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Lexmark Invokes DMCA in Toner Suit

Rhyas writes "Seems as though Lexmark has decided it wants all the pie when it comes to the printing world, as they are suing a company that does reselling of chips that allow third party toner cartridges to work in Lexmark printers. Cindy Cohn, an attorney at the Electronic Frontier Foundation, said she expected more cases like the one brought by Lexmark. 'We have long said that the DMCA's potential use as an anti-competitive tool has been great,' Cohn said. 'Now we're seeing it happen.'" The European Union is taking action against the practice of embedding chips in printer cartridges which make it difficult for third parties to sell refills.

20 of 446 comments (clear)

  1. Re:DMca by Quila · · Score: 5, Informative

    The chips attached to the cartridges are, and they authenticate with the printer to allow the cartridge to be used.

  2. Oh, but they are by mericet · · Score: 2, Informative
    I for one am glad that I'm not a Kentucky citizen, ie. my taxes are being spent in part to entertain this trial.

    It is a federal court after all.

  3. Wow by finkployd · · Score: 4, Informative

    I would be concerned/offended/interested if it were a company that actually made GOOD printers that was doing this :)

    Lexmark printers are pretty much junk anyway (and their market share bears me out on that) so this will likely only hurt them.

    Now if HP or Epson try to pull this, I'll be alarmed.

    Finkployd

    1. Re:Wow by sacremon · · Score: 3, Informative

      Unfortunately, Lexmark engines are found in some special-use printers. An example that deal with are the Primera line of inkjet CD printers. They are all Lexmark engines, which means it's a crap shoot whether or not the print cartridge will actually work in your $1000+ printer.

      --
      If you can't beat them, embrace and extend them.
  4. Re:Terms of Agreement? by bsmoor01 · · Score: 2, Informative

    You got a prebate cartridge somehow. That was a goof by Lexmark.

    In case anyone else is wondering, Lexmark has a 'prebate' program where you can buy cartridges cheaper than 'non-prebate' cartridges. When you buy one of these, you have to agree to mail the cartridge back. When we would order them for the computer lab I worked in, they always came with a UPS label to mail it back. I'm pretty sure a printer is supposed to come with a regular cartridge.

  5. Magnuson-Moss applies here. by zerofoo · · Score: 5, Informative

    Remember IBM typewriter ribbons? IBM tried to pull this a long time ago saying 3rd party ribbons would void IBMs warranty. Magnuson-Moss was the result of this.

    This warranty act allows for 3rd party consumable replacement parts, and, in the event of a warranty claim, it is the burden of the warranty provider to prove the 3rd party product caused the damage.

    -ted

    1. Re:Magnuson-Moss applies here. by Anonymous Coward · · Score: 1, Informative

      I believe that Moss-Magnuson might (I thought it was Ross-Magnuson) indeed have application here. One major auto manufacturer tried to deny warranty claims due to a customer using aftermarket filters. The individual sued in court and on appeal (precedent setting), the court decided that if they restricted the customer to OEM filters, the OEM must provide the filters free of charge.

      Maybe you install an aftermarket cartridge and when it doesn't work, call for warranty service. If they refuse the ensuing court case gets all Lexmark owners free cartridges. Yeah, right.

  6. Car industry tried the same tactics by Baki · · Score: 5, Informative

    More and more car brands can/could be maintained and repaired only with proprietary equipment and electronics. Only selected dealers can rent this equipment, shutting out competition.

    Thus the car makers could make extra profits on car maintenance (inderectly through their dealer network) and make cars a bit cheaper to lock in/tempt the buyer.

    The EU also has forbidden this practice, and forces car makers to open the specifications of electronic and computer interfaces to the diagnostics subsystems. Also a new law enables each dealer to represent and repair any brand of car, i.e. it has become illegal for car makers to restrict the number of dealers (such as only those that do not do business with others) or to set up their own dealer network.

    I think it is the same tactics, one that has been prevented now, shall be prevented too for the print cartidge market and hopefully too for video consoles and the like.

    In general, the business model to almost give away some piece of equipment and then afterwards cash in on the required consumables or assecoires should be prevented, since it is misleading for the public and unethical.

    1. Re:Car industry tried the same tactics by homer_ca · · Score: 4, Informative

      It's illegal in the US too. They can't void your car warranty solely because you used aftermarket parts or did not get your car serviced at a dealer. It's called the Magnusson-Moss Act.

      They're also starting to crack down on manufacturers withholding service information like codes and tools from independant mechanics.

  7. Chips in tires by wiredog · · Score: 5, Informative
    Like this?

    Take, for example, an ugly, little wiggle-work of a thing that Michelin plans to implant in its tires, beginning in 2005. Gettys calls it a "radio frequency identification transponder," or an RFID.

    The RFID technology allows vital tire identification information-such as tire size, type, serial number, date of manufacture and speed rating-to be stored on a chip the size of a match head.


  8. What about automotive aftermarket mods by flahiker · · Score: 2, Informative

    Thera are a number of aftermarket companies who make modifications to the vehicle's stock program to alter its performance. The old way was to physically replace an eprom, or add a "chip". The new way is to use the vehicle's communication bus, pass a PROPRIETARY authentication algorithm, and then reflash the vehicle computer. In either case, the "new" program fundamentally contains the copyrighted code from the manufacturer plus a few slight parameter changes. And the authentication algorithm was definitely circumvented. The ramifications for this go beyond the chip companies. Aftermarket hardware such as turbo, blowers, cams, all require changes in the air / fuel ratio or timing to work. They can dammage the car otherwise. With modern EFI this can only be done by modifications to the vechicle's program.

  9. Re:anticompetitive tool by radish · · Score: 4, Informative

    It's not impossible at all. I'm in the UK (R2) and I buy most of my DVDs from overseas, either US (R1) or Australia (R4). Why? Because it's cheaper - yes, even including shipping half way around the world, australian DVDs are considerably cheaper than I can get them from UK based suppliers. It's a mad world I tell ya :)

    All you need is a multi-region player, most of the cheapo non-brand ones are multiregion from the box, and most of the decent ones can be chipped or hacked for $0-$50. I'm currently on a Pioneer which came ready-chipped from the supplier - it's all totally legal over here as region coding has no actual basis in law. I'm under the impression that multi-region players like the Apex are popular in the US (even though the quality sucks) but I'm not sure how easy it is to get decent players chipped over there.

    --

    ---- Den ene knappen er powerknapp, den andre er Bender voice knapp "Bite My Shiny Metal Ass"

  10. Lexmark Z45 License Agreement by rmohr02 · · Score: 3, Informative
    License Agreement

    PLEASE READ THE TERMS AND CONDITIONS OF THIS AGREEMENT CAREFULLY. IF YOU DO NOT AGREE WITH THE TERMS OF THIS LICENSE, PROMPTLY RETURN THE PRODUCT UNUSED AND REQUEST A REFUND OF THE AMOUNT YOU PAID. IF YOU ARE INSTALLING THIS SOFTWARE FOR USE BY OTHER PARTIES, YOU AGREE TO INFORM THE USERS THAT USE OF THE SOFTWARE INDICATES ACCEPTANCE OF THESE TERMS.
    LICENSE

    The software programs including all fonts ("Software") contained in this package are copyrighted and owned by Lexmark International, Inc. ("Lexmark") and/or its vendors, and are licensed (not sold) to you by Lexmark for use only on a single personal computer at a time. You may also store or install a copy of the Software on a server used only to install or run the Software on your other computers over an internal network; however, you must acquire a license for each separate computer on which the Software is installed or run from the server. Software consists of machine- readable instructions, audio/visual content (such as images and recordings) and accompanying materials. You may make a single copy of the Software solely for backup purposes or installation. You may not alter, decrypt, reverse assemble, reverse compile or otherwise translate the Software. You may not copy the Software into any public network. You may not sublicense or rent this Software to any third party, but you may transfer all of your rights under this Agreement if you retain no copies and transfer all of the Software and this Agreement, provided that the recipient agrees to the terms of this Agreement.

    You agree that you will not use, run, manipulate, install or implement the Software, in whole or in part, in any manner that has the effect of overriding, modifying, eliminating, obscuring, altering or de-emphasizing the visual appearance of any trademark, trade name, trade dress or intellectual property notice that appears on any computer display screens normally generated by, or as a result of, the Software.
    STATEMENT OF LIMITED WARRANTY

    Lexmark provides a three-month limited warranty, as measured from the date of delivery to the original customer, on the media (e.g., diskette or compact disk) on which the Software is furnished.

    WITH THE EXCEPTION OF THE EXPRESS WARRANTY DESCRIBED ABOVE (APPLICABLE TO MEDIA ONLY), THE SOFTWARE IS NOT WARRANTED AND IS PROVIDED "AS IS." THE WARRANTY DESCRIBED ABOVE REPLACES ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Some jurisdictions do not allow the exclusion of implied warranties, so the above exclusion may not apply to you.
    LIMITATION OF REMEDIES

    Lexmark's entire liability, including that of its vendors, subsidiaries and resellers, and your exclusive remedy shall be as follows: Lexmark will provide the express warranty described above. If Lexmark does not remedy defective media as warranted, you may terminate your license and your money will be refunded upon the return of all of your copies of the Software.

    For any claim arising out of Lexmark's limited warranty, or for any other claim whatsoever related to the subject matter of this Agreement, Lexmark's liability for all types of damages, regardless of the form of action or basis (including contract, breach, estoppel, negligence, misrepresentation, or tort), shall be limited to the greater of $5,000 or the money paid to Lexmark or its Authorized remarketers for the license hereunder for the Software that caused the damages or that is the subject matter of, or is directly related to, the cause of action. This limitation will not apply to claims for personal injury or damages to real or tangible personal property caused by Lexmark's negligence.

    IN NO EVENT WILL LEXMARK BE LIABLE FOR ANY LOST PROFITS, LOST SAVINGS, OR ANY INCIDENTAL DAMAGES OR OTHER CONSEQUENTIAL DAMAGES, EVEN IF LEXMARK OR ITS REMARKETERS HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY YOU BASED ON A THIRD PARTY CLAIM.
    Some jurisdictions do not allow the limitation or exclusion of incidental or consequential damages so the above limitation or exclusion may not apply to you.

    IN NO EVENT WILL LEXMARK BE LIABLE FOR ANY INTERRUPTION OF USE OR ANY LOSS OF, INACCURACY IN, OR DAMAGE TO, DATA OR RECORDS.
    GENERAL

    You may terminate your license at any time by destroying all your copies of the Software or as otherwise described in these terms. Lexmark may terminate your license if you fail to comply with these terms. Upon such termination, you agree to destroy all your copies of the Software. Any attempt to sublicense, rent, lease or assign, or (except as expressly provided herein) to transfer any copy of the Software is void. You agree that you are responsible for payment of any taxes, including personal property taxes, resulting from this Agreement. No action, regardless of form, arising out of this Agreement may be brought by either party more than two years after the cause of action has arisen. This Agreement is governed by the laws of the country in which you acquired the Software. If you acquired the Software in the United States, the law of the Commonwealth of Kentucky shall govern.
    UNITED STATES GOVERNMENT RESTRICTED RIGHTS

    The Software has been developed entirely at private expense and is provided with RESTRICTED RIGHTS. Use, duplication and disclosure by the Government is subject to restrictions as set forth in subparagraph (c) (1) (ii) of the Rights in Technical Data and Computer Software clause at DFARS 252.227-7013 and in similar FAR provisions (or any equivalent agency regulation or contract clause).
    That only governs the software, but it's the only "agreement" I made with Lexmark, and it doesn't say a damn thing about having to buy marked-up ink cartridges.
  11. Re:i agree by worthb · · Score: 5, Informative

    These are not $30 inkjet cartridges, more like $300+ laser printer toner cartridges. The printer I bought last year is no longer available this year, and guess what, the toner cartridge for this year's model is more expensive, by about $50, even though they look almost identical.

    Others have suggested that Lexmark is trying to recoup their losses from selling their printers as a loss leader, but again we aren't talking about $89 inkjet printers. These are $1,100 laser printers. I really can't believe the hardware is sold at a loss.

    When the toner runs out, I have 2 choices. I can pay lexmark $300 for a replacement cartridge, or I can take it down the street and have it rebuilt (toner refilled, image drum replaced, wiper blades and other internal parts replaced, etc) for $150 and the print quality is just as good. The guy that refills them for me says that $50 of that cost is for the computer chip that has to be replaced each time. If the print quality is still good, the cartridge can be refilled, without having to be rebuilt, but the chip still has to be replaced.

    You see, if you simply refill the cartridge, and try and put it back into the printer, the printer says "wait a minute, last time I saw this cartridge, he was empty, and now he's full. Something fishy is going on here, so I'm not going to let him print".

    We have used Lexmark laser printers exclusively for the last 8-10 years, and have been pleased with them from a quality standpoint (we are producing camera ready copy for printing, so quality is important) but over the years, the printers haven't gotten any cheaper but the toner costs have tripled. It's getting hard to justify staying with lexmark when they have such a restrictive business model, not to mention the environmental costs of having to buy a new cartridge each time as opposed to reclycling a perfectly good cartridge.

    Then there's their "prebate" program where they charge you an additional $50 for a non-prebate cartridge (with a prebate cartridge you agree to return the empty cartridge to lexmark and not have it refilled). Lexmark's justification is that for the extra $50, you gain unrestricted use of the cartridge, and can refill it if you like, but guess what, now that they are destroying the aftermarket chip suppliers, you won't be able to use the cartridge that you paid extra for, because you won't be able reuse it without a chip. Figure that out. Basically it's a EULA for toner cartridges.

    --
    "the universal aptitude for ineptitude makes any human accomplishment an incredible miracle" - Stapp's Law
  12. Re:Hmm (OT) by dissy · · Score: 5, Informative

    Off the origonal topic here, but just wanted to give you some more information about the consoles.

    The NES had no protection. I used to write code for it (amature) and if you feed it asm it will run it.

    The only 'special' chips used are the (many many) different memory bank controllers.

    But there is nothing from stopping one from making their own (As each game company seemed to have done) or even not using one if your ROM needs are small.

    Im also pretty sure the SNES had no protection either, but wont swear to this.

    The first sega console (The Master System) had no protection either.

    The first system from Nintendo I saw with protection was the gameboy.
    Its protection was the nintendo logo bitmap was not only in your code, but in the firmware of the gameboy itself.
    It would display the logo in your rom image, and then the firmware would compare that bitmap with its copy. It would only continue to run if they matched.

    What this means is to make playable gameboy software, you had to put nintendo's logo in it. The logic is doing so is a copyright violation or something.

    Even systems as recent as the dreamcast and PS1 only used this form of protection, which is a Good thing (tm) because once the systems are discontinued and not cared for, hobbiest can write code, infringe on the copyright, and Nintendo not really care.

    Only with Really recent systems such as the PS2, xbox, etc are there actual real technical measures and special data needed to even get code to run.

  13. Defendent's website chock full of good info! by morcheeba · · Score: 4, Informative

    Static control has a section of their website devoted to descibing the obstacles they face. It features a whitepaper describing the technical challenges (some of these chips are full-custom and some are RF), a letter from their CEO, and a whole lot of information on printer security chips.

  14. Just buy Canon by mao+che+minh · · Score: 4, Informative
    Canon doesn't try to restrict what cartridges can be used with their printers. All Canon does is refuse to honor the warranty for damages caused by non-approved material, and of course, they can't guarantee you that the third party products will operate to optimal unit specs.

    For example, let's say that you have a Canon ImageClass C2100 color laser copier. You go to CompUSA and buy some generic brand of high gloss paper that claims to be compatible. You pop a sheet in, and the third sheet melts in your fuser. Canon will not always honor the damage caused by that third party product, of course, because Canon has no way of testing the material beforehand, and they have no control over the third party's production techniques and claims. On the other hand, if you use approved Canon media and supplies, then you have nothing to fear under their very nice and expansive warranty.

    Furthermore, this is no secret, but Canon manufactures almost all HP engines. Almost all other manufacturers lease out many Canon patents to make their stuff work. Why bother going second-hand when you can just buy directly from the source?

    Yes, I am a satisfied Canon customer of three years. After dealing with Lexmark and HP for years at my past job, I couldn't dream of ever switching from Canon.

  15. Re:Hang on a minute... by bezuwork's+friend · · Score: 3, Informative
    By your example a toilet roll holder manufacturer could take action against anyone else making toilet roll.

    At work I recently researched an issue involving the repair vs reconstruction doctrine governing patented items. I ran across a case which I kept because it was funny. A suit for infringement was brought by the owner of a toilet paper holder against a company who manufactured replacement toilet rolls. The case is Morgan Envelope Co. v. Albany Preforated Wrapping Paper Co., 152 US 425 (1984). The patent did cover the combination of the holder and roll. It went to the Supreme Court, but the patentee lost.

  16. Re:Hmm (OT) by delus10n0 · · Score: 5, Informative

    Sorry, but you're wrong on both the NES and SNES protection. They did have protection, and it was circumvented (as usual):

    NES:

    http://nintendope.iodized.net/thisoldnes/lock.tx t

    SNES:

    http://www.thepong.com/Sites/Left/Nintendo/SNTec h. htm

    --
    Not All Who Wander Are Lost
  17. This has nothing to do with copyright infringement by WinPimp2K · · Score: 5, Informative
    No, they are not claiming copyright violation. They are claiming violation of the "anti-cirumvention" clause in the DMCA. Please understand that the only way this involves copyright is that they have a copyright on the software in their printers.

    The way the DMCA is written - and this is exactly the way that Lexmark is using it - is that the third party chips are allowing ACCESS to a "protected" copyrighted work. It doesn't matter that the copyright on the work is not being infringed (you are not copying it after all). All that matters is that you are gaining access to it.

    This "exploit" of the DMCA was identified long before it became law. Oh well, when the Librarian of Congress is required to report again on the DMCA maybe he can address this issue as he has decrypting the blacklists in censorware.

    --

    You either believe in rational thought or you don't