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Copyright Office Rules Against Lexmark
SparkyTWP writes "'The United States Copyright Office has ruled in favour of Static Control Components, of Sanford, N.C., saying that its microchips do not contravene the Digital Millennium Copyright Act.' This was in regard to SCC making microchips that imitated Lexmark's in remanufactured printer cartridges. It appears Lexmark won't be able to do anything about third-party cartridges."
Exactly, most printer companies, especially in the low end area, depend on making $$$ off of people when they buy their uber-expensive cartridges. Personally I would like to see a company make an easy-to-refill inkjet cartridge and sell me the ink at a reasonable rate, and would be willing to spend more on the printer (though again, they make less in the long run).
I Am My Own Worst Enemy
This issue had no business involving copyright law. This should have been settled with patents (i.e. If Lexmark doesn't have any covering it's cartridge design, it's SOL). This was a perfect example of the concept of "Intellectual Property" clouding the distinction between copyrights, patents and trademarks. The fact of the matter is that Lexmark's business model is perfectly valid, and well documented, but they didn't want the time limitations imposed by patent law and they thought they could get around it. They should fire the legal team that gave them the advice that led them down this path, and wise investors should have left long ago after seeing all this money wasted on developing "protection" technology that depended on an untested legal concept to work.
Well, there's nothing wrong with them _trying_.
The problem is that copyright -- which is what Lexmark was trying to use, and is a monopoly -- is not intended to protect them from this sort of competition.
It is after all entirely possible that the razor/razor blade approach is not feasible with regards to printers. Lexmark should not be protected from fucking up; if they made a mistake with their pricing, it's their own damn problem.
-- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
It's not just lawyer bills... The injunction has halted the sale of SCC's smartek chips since feb 8... Nine months of lost sales for SCC and the cartridge remanufacturers who buy SCC's chips.
What kills me is that, in granting the preliminary injunction the judge had to consider the potential for damages (page 48)... he found that Lexmark would suffer "irreparable harm" in terms of lost sales and money. Excuse me, but I think those can be repaired with money. On the other hand, if SCC had been put out of business under a load of bogus legal bills it couldn't survive, I think it would have suffered irreparable harm.
HIV Crosses Species Barrier... into Muppets