some lawsuit between IBM and Amdahl where IBM was trying to keep Amdahl's tape units out of IBM's mainframes - IBM lost as I recall). These are all pretty fuzzy rememberances, perhaps someone who knows these cases could comment?

    Anyway, something seems pretty screwy here, it seems like there is a lot of precedent out there that is totally opposite of this ruling.
  • by alizard ( 107678 ) <alizard&ecis,com> on Friday February 28, 2003 @03:21PM (#5408248) Homepage
    What is the going rate for a judge? I wonder who at Lexmark knows the answer to this question?

    Alternately, this was an honest decision made by a judge so technologically illiterate that he can't understand the issues and came to his decision by counting the lawyers at the defendants and plaintiff's tables.

    IIRC, there are court precedents that say that if a company is a franchise vendor, selling franchises does NOT mean you can force the franchisees to buy only from the franchise vendors, and I think there are other examples of situations similar to that one where the courts turned thumbs down on the kind of restraint of trade Lexmark is trying to pull using the DMCA.

  • There was a time when monopolies and trusts were seen as an integral part of thriving capitalism. And now, practices like this, selling the base system at a loss and making money by gouging on components, are seen as common as well.

    It's a bait and switch. They lure the customer in with a low-priced, high-powered printer and then snag him on the very expensive replacement cartridges.

    Though they have a monopoly, it's not a trust situation because Lexmark isn't the only company that sells printers. But as far as I understand, all printer manufacturers follow this policy.

    Are there any that don't? Are there any printer manufacturers that sell their printers and inks at market costs? Are there any who don't actively discourage the use of cheap recycled/replacement ink catridges?
  • Re:simple solution.. (Score:1, Interesting)

    by Anonymous Coward on Friday February 28, 2003 @03:52PM (#5408614)
    Lexmark only fills the cartridges in new printers to 50% capacity to prevent people from doing this...
  • by Masem ( 1171 ) on Friday February 28, 2003 @03:56PM (#5408649)
    The foundation of a free market includes the aspect of a knowledgable consumer that is aware of all choices available to him and the various up/downsides of those choices. However, it's up to the consumer to discover those choices before the purchase is made; while the producers have to make such information available, they by no means are required to thrust that information at the consumer.

    Part of the problem with what we call the "free market" today is that consumers are not following the "free market" model, and the parent post is an excellent example of this. Most people will buy the cheapest item or the one with the most brand-recognition or so-forth, instead of knowing what the pros and cons of each choice are. They're passive in their market knowledge and thus it's easy to sway them with marketing and advertizing.

    Now, there's nothing stopping a truly informed consumer as in the grandparent post (looking at the 3rd party resellers for a given model) from being empowered as a consumer as per the free market model (*). And more power to those that actually do this, as opposed to making a purchasing decision blindly.

    (*) Of course, EULAs that prevent product benchmarks and comparisons and other tactics can get in the way, but for the most part, the information is out there, you just need to find it.

  • Comment removed (Score:3, Interesting)

    by account_deleted ( 4530225 ) on Friday February 28, 2003 @04:55PM (#5409154)
    Comment removed based on user account deletion
  • unpopular (Score:2, Interesting)

    by maurert ( 515791 ) on Friday February 28, 2003 @05:18PM (#5409342)
    I'm not happy with the ruling. However, this doesn't spell the end of competition. There are several manufactures of printers. Even if each where to be able to lock down all sales of cartridges for their own printers, it's still a long way from a monopoly. No monopoly, then I would also assert the situation's a long way from printer manufactures charging "whatever" they wnat. They do afterall have to compete against the total cost of ownersihp of the other makes of printer on the market.

    Dell's supposedly bringing it's own printer to market, that should keep the other pretty honest.
  • by Windcatcher ( 566458 ) on Friday February 28, 2003 @06:59PM (#5410147)
    This action by Lexmark is nothing more than a BLATANT attempt by a manufacturer to create an artificial monopoly. It is in NO WAY limited to the consumer inkjet industry, and there is NO LAW--anywhere--that gives a U.S. company the right to create such a monopoly. If anything, SCC should investigate if Lexmark has violated the Sherman anti-trust act.

    This behavior can be applied to ANY industry in which there are consumables:

    - printers needing special paper containing "code" in the form of an IR- or UV-readable barcode,

    - electric shavers containing an embedded chip in the cutter heads that tells the unit the cutter was made by the same manufacturer,

    - chips in ANY recordable-mdeia form factor that validates the manufacturer,

    - chips in ANY auto part that perform manufacturer validation,

    - chips in common BATTERIES that force you to use batteries branded by a certain manufacturer or their partners,

    - chips in, say, headphones that require that you use them with stereo equipment made by the same manufacturer,

    and on and on. The list is countless. Just look around your room, office, or house and ask yourself if there is ANYTHING there that occasionally requires replacement parts. ANYTHING. Anything at all.

    THIS is just how bad the DMCA has become. This is how much it can and is being abused. It's got to go.
  • by frdmfghtr ( 603968 ) on Saturday March 01, 2003 @12:12AM (#5411476)
    How is using the recycled toner cartridges stealing Lexmark's intellectual property? Did SCC steal Lexmark's design? Is SCC hacking the cartridges?

    If I need to replace my inkjet cartridges, I can buy a whole new printer for near the cost--which has been tempting several times. I tried using refill kits, but don't quite have the knack yet. I got the color cartridge to work once, but I think I let it sit near empty too long--my fault.

    If companies spent the money on R&D to develop new products and more efficient means of manufacturing the current ones instead of litigation, technology would advance faster and the consumers would benefit.

    The only losers in that situation would be the out-of-work IP lawyers. And I don't see that as a problem.

    If the printer manufacturers are going to void warranties and take such steps to prevent the use of third party consumables, then they need to bring the price of those consumables down a bit.

    GM can't void your warranty for using a Fram oil filter or require an OEM part unless they provide it free of charge; why should printer manufacturers be allowed to block out alternative consumable sources?

    I'm not saying cartridges should be free; I am saying that the consumer should be free to choose. Next step is requiring the use of branded paper in the printers.

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