Why Patent Law Shouldn't Block the Sale of Used Tech Products 215
An anonymous reader writes: Lexmark is best known for its printers, but even more important to its business is toner. Toner cartridges are Lexmark's lifeblood, and they've been battling hard in court to protect their cashflow. The NY Times has published an editorial arguing that one of their recent strategies is bogus: making patent infringement claims on companies who refill used cartridges. Think about that, for a moment: Lexmark says that by taking one of their old, empty cartridges, refilling it with toner, and then selling it somehow infringes upon their patents to said cartridges. "This case raises important questions about the reach of American patent law and how much control a manufacturer can exert after its products have been lawfully sold. Taken to their logical conclusion, Lexmark's arguments would mean that producers could use patent law to dictate how things like computers, printers and other patented goods are used, changed or resold and place restrictions on international trade. That makes no sense, especially in a world where technology products and components are brought and sold numerous times, which is why the court should rule in favor of Impression." The Times paints it as the latest attack on ownership in the age of DRM.
"Infringing"? (Score:5, Insightful)
"Lexmark says that by taking one of their old, empty cartridges, refilling it with toner, and then selling it somehow infringes upon their patents to said cartridges"
The only thing it "infringes" on is their profits.
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> The only thing it "infringes" on is their profits.
Raise hand if you have used a printer in last 24 months? It starts to be kinda outdated technology already. Everything is on the web, and noone is printing web pages...
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Try interacting with a lawyer or a government. I can guarantee you, everything is going to involve paper.
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Lawyer, maybe. Government, no. I just renewed my drivers license online. I pay my taxes online (income and real estate). I reserve a campground at the State Park online.
The last time I set foot in a government office, I didn't have to pick up a pen. There was a stylus to sign my name.
Maybe Chicago is more sophisticated than Rowan County, Kentucky, but government here is quickly shifting away from pa
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Lawyer, maybe. Government, no. I just renewed my drivers license online.
That's lovely for you. As a foreign national, I'm currently in the process of trying to renew my US drivers license. It's so far taken 2 months, and reams of paper. It's taken so much bullshit and paper pushing in fact that my license expired during the process.
I pay my taxes online (income and real estate).
Certainly last time I filed my taxes in the US, there was a lot of paper involved, though I admit that was mostly through interaction with lawyers, not the government. The first time I filed them, I certainly was required to file with paper - eFi
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Funny, as another foreign national living in the US my US drivers license was not nearly as painful (i think it took a few days) but agree with you 100% on the stacks of paper.
The DMV needed proof of legal status in the US... Did they check their database or have me bring in my passport, with all the US attachments which DHS stapled in?
I also filed my taxes online, but my W2 came in paper form via snail-mail... I then retyped the info into the tax software manually and filed electronically.
Paperless... not
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Most important, I bought a new set of tyres (sorry, tires) last week and took the precaution of printing the details off
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Typewriters rule (Score:2)
Or Russian secret police
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I renewed my passport online without any paper. My government is soon going to allow applying for passports online as well.
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Raise hand if you have used a printer in last 24 months? It starts to be kinda outdated technology already. Everything is on the web, and noone is printing web pages...
You need to get out more. All sorts of things require a hard-copy paper document. If you've ever been in business you'd know this beyond any doubt.
Computers were heralded as enabling the "paperless office", but if anything they increased paper consumption a hundred-fold. I'd bet that 80% of the people reading this have used a printer in the last year, probably in the last month or so.
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I will take that bet regarding the last "month or so". And, I'll bet that the 50% that are still using paper print less than 3 documents per month.
A few weeks ago, I looked at my checkbook and the last paper check I wrote was January. Of 2014.
Stuff is starting to change fast.
Re:"Infringing"? (Score:4, Interesting)
I will take that bet regarding the last "month or so". And, I'll bet that the 50% that are still using paper print less than 3 documents per month
Every day in every office in every city in every part of the world, businesses print stuff on paper.
Almost anything dealing with the law or court involves printing documents, daily if not hourly.
Real estate offices churn out so much paper that it boggles the mind.
Virtually every government office in every country on Earth prints reams of stuff daily.
You may not be in an environment where much stuff gets printed but that doesn't mean it still isn't happening all around you every day.
A few weeks ago, I looked at my checkbook and the last paper check I wrote was January. Of 2014.
And my last one was written this morning. Lots of people write checks; just because you don't doesn't mean no one else is. Seriously, lots of people have a life different from yours and mine, and that life includes printing stuff.
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Don't make the mistake of thinking everyone in the world is a white-collar worker.
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No, I don't want to drag my tablet under the car. It would end up broken. I do a lot of "blue collar" jobs like this as an amateur.
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Don't make the mistake of thinking everyone in the world is a white-collar worker.
Don't make the mistake of thinking that because you don't use a printer, no one does.
Printer sales are up, paper consumption is up, and yet apparently no one is printing anything. How does that work?
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I didn't say no one uses a printer. I said about half of workers use printers, and many of those print maybe 3 or 4 documents per month.
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I'd commonly print out onine documents in an office environment because, though people could look at them online, anything could be changed at any time, and unless I removed permissions on something and read a screen to the people in the meeting, I'd just print it out and have everyone confirmed to be operating from the same version.
Version confusion was very high with the la
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You might be surprised to find just how few working people actually work in offices:
http://kff.org/other/state-ind... [kff.org]
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A few weeks ago, I looked at my checkbook and the last paper check I wrote was January. Of 2014.
Stuff is starting to change fast.
You used checks last year?
I don't think I've seen a checkbook or anyone using one after 1985.
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Yeah. Believe it or not, I had to write a check to cover my fantasy football league fees. The other players are a bunch of neighborhood guys who aren't hip to online banking yet.
I tried to pay in Bitcoins, but they threatened to kick my ass.
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A year or two back, someone in my office had to get a checkbook. He had never had a checkbook before. The reason to get the checkbook was not to make payments but to provide a "void" check to the company that processes our payroll.
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It sounds odd to me not to have se
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Any chance you have kids?
It seems every week or so one of my kids comes home with some school forms looking for money... and they take cash or check.
Since i pay for everything on cards and rarely carry cash, check it is and so i write a lot of them.
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My kid is in grad school. But I do remember all the school forms when she was in middle and high school. I wrote a lot of checks.
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People use checks? Seriously?
Can't really recall last time I even saw a check ... perhaps when I move from Aalborg and sold my apartment, where a lawyer sent me one ... so a decade ago.
For printing, outside of work, I use it only to print recipes for taking to the kitchen, or printing stuff for kids to colour in. Wife'll use it for printing badges for kids (laminated badges required by school); beyond that, no idea really.
Re:"Infringing"? (Score:4, Interesting)
It is not question of whether hard copies will be eliminated but how quickly it is finally reducing instead of a period when dot matrix printers first kicked in. One of the big wastes of paper was proof reading. Like many others I found proof reading on the screen inefficient and unreliable and needed to do it off a hard copy for any degree of accuracy, likely because of cathode ray tube displays and the visual problems they cause and this carried over into a habit even with LCD screens. I wonder how well the up and coming generation is going with proof reading on the screen rather than requiring a hard copy to check (think just there a nominal 50% reduction in paper use).
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Like many others I found proof reading on the screen inefficient and unreliable
Tee hee. Here's some free advice: you can double-space the text on the screen just like you can on paper.
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Hand up. Tickets. Airline tickets, movie tickets, concert tickets. And don't give me that stuff about scanning the barcode off my phone. IT DOESN'T WORK!
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Thats odd, all round Asia I used it perfectly well, and the last 3 weeks I have used it 5 times, in 3 different airports.
Oddly the only place I ever had ANY isue with teh US, Chicago last year. Made me miss my flight while I went to find unhelpful airline staff, so maybe its a local issue?
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Hand up. Tickets. Airline tickets, movie tickets, concert tickets. And don't give me that stuff about scanning the barcode off my phone. IT DOESN'T WORK!
I've never seen it not work, perhaps you should get a modern phone with a transflective display like they've all had since what, over a decade ago? My problem is that I don't have cellphone internet, because I am a PAYG customer, and therefore it's not really convenient for me to load a ticket on my phone.
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When I generate shipping labels daily for items I sell on Amazon, Etsy, eBay, and other sites, it would get rather expensive to attach a digital picture frame with a jpg of the label to each package.
Fortunately, I have an old HP Laserjet 4100 with enough refilled cartridges to last me a lifetime.
People just do not get it... (Score:5, Insightful)
The Times paints it as the latest attack on ownership in the age of DRM.
Only nobles and lord own land peon.
Welcome to subscription model everything, aka the internet of things, web 3.0, cloud connected pillows, etc.
What you do not own, you pay for in some way. What you do own you collect on, and guess what, there are only a few owners.
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It's amazing how willing the capitalist cheerleaders are to see a condition where corporations replace the communist state as owner of everything and the people own nothing even if they pay for it..
Re:Is there _any_ difference? (Score:4, Informative)
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I've been called paranoid and a conspiracy theorist for years, but even I am surprised by how directly our society seems to be headed towards feudalism.
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A capitalist democracy works if control isn't (strongly) bound to money. The more control certain companies have over your life, the less its a democracy, the more its feudalism, as companies are owned by few people, which isn't a bad thing by itself, this is how capitalism works.
Technology enables everybody who controls it to do more things. You can 3D print guns, you can build spyware into your lightbulbs. At the end of the day, our society has to answer the question: who should control all this new techn
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"our society has to answer the question: who should control all this new technology?"
Our society answered that question long ago, about the 17 or 18th century: "We, the people".
It is not "our society has to answer the question of who should control all [anything]" but "Are we, the individuals, up to the struggles it takes to own and retain society?"
Capitalism is going the way it's going, which is basically going back to feudalism, because, on one hand, there *is* a class conflict, that part Marx nailed it,
Makes as much sense as any patent. (Score:2)
A patent prevents you from using your property in the way you want. I can own metal and plastic but there are many configurations I am prohibited from arranging them because of patents. Why is this any different? The whole mess just needs to be done away with.
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In a world without patents or copyright, there would be only curiosity left to drive innovation. But curiosity isn't the force behind capitalism, behind the economy, greed is. Try to build a society out of curiosity, you'll fail. It might be possible with future technological advancements, when we don't need humans to work anymore because all work is done by machines, but not now.
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Not true. Pleasing customers drives innovation. Customers are very fickle and will leave your company if someone improves upon what you have. There are many industries that don't have patent protections and thrive with innovation.
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Customers are very fickle and will leave your company if someone improves upon what you have.
They won't leave you if the person who has done the improvement doesn't want to build a big company like yours, just to try whether they can make money with your invention. They enable people running a business much smaller than yours to challenge you [lawdit.co.uk]. Otherwise, you are just crunched.
There are many industries that don't have patent protections and thrive with innovation.
Can you give me examples?
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In a world without patents or copyright, there would be only curiosity left to drive innovation. But curiosity isn't the force behind capitalism, behind the economy, greed is. Try to build a society out of curiosity, you'll fail. It might be possible with future technological advancements, when we don't need humans to work anymore because all work is done by machines, but not now.
My God, you're so right! How did our ancestors ever manage to make things for thousands of years with no patents to protect them from new, more innovative competitors?
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For thousands of years, technological advancement was super slow (yea I know, it sounds like pirates vs temp [wikipedia.org], but this is real).
For thousands of years, we had almost no economy, everybody produced almost everything they needed themselves. Look at indigenous people around the world, they can mostly live without trading regularly, they only trade once per year for things like booze, or guns.
For thousands of years, we had no machines to do our job, we had tools. Our economy is focused at how to improve those m
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Damn! You're right! How could I have been so stupid? If only the ancient Egyptians had patents, we'd have had computers five thousand years ago!
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"In a world without patents or copyright, there would be only curiosity left to drive innovation."
That's obvious bullshit.
The real thing you wanted to say is "in a world without financial incentives only other non-financial incentives would drive innovation".
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Nosiree.
The force behind capitalism is a government to enforce contracts. I don't have to trust someone to do business with them. I only have to be able to make them live up to their agreement.
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The government relieves you of the obligation to build up a private army and punish contract breakers yourself.
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Credit card companies have figured out another way. Evaluate people's honesty with a credit score and base interest rates on their likelihood of paying you back.
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Patent law does not prevent you from arranging anything in any configuration you want. It only prevents you from selling the result.
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Very first paragraph of 35 USC 271 [cornell.edu]:
(a) Except as otherwise provided in this title, whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent therefor, infringes the patent.
Patent law (in the U.S. anyway) covers more than what y
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It doesn't stop you making anything. It stops you making money from making something or distributing it.
Nothing could stop me from manufacturing my own Lexmark cartridges and using them for my own personal use. Patent laws would stop me selling them or giving them away to other people.
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Many of those new products are not patented. Nobody is trying to stop you from reselling your Popeil Pocket Fisherman at a garage sale.
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Because you get to be the first one to bring them to market in order to make a profit.
I think OSX for my homebuilt 16-core machine would be innovative. Then I'd be able to run Logic Studio on my own hardware.
One example of how patents have stopped innovation. How do we know there aren't companies out there who could make machines to run OSX better than wh
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"Explain why anyone would take a financial risk to develop a new product ?"
Explain why anyone would take a financial risk to open a new shop in the town's mall. Well, exactly the same reason: for the profits' expectation.
"patents have not stopped innovation which is why we have new products every year"
You just reversed the burden of proof here: patents are a government-backed violence on the free flow of information, it is patents the ones that need to proof their value to society, not the other way around
They may be legally in the right (Score:3, Insightful)
Morally, of course, it's enough to want me to boycott the company, but legally, they may be in the right
The law may be on their side, but only
* If the patent infringement is not on the toner cartridge per se but on the method of refilling it, AND
* there is no non-infringing way to fill the cartridge that's economically viable, AND
* if the patent is legally sound. Patents whose claims are overly broad or which fail to take into account prior art may be shot down if someone else decides it's cost-effective to take the patent-owner to court or to ask the Patent Office to review the patent.
Yeah, it sucks, but short of either changing patent law or getting some court to rule that anti-trust and restriction-of-trade laws require the patent-holder to broadly license the patent to all comers on reasonable terms or make some other ruling that kills off this business practice, I don't see what can be done about it.
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Morally, of course, it's enough to want me to boycott the company, but legally, they may be in the right
Hmmm . . . If I recall correctly, Lexmark used to be the printer division of IBM, before IBM sold it off. Maybe Lexmark got a few IBM patent lawyers with the deal? In that case, you may be right that legally, that the law is on Lexmark's side.
At any rate, a big company that can afford a lot of lawyers . . . and a relatively poor re-filler company probably can't. So the re-filler can not afford to litigate this, because of the cause. In the "Justice" system, the one with the most money wins.
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The thing is, there's a strong public policy argument to be made against Lexmark in this case. The government (typically) wants people to recycle because it means less money spent hauling the stuff to a recycling center or landfill and less pollution to deal with later. There are actually several levels of federal recognition for facilities that recycle printer cartridges - the one most of those companies go for is one that guarantees they throw nothing away. Since refilling the cartridges and selling them
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Wouldn't Lexmark then argue that they should be the only ones refilling and reselling? I mean, we found this patent from 4 years ago that covers all the stuff you can do to refill it economically, so we're the only ones that can do the job!
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Legality doesn't make "right". Ever.
Since processes can be patented... (Score:2)
I may not like it very much, but I can sorta see the manufacturer winning this one, if that's the angle they take.
Of course, if the refiller uses a different technique for refilling than what the manufacturer's patent describes, then all bets are off... although an unscrupulous manufacturer may bu
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Yes. People have this idea in their mind that all intellectual property is the same, which causes confusion when litigation happens correctly. In this particular case, the debate will be whether or not Lexmark's patents are infringed by the process that the second-hand suppliers use, rather than the sale of the end product.
Richard Stallman has a good talk about the differences between the three main types of intellectual property, and says that anyone who tries to lump them together to be dealt with as a wh
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although an unscrupulous manufacturer...
This is an article about Lexmark... Lexmark and Keurig seem to be competing against each other to see who can be the most unscrupulous.
This isn't the first time they tried to pull this sort of trick. in the past it was copyright law via the DMCA here is a slashdot article [slashdot.org] from 2003
Upcoming next... (Score:2)
Burnt your break lights? Changed your AC filter? Used a generic brand name? I'll see you in court!
Right of first sale ... (Score:2)
This (should) come down to two things:
1) Right of first sale. It's a physical object you buy. It's yours to do with as you please.
2) There is absolutely no act of "inject ink into container" which could possibly have anything to do with a patent.
This is asshole corporations misusing IP laws to try to lock in their customers.
And it's yet another reason why Lexmark can go fuck themselves, and why every nerd should be telling their family "don't buy from them, they're assholes".
This not only needs to be ru
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> There is absolutely no act of "inject ink into container" which could possibly have anything to do with a patent.
Huh? Unless you do all your shopping in Amish country, just about every container of anything you buy, ink included, was filled by some patented machine.
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Yes, sure ... but even in Amish country Jedediah will sell you a funnel. And just because that container was filled via a patented, and the connector is probably patented ... that doesn't make it the only way to put something into it.
Putting liquid into a fucking container is NOT a patentable process ... hell, I can mostly fill a barrel with a drill, a hose, a
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"A system and methodology by which a liquid is placed into a container" is a one-line summary of what the patent is about, like the headline on a news article. It doesn’t mean the patent covers the entire idea of placing liquid into containers. I have no idea how broadly this patent is actually written, but I’m pretty sure it goes into more detail than that. It's a method of doing something, not every method of doing it.
Fuck Lexmark though, just on principle.
This very case came up here about two weeks ago! (Score:3)
The context was a move by Xerox to use copyright to prevent users from substituting third-party printer cartridges for their own. Supposedly such a substitution would require reverse-engineering their copyrighted lockout software preventing substitute cartridges.
At the time, this very Lexmark attempt to prevent refill of cartridges came up, and supposedly there had been a court decision preventing Lexmark from enforcing this rule.
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In the previous discussion, the appellate court decision against Lexmark was hailed as a grand opening up of the third-party replacement market for ink and tone cartridges. So the IP-industrial complex crushed our freedoms using a slightly different legal subterfuge this time - the effect is the same.
But wait until the TPP passes and we finally get to know what's in it. We will fondly look back on the freedoms we enjoy in the present day.
latest attack on ownership in the age of DRM. (Score:2)
What if the refilling service (Score:2)
can show that they used naked dwarves to refill the cartridges. Would that be enough to make the refill methods that much different?
Duty to keep alive? (Score:2)
I'm not quite sure what to call this, but I think all IP rights should be dependent on the rights holder actively using their rights, to avoid companies just sitting on beneficial technology or publishers sitting on old, but good literature etc. So, perhaps if a patent is passive, it should go into the public domain after a relatively short time. There are many patents that are kept off the market simply because the owners think it would not be pritable enough, and it would hurt their competitiveness.
Univer
The Copyright Clause is exclusive (Score:2)
If you want to prevail in a case of so-called "intellectual property" you should have to prove that having you prevailing goes in the direction of promoting "the Progress of Science and useful Arts", because any decision in your favor that wouldn't stand this test would be a blatant violation of the COTUS, and an abuse of power by whatever entity that made this decision.
Disclaimers: IANAL IANAUSC
Claimer: "intellectual property" isn't a fundamental right
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Correct you can import and resell copyrighted works, you don't make another copy, you legally obtained one somewhere in the world. They try to weasel around it with well that company only bought the rights to the original country so it should be null and void if imported.
The only valid claim lexmark should have would be trademark if somebody were selling them as original carts not refurbished.
Copyright exists to encourage people to make things, not to have an artificial tiered pricing scheme the world arou
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First Sale doctrine, surely, overrides that.
Bold print, 20% discount (Score:4, Insightful)
One court upheld it, another may not. The argument AGAINST Lexmark is pretty obvious. Two things argue FOR Lexmark. First, this has to do with discounted cartridges sold at a 20% discount IN EXCHANGE for agreeing to return them to Lexmark (and only Lexmark) for refurbishing. Cartridges without the discount and return agreement were widely available. Secondly, it's stipulated that the return provision was obvious on the signs and packaging, along with a statement "unrestricted catridges are available at Lexmark.com and elsewhere."
If I were the judge, I'd not allow Lexmark to REQUIRE consumers agree to those terms. But that's not what happened. I might ALLOW consumers to choose between an unrestricted catridge for $15 OR agreeing to return it in order to save $3. That's the case here. Consumers could have their cartridges refilled any where they please, or they could instead choose to get a discount by agreeing to return them only to Lexmark. In general, I have hard time making it illegal to offer consumers more choices.
Re:Bold print, 20% discount (Score:4, Insightful)
Was every store required to carry both SKUs? If the answer is "no" (and given how valuable shelf space is, I'd bet that it is), they're effectively forcing customers to buy what is readily available. And even if the answer is "yes", they still probably don't have a case.
Normally, a physical product (as opposed to something that has actual copyright protection) cannot be licensed. It can be sold, or it can be rented. Either the customer owns it or they don't. If they do, then they can do anything they want to with it. Once a product is sold, the original manufacturer has no legal right to limit its use. The SCOTUS has consistently tossed out attempts at post-sale restraint.
If a product is rented, there must be a legal contract in place, which means, among other things, that the customer must clearly understand that he or she is just renting the product, rather than buying it. If it looks too much like a sale, once again, post-sale restraint gets tossed out. And that's true even for cases involving patents.
I'd be utterly shocked if Lexmark won this, assuming it bubbles up to a high enough court. There's way too much case law precedent saying that they should get their a**es handed to them. It would require the courts doing a complete 180 from their consistent position on this issue over the last century.
Good point regarding precedent (Score:2)
You have a good point regarding precedent. Of course the landmark case specifically ruled "sold at full price", so it makes Lexmark sense that Lexmark is pointing out the discount.
Myself, I'm a bit conflicted. Obviously, some attempts to put limitations on things are unfair. On the other hand, I could see instances where agreements to sell with a condition make sense. Suppose I developed a tool for finding and buying things on eBay, which I successfully use for buying used RAID cards at the best prices
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What is "full price"? We're not talking about a product sold directly by the manufacturer here; it's a product sold by a store at an arbitrary price point. The discounted ink cartridge at Office Depot might cost the same as the non-discounted version from another local retailer, at which point even that theoretical consideration
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But that's an agreement between the consumer and Lexmark. It has nothing to do with the refiller, they were never a party to the agreement.
Aren't the IP rights for the cartridge exhausted by the first sale doctrine?
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Aside from the fact that they're suing the refilling company and not the consumer who you're saying is the one who agreed to it, let's pretend they're suing the consumer. So then it's really a question of how much power seller should implicitly have over consumers. If it's a contract the consumer signed, then this makes sense. But to have it be automatic by virtue of purchasing a product? Should companies have control over how their products are used once they are purchased? If I purchase a Kenmore ove
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If I were the judge, I'd not allow Lexmark to REQUIRE consumers agree to those terms. But that's not what happened. I might ALLOW consumers to choose between an unrestricted catridge for $15 OR agreeing to return it in order to save $3. That's the case here. Consumers could have their cartridges refilled any where they please, or they could instead choose to get a discount by agreeing to return them only to Lexmark. In general, I have hard time making it illegal to offer consumers more choices.
An interesting relevant law in my state is this:
N.C.G.S. 75-36. Certain contracts relating to toner or inkjet cartridges void and unenforceable as a matter of public policy.
Any provision in any agreement or contract that prohibits the reusing, remanufacturing, or refilling of a toner or inkjet cartridge is void and unenforceable as a matter of public policy. Nothing in this section shall prevent any maintenance contract that warrants the performance of equipment under the contract from requiring the use of new or specified toner or inkjet cartridges in the equipment under contract.
I'm no attorney but it appears there is only a very narrow scope (a maintenance contract on the printer itself?) under which Lexmark could enforce something like this in North Carolina.
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More importantly, there's no consideration. Once you have purchased the product, you own it, and presumptively have a legal right to use it. Lexmark might claim that they're giving consideration with their discount, but that discount was granted at the time of purchase, prior to when you were asked to agree to this so-called license. They have no legitimate legal right to demand further money after purchase in exchange for you not having to return something that you have purchased. Purchases don't work
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but my cat/dog/lizzard chewed the package open, now I have to use it!
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"Lots of ranting, no substance. By buying a Lexmark cartridge you are agreeing to the following [...]"
Only, no, you are not.
1) I was not informed about the contract *prior* to the exchange of money to be settled. All the conditions I'm bound to are those set before the money exchange.
2) Even without 1, this is an adhesion contract on terms I wasn't able to negotiate and the clause you cite is void and null because of the first-sale doctrine.
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And that is why Lexmark will fail. The first sale doctrine protects subsequent purchasers of a patented product from having to secure a license. Here, the refiller will be protected. Now if Lexmark wants to enforce this, they can go after the persons who originally bought the cartridges, if they can find them and if the legal costs and bad mojo are worth it to them. (I'm guessing not.)
This is not the first time a patent holder has threatened to enforce a patent beyond what the law permits. A weak patent tha
Re:DRM is code for You Are Serfs (Score:5, Insightful)
You dumb sonofabitch. Do you not know the difference between a corporate tax rate and how much a corporation actually pays?
http://money.cnn.com/2013/07/0... [cnn.com]
Corporations in the US pay about as much as Ireland, which is known for it's low corporate tax rate. And less than Hong Kong.
The difference between the corporate tax rate in the US and the corporate tax rates in the rest of the developed world is that the rest of the world actually means what they say. It's not just a dodge to make citizens feel like corporations are paying their fair share, as it is in the US.
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Corporate taxes in general get rolled into the purchase price of the item. You and I are de facto paying the taxes, regardless of what the legalities are, and the same is true for any other taxes or fees that are assessed prior to the sale of the finished item to the ultimate customer.
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It's not just a dodge to make citizens feel like corporations are paying their fair share, as it is in the US. Corporate taxes in general get rolled into the purchase price of the item. You and I are de facto paying the taxes, regardless of what the legalities are, and the same is true for any other taxes or fees that are assessed prior to the sale of the finished item to the ultimate customer.
No. The selling price of an item is not "cost + %markup", it is "what can the market bear". If the market can bear paying $100 for a widget that cost you $10 to produce, why the hell would you sell it for $15?
This whole "cost + %markup" myth has to go. Companies don't charge you based on what an items costs to produce, they charge based on what you are prepared to pay. Raising a copmpany's taxes may not necessarily mean an increased selling price of goods.
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"The only way a corporation could or would raise prices in order to cover the tax bill is if they could collude with everyone else in their industry to raise prices by exactly that amount. That's a federal crime."
Think for a moment about the consequences of what you say if that were true. Like... uh... anything would be sold for Zero... but, you see, thinks are not usually sold by nil, so something must be happening there, something like, let's see... like producers selling goods for a price that covers
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"The only way a corporation could or would raise prices in order to cover the tax bill is if they could collude with everyone else in their industry to raise prices by exactly that amount. That's a federal crime."
Think for a moment about the consequences of what you say if that were true. Like... uh... anything would be sold for Zero... but, you see, thinks are not usually sold by nil, so something must be happening there, something like, let's see... like producers selling goods for a price that covers *all* their costs (you know, raw materials, tooling, wages *and* taxes) plus, at least, what Adam Smith called an ordinary rate of profit.
Producers don't do that - they don't sell for cost + markup, they sell for what the market will bear.
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Think about that list of costs you just enumerated. "raw materials, tooling,
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The theoretical rate is high, the actual tax paid is low. Tax expemptions and credits and offshoring of profits have allowed US corporations to legally avoid most of the taxes they once paid.
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As long as you refill your milk carton with something other than milk, you're fine.
Cause the milk company only has a patent for putting milk into a milk carton.