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The Courts Government Printer News Technology Hardware

U.S. Supreme Court Refuses to Hear Lexmark Case 220

wallykeyster writes " The U.S. Supreme Court has rejected Lexmark's petition for certiorari in its long and bitter battle against North Carolina-based Static Control Components (SCC). For those out of the loop on this one, Lexmark tried to lock in consumers and lock out competition by adding code to their printers and toner cartridges so that only Lexmark toners would work. SSC defeated their monopolist technology and began selling the off-brand chips to aftermarket toner cartridge makers. As discussed here earlier, in mid-February Lexmark was dealt a defeat by the United States Court of Appeals for the Sixth Circuit, who denied Lexmark's request for a rehearing. Other related threads here, here, here, here, and here." The story is on the AP Newswire as well.
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U.S. Supreme Court Refuses to Hear Lexmark Case

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  • by AKAImBatman ( 238306 ) * <[moc.liamg] [ta] [namtabmiaka]> on Tuesday June 07, 2005 @10:56AM (#12746795) Homepage Journal
    It sounds like Lexmark thought they could pull a Nintendo [answers.com] with their authorization chip. Only, there happens to be a few things wrong with their approach:

    • Nintendo had a patent on their authentication chip. This afforded them significantly more protection than the DMCA clauses that Lexmark is attempting to use.
    • Nintendo licensed the chip to third parties, thus negating a need for reverse engineering. Lexmark is attempting to erect an artificial barrier against competitors, which a court is unlikely to find very sporting. (That's why you *always* look to be in a market with a set of *natural* barriers. Then no one can claim that you're being anti-competitive.)
    • The DMCA does not completely rule out reverse engineering. [harvard.edu] It just reigns it in to a razor thin line. The specific clauses actually work against Lexmark due to the issue that no other method has been made available for interoperability.


    The specific clause from the DMCA is thus:
    (f) Reverse Engineering. -

    * (1) Notwithstanding the provisions of subsection (a)(1)(A), a person who has lawfully obtained the right to use a copy of a computer program may circumvent a technological measure that effectively controls access to a particular portion of that program for the sole purpose of identifying and analyzing those elements of the program that are necessary to achieve interoperability of an independently created computer program with other programs, and that have not previously been readily available to the person engaging in the circumvention, to the extent any such acts of identification and analysis do not constitute infringement under this title.
    * (2) Notwithstanding the provisions of subsections (a)(2) and (b), a person may develop and employ technological means to circumvent a technological measure, or to circumvent protection afforded by a technological measure, in order to enable the identification and analysis under paragraph (1), or for the purpose of enabling interoperability of an independently created computer program with other programs, if such means are necessary to achieve such interoperability, to the extent that doing so does not constitute infringement under this title.

    * (3) The information acquired through the acts permitted under paragraph (1), and the means permitted under paragraph (2), may be made available to others if the person referred to in paragraph (1) or (2), as the case may be, provides such information or means solely for the purpose of enabling interoperability of an independently created computer program with other programs, and to the extent that doing so does not constitute infringement under this title or violate applicable law other than this section.

    * (4) For purposes of this subsection, the term ''interoperability'' means the ability of computer programs to exchange information, and of such programs mutually to use the information which has been exchanged.


    I'm not a lawyer (duh), but my reading of this says that the case of Compaq reverse engineering the PC BIOS would have also been legal, as long as they didn't publish their findings. (Which I believe that they did.)

    It's important to understand that Congress intended the DMCA to protect digital anti-theft devices, not stop users from using their own software. The issue at hand is that the law was written before the full implications of computer technology and copyrights were fully understood. The bright side is that the actions of the MPAA, RIAA, and Adobe have gone quite a ways toward demonstrating how the market planned to abuse the law. While I doubt that we'll see the DMCA repealed, I seriously doubt we'll be seeing any new restrictions any time soon.
    • by Anonymous Coward on Tuesday June 07, 2005 @11:09AM (#12746932)
      The scope of the DMCA appears to have been substantially narrowed by a case decided by the Federal Circuit. I'm not a lawyer (2 more months to go), but I think the Chamberlain Group case is a more important decision in terms of DMCA law, than Lexmark. Though the concurrence by Judge Merritt in the 6th Circuit decision in Lexmark goes much farther than the majority opinion did.

      The Chamberlain Group, Inc. v. Skylink Technologies, Inc., 381 F.3d 1178 (Fed. Cir. 2004). at Findlaw: http://caselaw.lp.findlaw.com/scripts/getcase.pl?c ourt=fed&navby=case&no=041118 [findlaw.com]

      Lexmark Int'l, Inc. v. Static Control Components, Inc. at findlaw: http://caselaw.lp.findlaw.com/data2/circs/6th/0354 00p.pdf [findlaw.com]
    • by nuggetboy ( 661501 ) on Tuesday June 07, 2005 @11:10AM (#12746942) Homepage
      Perhaps I'm reading it wrong, but doesn't para 3 specifically allow the person who has acquired the information in paras 1 and 2 to publish those findings? From what you've pasted here, I see hardly any prohibitve language except the "as long as it does not constitute infringement" stuff.
    • by megalomang ( 217790 ) on Tuesday June 07, 2005 @11:48AM (#12747461)
      I am not sure the patent on the authentication chip had anything to do with it whatsoever.

      Don't forget these other important facts:

      * Nintendo is using their DRM technology to protect copyrighted software. Lexmark is using it to lock out competitors from using ink, which is not copyrightable.
      * A gaming console is a mechanism for playing games. The value of a game is contained on the copyrighted media. The game console checks for violations prior to playing the game. A printer is not simply a mechanism for using ink. The value of the printer is not in the ink, and there is no reason for the printer to check for copyright violations prior to using ink.
  • by Benanov ( 583592 ) <brian.kempNO@SPAMmember.fsf.org> on Tuesday June 07, 2005 @10:58AM (#12746809) Journal
    Well, that's another tooth pulled from the DMCA. Unfortunately the process of judicial review is slow...
    • by Pakaran2 ( 138209 ) <.windrunner. .at. .gmail.com.> on Tuesday June 07, 2005 @11:23AM (#12747081)
      Note that this does not say anything about the DMCA. The DMCA has not been struck down or restricted. The Court refused to hear an appeal, thereby letting a decision stand which prevented a specific company from collecting in a specific lawsuit about its toner cartridges.

      The Court refuses the vast majority of petitions it gets. It may simply feel that it is too busy, and the case was likely decided correctly. This does not mean that any other parties can ignore the DMCA, and I hope the slashdot population realizes that.

      It would be nice if the DMCA were struck down, but that did not happen here.
      • by MindStalker ( 22827 ) <mindstalker@gma[ ]com ['il.' in gap]> on Tuesday June 07, 2005 @11:45AM (#12747414) Journal
        Well it does create a standing the you cannot be successfully sued due to reverse engineering for interoperability to sell a competing product that does not break copyright.
        • by Pakaran2 ( 138209 ) <.windrunner. .at. .gmail.com.> on Tuesday June 07, 2005 @11:53AM (#12747518)
          True. But the point is that the Court gave no information about exactly what grounds it refused cert on. It could be that the case looked correct, and they had a big backlog (they always do, and hear maybe 1% in general).

          That said, this should give confidence to refurbished cartridge manufacturers, and maybe printer makers will have to move to a new business model (such as selling both printers and cartridges at a reasonable profit margin, or accepting cartridges for recycling themselves).
        • by eyegone ( 644831 ) on Tuesday June 07, 2005 @12:13PM (#12747786)

          Well it does create a standing the you cannot be successfully sued due to reverse engineering for interoperability to sell a competing product that does not break copyright.

          The word you're looking for is "precedent," and it only applies in that circuit.
    • Nay! (Score:4, Informative)

      by BlueUnderwear ( 73957 ) on Tuesday June 07, 2005 @11:25AM (#12747099)
      Well, that's another tooth pulled from the DMCA. Unfortunately the process of judicial review is slow...

      But eventually it will reach its end. And then the DMCA is gone. That's because your (the US) constitution in on your side. Indeed, the US clearly states that authors and inventors should only be granted "exclusive rights" if that promotes the Progress of Science and useful Arts. That's a good thing.

      Now imagine you had a constitution which would grant intellectual property owners unconditional protection. Imagine, that instead of saying ... to promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries. it just said intellectual property shall be protected period!

      In that case, you'd be up shit creek without a paddle fighting the DMCA.

      Now imagine you had a choice. Imagine you were asked to either accept such a flawed constitution or to reject it. Would you accept it?

      Now, imagine that Bush threatened to resign if the constitution containing such a paragraph was rejected, saying in no uncertain terms that it would be a matter of common political decency to resign rather than be president of a country where intellectual property would not be protected 100%. Would you still reject the constitution? Or would you be cowed into accepting such a flawed document, for fear of losing your beloved president? Or would you rather rejoice at the prospect of having an easy way to ditch that village idiot ;-)?

      In the next couple of months millions of EU citizens will be offered this choice. Millions of others won't be asked. If you are among the lucky ones that have a referendum, chose wisely. The EU constitution does indeed say, in article II.77.2, that intellectual property shall be protected. Nothing else. No limits to institutional greed. Some still think that it is in their best interest to say yes. Don't be fooled, and read the treaty before you sign it. The French and Dutch already have made up their mind.

      Europe yes, but not with this constitution!

      • Re:Nay! (Score:3, Interesting)

        by misterpies ( 632880 ) on Tuesday June 07, 2005 @03:03PM (#12750221)
        Not the whole story. Unlike the US Constitution, the European Constitution also has consumer protection (II 98) and anti-trust clauses (III-161 to III-169) and the whole needs to be read together.

        So if the EU constitution was passed it would be _unconstitutional_ for companies to engage in competition-distorting practices.

        Remember that there's very little new in the Euro Constitution. Almost all of it - including IP protection and antitrust measures (see e.g. articles 81-86 of the EC treaty) - is lifted from earlier treaties. And there's plenty of caselaw to show that in most cases, the antitrust provisions win out over IP rights.

        And yes, I am a lawyer currently working on European antitrust cases, so I know what I'm talking about.
      • Now, imagine that Bush threatened to resign if the constitution containing [a paragraph granting blanket authority to enforce monopolies on works of authorship and inventions] was rejected, saying in no uncertain terms that it would be a matter of common political decency to resign rather than be president of a country where intellectual property would not be protected 100%. [A.] Would you still reject the constitution? Or [B.] would you be cowed into accepting such a flawed document, for fear of losing your beloved president? Or [C.] would you rather rejoice at the prospect of having an easy way to ditch that village idiot ;-)?

        Don't blame me; I voted for Badnarik and every other Libertarian on the ticket in Allen County, Indiana, in 2004. Therefore, I'd choose C, ousting President Bush and his administration.

  • by guyfromindia ( 812078 ) on Tuesday June 07, 2005 @10:59AM (#12746819) Homepage
    Perhaps someone could manufacture a disposable printer? Then, they dont have to worry about cartridges, etc.. In fact, I find it cheaper to buy a new printer than mess with cartriges (i.e. if I use the Manufacturer's cartridge - not after marktet fillers, etc).. Just a thought...
    • by defkkon ( 712076 ) on Tuesday June 07, 2005 @11:04AM (#12746874)
      Buy Canon. I love their printers. In reviews, they typically fair better than most and are consitantly high performers.

      Combine that with the fact that their cartridges are cheap. My S540 is an awesome printer for normal documents as well as borderless picture printing. The black ink cartridge is a mere $10. Can't beat it.

    • by goldspider ( 445116 ) on Tuesday June 07, 2005 @11:09AM (#12746933) Homepage
      More trash, that's just what we need!
    • by Greyfox ( 87712 ) on Tuesday June 07, 2005 @11:39AM (#12747311) Homepage Journal
      If I were in the market for a printer I'd go the laser route. Toner's dry so it doesn't dry up and clog if you print something every 3 years like I do. I seem to recall that lasers are a lot less expensive per page to print than inkjets are, too, though I forget where I heard that. Last time I checked (About a year ago) you could get a PostScript level 3 laser printer starting around $500. PostScript is an easy set-up with Linux, is a nifty language and you don't have to worry about your printer manufacturer not supplying a driver for the next version of Windows if that's your OS of choice.
    • by Vitriol+Angst ( 458300 ) on Tuesday June 07, 2005 @01:33PM (#12748948)
      A disposable printer has already been made--it's called an Epson. I've had two, and I can't seem to get more than halfway through a cartridge before I need to replace it because it has dried out. I spend more time cleaning than printing (I print maybe once a month). I also don't seem to get decent prints until the third print on the expensive glossy paper.

      I typically buy a printer based on ink cartridge cost. But that is not the only factor in the equation. So, I'll probably pay more money up front and get a Canon or a laser color printer. I'm pretty much sick of the bogus tricks the ink jet printer companies have been playing on customers.

      Lexmark has only ruined their market for anyone savvy. After I heard of them trying to use DRMC tactics to ensure profits on their cartridges, I put them on my DO NOT BUY list.

      I hope more consumers stay aware of abusive companies. Next on my list is WalMart, or companies that get goods from Saipan.
    • by Chris Brewer ( 66818 ) on Tuesday June 07, 2005 @05:17PM (#12751733) Journal
      A blog article I read ages ago came up with a printer strategy, based on a 2400x1200 Lexmark printer that cost $35 (black ink refill $30, colour refill $33):

      - buy the cheapest inkjet that comes with cartridges
      - when the ink runs out, donate the printer to your local school and buy a new printer

      You get a tax credit for the donation, the school gets near new equipment, and you save on ink.
  • by dextroz ( 808012 ) on Tuesday June 07, 2005 @11:04AM (#12746865)
    It seems to me that everytime you buy 4 printer cartridges, you've already paid the price for a new printer (inkjets). So why not just build a printer with a really large cartridge size and then expect people to throw the entire printer away. Make the cartidge non-removable of course... but then again I am not in the printer business and last I heard HP is still chugging along...
    • by tlhIngan ( 30335 ) <slashdot&worf,net> on Tuesday June 07, 2005 @11:17AM (#12747013)
      Because that would ruin the Gilette business model. Printer manufacturers are subsidizing the cost of the printer with the cost of the ink (more expensive than Dom). That's why they deliberately package half-tanks in with the printers.

      Inkjet printing is a subscription business. You pay a small amount upfront ("printer cost", though if you get it on special, usually nil). Periodically, you "renew" your subscription by buying ink. Refilling used to be a problem, but with chips like these, well, it's not a simple 5-minute job anyone can do with a syringe anymore.

      Same goes with most consoles and games. Razors and blades. Cable TV boxes. Cell phones. etc.

      That doesn't mean there aren't options. Besides 3rd parties, there are companies that make modified ink tanks that draw their ink from external reservoirs (with half-liters of ink). Slightly big and unwieldy, but works for those poster-prints printer manufacturers always want you to do. (Do those ink cartridges contain enough ink to do a regular poster print without running out halfway through?).

    • by zakezuke ( 229119 ) on Tuesday June 07, 2005 @12:54PM (#12748351)
      It seems to me that everytime you buy 4 printer cartridges, you've already paid the price for a new printer (inkjets). So why not just build a printer with a really large cartridge size and then expect people to throw the entire printer away. Make the cartidge non-removable of course... but then again I am not in the printer business and last I heard HP is still chugging along...

      I have thought from time to time about the idea of designing a printer that would take bulk ink. Make to either accept a new 30ml or 60ml bottle that can either be replaced as a whole or replenished. The problem is I couldn't do it for a reasonable price. What consumer would consider a $300 to $500 when you can presently buy one for $50 to $100.

      The only people likely to consider such an option are those who want the print yield of a laser, yet the glossy quality of dye, and those lot for the most part are perfectly happy chucking out $100 to $500 for a new printer every 6 months or so.

      And why mess with the current gravy train? If it costs $75 to refill your current printer, and a new model costs $100.00, in a years time the net cost to upgrade is only $25. Or wait till they are on sale when the net cost is 0. Plenty of Canon or Epson after market bulk ink kits while not pretty do the trick for either the frugal consumer that doesn't want to pay $3000/$5000/$10,000/gal or the control freak that has to use x ink on x paper.
  • by supernova87a ( 532540 ) <kepler1@hotmail. ... minus physicist> on Tuesday June 07, 2005 @11:10AM (#12746941)
    The Supreme Court gets probably 100x more petitions per year than it could ever choose to hear. So being denied a hearing by the Supreme Court is not in itself particularly revealing about the merit of any one case.

    However, you can be sure that when the court does take a case, that it involves all of the following: 1) a fundamental question of law, 2) that is being inconsistently decided by lower courts, and 3) that is ripe for adjudication by the Court (based on sufficient instances of the problem to guide them).

    So, this particular case could have failed for any number of reasons. It probably does not involve any spectacular question of law -- the lower courts are well-equipped to decide the issue. So it is not so much a stinging defeat for this company, as it is a final forclosure of legal options in a matter that was already practically resolved.

    Any lawyer who tells you that "we'll take this all the way to the Supreme Court" and expects to even get it heard, is full of it.
    • by tweek ( 18111 ) on Tuesday June 07, 2005 @11:20AM (#12747037) Homepage Journal
      I would suggest that everyone pick up a copy of Sandra Day O'Connor's book "The Majesty of the Law" as well as William H. Rehnquist's "The Supreme Court". These are some really amazing insights into the opertation of SCOTUS.

      The W.H.R. book especially covers the process and how cases actually get before the court. He also covers some of the background of the cases he was involved in. Amazingly enough both books are fairly non-partisan and Rehnquist makes the point that many a president has made the mistake of thinking an appointee would be a backdoor into the Supreme Court when it has rarely turned out that way. He discusses court packing attempts as well which seems pretty relevant.
      • by sconeu ( 64226 ) on Tuesday June 07, 2005 @12:19PM (#12747873) Homepage Journal
        The recent medical marijuana decision was interesting because of the dissenters.

        O'Connor, Rehnquist and Thomas dissented on the ground of States Rights.

        The others, including Scalia(!) ruled that medical marijuana (grown for one's self, in one's home, not taken out of state) can be regulated under the Interstate Commerce Clause.

        Just thought it was an interesting side note, given the parent post.
        • by tweek ( 18111 ) on Tuesday June 07, 2005 @12:30PM (#12748024) Homepage Journal
          One of the interesting points that each book I mentioned makes is that appointees almost never tow the presidential party line.

          They cite a few reasons:

          1) Rule of Law and the Constitution defies party lines. Or at least it should. It's the difference between a democracy and a republic. In a democracy, majority rules but in a republic, the law rules. I'm sure there are plenty of judges out there who don't and won't ever get this difference and will use SCOTUS as an attempt to make laws but they soon learn that it won't fly with SCOTUS. I get worried when I hear the Supreme Court mentioning public opinion as a basis for a ruling because it means that we inch closer to a doomed democracy.

          2) SCOTUS justices are beholden to no man and they will long outlive the president who appointed them. W.H.R. cites several examples of this in his book and makes a grand point about it. He himself was appointed by Nixon and has long outlived that man's career.
        • by hawk ( 1151 ) <hawk@eyry.org> on Tuesday June 07, 2005 @12:30PM (#12748025) Journal
          I wasn't surprised to see Thomas and Scalia split on this one.

          Scalia's knee tends to jerk right on anything involving "police safety." That's a bit of a stretch here, but not a huge one.

          I am surprised to see O'Connor in the dissent, though. Rehnquist isn't surprising, and Scalia was expected.

          hawk, esq.
    • by wallykeyster ( 818978 ) on Tuesday June 07, 2005 @01:55PM (#12749264)
      So, this particular case could have failed for any number of reasons. It probably does not involve any spectacular question of law -- the lower courts are well-equipped to decide the issue.

      I don't disagree with the gist of your post, but the fact that this case was a test of the limits of the DMCA means that the SCOTUS likely would have gotten involved had they disagreed with the Appeals Court.

      So it is not so much a stinging defeat for this company, as it is a final forclosure of legal options in a matter that was already practically resolved.

      Which is how it was presented. The fact that the SCOTUS refused to accept the case means that the previous court ruling against Lexmark will stand as a rare victory for those who oppose the overreach of the DMCA.

  • by xiando ( 770382 ) on Tuesday June 07, 2005 @11:14AM (#12746988) Homepage Journal
    It's my printer, I want to use what ever ink I want.. With a chip that prevents me from using the type of products I want together with their products they make me feel like I am renting their printers under some very rude terms, not buying them with the rights that normally follow a purchase. It is almost as bad as a DVD player not wanting to play any kind of DVD you put into it.. oh wait, that IS the case with zone-enabled DVD players..
    • by Renraku ( 518261 ) on Tuesday June 07, 2005 @12:46PM (#12748246) Homepage
      Why do you think the DMCA exists?

      Not to protect the government, but to protect companies in their artificial scarcity rules.

      Cars, for example. Some engines can only be read/serviced by proprietary software. Software that is probably found at the dealer, which is known for being too expensive.

      Before, someone would just crack their encryptation, and release a module to service machines to make them able to communicate.

      Now they have to wonder if they're going to get sued to hell and back, and would just move on to doing something else thats as profittable, but less dangerous.

      You could say..its your car..I want to use whatever parts I want. No, you'll use the parts specified by your supplier in the future, or you'll be sued into oblivion.
    • by Pastis ( 145655 ) on Tuesday June 07, 2005 @02:44PM (#12749952)
      It works like that for mobile phones and nobody complains. (or course mobile phones can easily prevent you from using a different network operator).

      You can buy a mobile phone with a subscription. Your phone is stuck to a certain operator for a year or 2, and you get it cheaper than if you buy it on your own.

      Similarly printer resellers could chose to sell 2 types of printers. The ones with the 'ink renting' for a limited time, and the full price one.

      Not sure if would work though.

      Ad vita eternam vendor locking is not a good option.
      • by wronskyMan ( 676763 ) on Tuesday June 07, 2005 @05:50PM (#12752095)
        True, but while companies certainly can put whatever features they want in their products, the GP's point is that the company should not be able to sue those who help you get around the features of your product. Summary: restrictive features=bad but OK; being able to make the government enforce your restrictive features=very bad.
  • by RealProgrammer ( 723725 ) on Tuesday June 07, 2005 @11:15AM (#12746992) Homepage Journal

    This will start us down a dangerous, slippery slope: first SSC will start making cartridges for all Lexmark and other printers. Then people will start using those $9 refill kits instead of buying new cartridges that cost O(new printer).

    The next generation of our youth will think nothing of using free software instead of paying for the commercial kind. People may even start bicycling or - brace yourself - walking to work. Civilization will come to a halt.

    </irony>

    Every once in a while, my faith in The System gets a little boost.

    • by xiando ( 770382 ) on Tuesday June 07, 2005 @11:25AM (#12747100) Homepage Journal
      "instead of buying new cartridges that cost O(new printer)." You make a very interesting point. The last time I bought a printer I almost bought two because I noticed that the printer cost less than the color and black cartridges it came with when sold separately. I almost feel stupid I didn't buy two printers, but then again I know that printers will still be cheaper than two ink cartridges the next time I go empty anyway. Why? They are all doing it. Canon, HP, Lexmark and all other major brands for that matter are selling printers cheaper than the ink now and are defendant on revenue from their original ink to make an overall profit. The problem for them is that this model fails because of all the third party ink vendors who are also making a profit from them giving away printers, but printer vendors not liking competition does not make it fair to use "what ever dirty means they can" (like Lexmark did) to stop it. It is very good that the Supreme court for once put the foot down for the usual Big Corporations "if you can not beat them, sue and threaten them"-tactic.
      • by s.d. ( 33767 ) on Tuesday June 07, 2005 @11:35AM (#12747240)
        i remember a few years ago seeing someone at best buy or circuit city (can't remember which offhand) buying 5 printers at the friday after thanksgiving sale. the printers, with black and color cartridges, were on sale for something like $20 or $30 each. i asked him why he wanted 5 printers, and he told me that it was just so much cheaper to pay $30 for a printer and 2 cartridges than $30 each for 1 cartridge. the printers were pretty much disposable/one-time-use.
      • by hawk ( 1151 ) <hawk@eyry.org> on Tuesday June 07, 2005 @12:32PM (#12748065) Journal
        Last time I checked, however, the cartridges that came with my printer held half or less what the regular cartridges did, making it cheapere to buy cartridges.

        hawk
        • by zakezuke ( 229119 ) on Tuesday June 07, 2005 @01:03PM (#12748502)
          Last time I checked, however, the cartridges that came with my printer held half or less what the regular cartridges did, making it cheapere to buy cartridges.

          My Epson r200 came with a full set of ink. It's cost was $25 more than a full set of ink not on sale. With rebates which I didn't bother to get in this case, the cost would be a little bit more than the ink.

          My Canon ip3000 came with a full set. After the rebate the cost is a tiny bit more than the ink. But the Epson was kauput and it's cost was cheaper than OEM ink for the Epson.

          Every once and a while there are coupons and sales that make the printer cost less than ink cost. Rebates are generally one only per household, making it harder for one to just buy lots of printers.
  • "Monpoly" (Score:2, Insightful)

    by Anonymous Coward on Tuesday June 07, 2005 @11:18AM (#12747017)
    There's nothing monopolistic about what Lexmark did. You people sure like to throw that term around though - it doesn't mean what you think it does.
    • Re:"Monpoly" (Score:2, Informative)

      by Anonymous Coward on Tuesday June 07, 2005 @12:48PM (#12748265)
      The term "monopoly" wouldn't refer to the printer part of their business, but would refer to the ink part of their business. They were trying to monopolize the sale of ink for their printers. Granted... they weren't trying to monopolize the sale of all ink, but then they aren't in the position to do that.
  • by JustNiz ( 692889 ) on Tuesday June 07, 2005 @11:22AM (#12747065)
    Lets just hope this signals the ultimate end of putting chips to artificially limit lifetime and comaptability in ink cartridges.

    HP do the same thing just to enable ludicrous overpricing on their ink cartridges. I'd love to see HP get forced to charge fair prices because of now legalised fair competition.
  • by eniac79 ( 767137 ) on Tuesday June 07, 2005 @11:24AM (#12747091)
    What Lexmark is trying to do is protect their revenue stream. Replacement cartridges have always been the money-maker for printer manufacturers. IMO, Lexmark also makes inferior products, so their products themselves are unlikely to bite into HP's large marketshare.

    Printer companies HATE aftermarket cartridges. Lexmark wants to kill that competition via lawsuits. HP does it a smarter (albeit similarly devious) way. Make your cartridges incompatible by constantly releasing new printer models with new cartridge interfaces. The latest HP inkjet models with the HP 94/95/96/97 cartriges are just the latest example of this tactic.

    • HP does it a smarter (albeit similarly devious) way. Make your cartridges incompatible by constantly releasing new printer models with new cartridge interfaces.

      All that does is delays the onset of generic competition. Unless they put serious levels of obfuscation into the cartridges (smartcards with challenge/response designed to resist reverse-engineering, for instance) it won't take long to duplicate any design. Sure, the generic company now has to support 100 models of cartridges instead of 10, but that works against HP as well. If HP has to raise their prices to support all those cartridges, then the generic companies can raise their prices to recover their costs and not lose market share. The only result of HPs decision would be more people buying from Epson since the entire cartridge market is cheaper (unless Epson does the same thing).

      Unless they want to spend $40 per cartridge on smartcard technology, there are only so many limits manfuacturers can put on reverse-engineering. It is always cheaper to copy something than it is to design in the first place. Even smartcards can be defeated - they're made of matter and so they can be taken apart by somebody with sufficient determination...
    • by Technician ( 215283 ) on Tuesday June 07, 2005 @12:56PM (#12748392)
      HP does it a smarter (albeit similarly devious) way. Make your cartridges incompatible by constantly releasing new printer models with new cartridge interfaces. The latest HP inkjet models with the HP 94/95/96/97 cartriges are just the latest example of this tactic.

      The big thing I noticed is my HP 95 printer uses a $60 color cart ($35 for the half full economy version) where my HP722c uses a 2 pack color cart ($43) for the same size cart. Needless to say, their old printer is competiting with the new printer. For web pages, Yahoo maps and other color printing, I use the 722, not the 950. The newer 950 sits in a box on the shelf. It's just a spare in case the 722 dies.

      HP tried a public relations campaign by touting how much further the 78 cartridge prints by advertising the page count. I did my homework. I found the 722c printer's cartridge was listed by page count at 15% color page coverage.

      The 950's color cart would print many more pages.. but at 5% color page coverage. They did not do a page count for both cartridges using the same amount of color printing per page! Needless to say, if I did a simple assumption that if the 722's printer cart did 5% coverage instead of 15% coverage I would get 3X more pages printed for my estimate. Then the comparison fell apart. The 722 printer prints more color pages using less ink from a cartridge at less than half the price.

      I'll not buy another color printer until I have the hard numbers on estimated cart yield, cost per cart, and ultimately the cost/page at X percent color coverage.

      My wife bought a Dell computer. It came with a Dell all in one printer. The carts are about 1/4 the size of the HP carts. The volume and estimated page yield are not stated anywhere. Needless to say, when it ran out of ink, it became a Goodwill item. I did not let the wife order ink. My laser and inkjet printers are networked. The Hawking printservers I use are about the same price as a HP cart.
    • I hope the inventor of the loss leading business model is roasting simultaneously in all the circles of Dante's inferno. Espcially the guy who started the damn give away the razor and overcharge for the blades crap. He should be given the worlds worst case of acne, forced to shave and splace lemon juice on for aftershave.

      Why in gods name can't the printer companies just make a freakin printer, charge a reasonable profit for their effort and do the same with replacement ink. If they would do that there wouldn't BE any aftermarket ink war. The barrier of entry to full printer hardware market is far steeper than that to making knockoff ink well cartridges. But no... they have to keep chasing the dream of controling their market and forcing people into the 1000% mark up replacement ink in return for being able to buy at cost or mildly discounted hardware. Hell, if they would simply reduce their attempted price jack back to just merely astromical they could tighten the belts of the aftermarket crowd to the point it might squeeze them out.

      Do they not realize the more absurd their markup the more room and incentive to operate they give the aftermarket crowd ? The higher they charge over the intrinsic value of the constituent parts the more money the aftermarkets can charge to re-coup a reverse engineering investment. In the end it just becomes corporate market competition with a sweetspot that is NOT in the consumers best intrest which is what market competition is supposed to be for in the first damn place.
      • by jimicus ( 737525 ) on Tuesday June 07, 2005 @02:48PM (#12750001)
        Why in gods name can't the printer companies just make a freakin printer, charge a reasonable profit for their effort and do the same with replacement ink.

        Because they don't make enough money that way. Yes, a company could come along and do that, and charge a fair price for ink cartridges. The aftermarket ones likely wouldn't exist for that printer. But at the consumer end, most people look at the price of the printer itself. Considering ongoing costs is very much a niche corner of the market. At the business end, many printers aren't sold at all, they're leased - the company gets the printer and all the toner they can eat "free" - but they pay a fixed rate per page.

        The only way you'll ever get this done is to legislate it. Never gonna happen.
    • by zakezuke ( 229119 ) on Tuesday June 07, 2005 @03:16PM (#12750405)
      The latest HP inkjet models with the HP 94/95/96/97 cartriges are just the latest example of this tactic.

      I'm not up on current HPs. I know that the HP 94 black has a yield of 450p and will fit into printers that also accept the HP 96 with an 800p yield. What I don't know is if the lower priced printers that say the replacement ink is HP 94 will accept the 96 black.

      Does HPs lock the lower end printers to the cart that has a higher cost per page?
  • by account_deleted ( 4530225 ) on Tuesday June 07, 2005 @11:29AM (#12747151)
    Comment removed based on user account deletion
    • by Technician ( 215283 ) on Tuesday June 07, 2005 @01:12PM (#12748626)
      So if you've bought a printer without researching the prices of cartridges and the quality/prices of third-party cartridges, that's your fault.

      Good point. It's not quite complete however. Quanity of ink and page yield are important in figuring the cost per page. There is some deception out there (not a lie, deception)

      HP sells two versions of it's 78 cart. The $35 half full economy version and the high capacity $60 version. The website lists the estimated page yield.

      Doing my homework I checked it out. I was using an older HP printer that used the 23D carts. They are cheaper. I found the page yield numbers. They were a little less then the High capacity 78 cart. Wow. Sounds good, except the 23 carts were listed as tested with 15% color page coverage and the 78 cart was listed with 5% color page coverage. Using less ink per page will certanly make the more expensive cartridge yield more pages. If you adjust the % coverage and adjust the yield to match, then the new cartridge doesn't look like a bargan at all.

      The fact is that photo-printing to any reasonable quality is *hugely expensive* on a home use printer & PC combination and it's still much cheaper to drop a CD into a shop or a memory card into a machine and get the photos printed that way. Even much cheaper third party cartridges suffer from quality issues - it really is a case of "you get what you pay for".

      You got that right. I use color for web pages and document highlights. I let the photofinisher deal with the photos. It is cheaper and the results are much better.

      But ignorance is no excuse - if the majority of people are too stupid to see beyond the glossy adverts that they are constantly bombarded with, then more fool them.

      I hear that. My new printer did a nice job on photos, and the estimated page yield looked good. When it ran out way too soon from printing photos, I did my homework on what page yield really meant. Then I stopped printing photos. Photos are not 5% page coverage printing.
    • by almostmanda ( 774265 ) on Tuesday June 07, 2005 @02:14PM (#12749558)
      The problem comes when every printer manufacturer starts doing this. There are a limited number of big name printer companies. Xerox, HP, Epson, Canon, Lexmark. If the courts say it's ok, all of these manufacturers will decide this method is THE solution to making money. As it is now, most of them see that the protection will usually be defeated, and third party sellers will continue.

      Another problem is that most people don't get to research their printer before they buy it. Often, you get them when you purchase new computers, particularly entry level models. Dell is always eager to throw in a new Dell-rebranded Lexmark if you try to customize a system; eMachines from Walmart rarely come without at least a coupon for 50% off a new printer, but more often an actual free printer. It's a brilliant move by Lexmark and HP.

      You can't really blame consumers on this one. Especially when buying their first printer, most people don't realize what a racket it is and how many things you have to research. I finally got my hands on a cheap Canon with cheaper third party ink that is good for what I need, but that took three tries with various crappy, proprietary printers. I doubt everyone is so lucky.
  • by inmate ( 804874 ) on Tuesday June 07, 2005 @11:55AM (#12747546) Homepage
    i have just one thing to say,

    NEVER BUY A LEXMARK!

    in addition to being an inferior printer, they also don't fly very well. i threw mine out of our 3rd story window and was quite dissapointed by its aerodynamics.

  • by JoelMC ( 877117 ) on Tuesday June 07, 2005 @12:29PM (#12748011)
    Look at the posts yesterday about DVD Decrypter being shut-down...then compare that the supreme court not hearing this case on Lexmark's behalf. It seems that DVD Decrypter isn't even as bad as SSC, but they've been bullied literally to death. SSC found a way to "crack" Lexmark's trade secret, and then sold it off to Lexmark competitors. How can that not stand up, but "some company" can attack on the grounds of DRM violation?

    • by zakezuke ( 229119 ) on Tuesday June 07, 2005 @03:09PM (#12750288)
      How can that not stand up, but "some company" can attack on the grounds of DRM violation?

      You can argue that to copy a disc that is protected always violates the copyright. I don't agree with personaly, but the arguement is stronger because we are talking about material that costs millions of dollars to produce. You don't need a Disney DVD player to buy DVDs.

      Lexmark doesn't have a copyright on colored liquid, nor apparently do they have the right to force you to buy your colored liquid from them. And let's face it, DVDs are cheaper than cartridges.

  • by PingXao ( 153057 ) on Tuesday June 07, 2005 @12:31PM (#12748037)
    The SCOTUS refusing to hear this appeal has good and bad aspects. On the one hand Lexmark's abuse of the DMCA is at an end. On the other hand, the SCOTUS did not undertake a full review of the case and rule on the constitutionality of the issues at hand with respect to that fundamentally deficient law.

    So far so good, I guess. They could have reviewed the case and said, "Oh yeah, you can use the DMCA to do that!"
  • by saleenS281 ( 859657 ) on Tuesday June 07, 2005 @12:33PM (#12748077) Homepage
    So basically lexmark didn't buy off enough people to get their way is what this is saying? Because this lawsuit has just as much merit as every other one that "went down without a fight".
  • by Secrity ( 742221 ) on Tuesday June 07, 2005 @02:41PM (#12749905)
    I am disappointed that I will not be able to boycott Lexmark printers -- I already won't buy Lexmark because I think that they are pieces of shit.
  • From the /. story: "The story is on the AP Newswire [yahoo.com] as well.".

    The Associated Press may have a story along these lines, but the link currently pointed to by Slashdot will not take you to that story. That link, copied from /.'s front page, takes the reader to a Static Control Components press release which happens to be carried on Yahoo! (a site that also happens to carry copies of AP wire stories).

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