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U.S. Supreme Court Refuses to Hear Lexmark Case

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.

32 of 220 comments (clear)

  1. Lexmark is no Nintendo by AKAImBatman · · Score: 5, Insightful
    It sounds like Lexmark thought they could pull a Nintendo 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. 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.
    1. Re:Lexmark is no Nintendo by Anonymous Coward · · Score: 4, Interesting

      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

      Lexmark Int'l, Inc. v. Static Control Components, Inc. at findlaw: http://caselaw.lp.findlaw.com/data2/circs/6th/0354 00p.pdf

    2. Re:Lexmark is no Nintendo by nuggetboy · · Score: 2, Insightful

      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.

    3. Re:Lexmark is no Nintendo by AKAImBatman · · Score: 5, Insightful

      Nonsense, they intended to trouser large sums of cash; the consequences for the public was never their concern.

      Have you ever watched a game show where you look at the contestants and yell, "I could do WAY better! This guy's an idiot! Where do they find these people!" I'm willing to bet, however, that you yourself wouldn't do much better if you were in their place. You have the benefit of your comfortable living room, no pressure, and nothing at stake. But put you up on stage and you may have the same difficulties that you found so offensive in the contestant.

      It's the same with Congress-critters. Believe it or not, many of them really are trying to do the right thing. That doesn't mean that they don't occasionally abuse their position (*cough*Post Stamps Scandal*cough*), but it does mean that they're not as inherently evil as everyone makes them out to be. They're just people trying to make the best decision they can on the limited information they have. That's why it can help a lot if you write your congress-person. An overwhelming degree of well thought out, public opinion can sway the opinion of a representative. Similarly, regular letters about a topic can sway opinion if a relevant bill hits the floor. These letters can also provide your representatives with insight that can be very helpful during debates.

      So, instead of complaining like a backseat driver, write your congress-critter and help them to understand your opinions.

  2. Disposable printers - the solution? by guyfromindia · · Score: 5, Funny

    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...

    1. Re:Disposable printers - the solution? by defkkon · · Score: 2, Informative
      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.

    2. Re:Disposable printers - the solution? by goldspider · · Score: 4, Insightful

      More trash, that's just what we need!

      --
      "Ask not what your country can do for you." --John F. Kennedy
    3. Re:Disposable printers - the solution? by Satan+Dumpling · · Score: 2, Interesting

      I agree, I love my Canon F60.
      http://consumer.usa.canon.com/ir/controller?act=Mo delDetailAct&fcategoryid=124&modelid=7174
      Lexmarks clog if you look at them funny. My Canon don't. Four separarate cartridges with no electronics in the cartridges, so cheap to replace.

    4. Re:Disposable printers - the solution? by Greyfox · · Score: 2, Insightful

      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.

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  3. Make a printer with a large cartidge by dextroz · · Score: 2, Interesting

    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...

    --
    Where's my free iPod!? Until then, I'll settle for a kiss...
    1. Re:Make a printer with a large cartidge by tlhIngan · · Score: 4, Insightful

      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?).

  4. please understand SCOTUS better by supernova87a · · Score: 5, Informative

    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.

    1. Re:please understand SCOTUS better by tweek · · Score: 4, Informative

      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.

      --
      "Fighting the underpants gnomes since 1998!" "Bruce Schneier knows the state of schroedinger's cat"
  5. Re:Lets hear it for the Supremes by dreamchaser · · Score: 3, Insightful

    Of course, if you read the actual article and paid attention to the summary, it was the Supremes that denied the recent petition for a writ of centorari...but that's probably asking too much of someone who has nothing positive to add to the thread so instead decides to nitpick (and get it wrong to boot).

  6. Re:Certiorari? by Anonymous Coward · · Score: 3, Informative

    Certiorari: A writ from a higher court to a lower one requesting a transcript of the proceedings of a case for review.

  7. Re:Lets hear it for the Supremes by dcsmith · · Score: 2, Informative
    Of course, if you read the summary above, it was a District Court of Appeals, not the Supremes....

    Yeah, I'd agree with you if it weren't for that inconvenient first sentence in the actual news article...

    "The United States Supreme Court has rejected Lexmark's petition for certiorari, upholding Static Control's position against the Digital Millennium Copyright Act (DMCA) and copyright issues raised by Lexmark in connection with Static Control's sale of Lexmark compatible chips.

    --
    This has been a test. If this had been an actual Sig, you would have been amused.
  8. It's my printer, isn't it? by xiando · · Score: 4, Insightful

    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..

    1. Re:It's my printer, isn't it? by greed · · Score: 2, Interesting
      But Fram oil filters work on your Ford and his Acura and my Honda. NGK spark plugs work on all of them. I'm able to hook up power to my Garmin GPSes and Cobra CB from the Honda 12V accessory circuit. I can use a ClearView, Rifle or Laminar windshield if I don't like the standard Honda one. I can put a Corbin or Russell seat on it, or a Givi top-box. I can put Mobil, Quaker State, Motul, or many other oils in the engine or final drive. I can put gasoline from any decent refinery into the fuel tank.

      In fact, the only thing that is a bit odd is the headlamp bulbs are a little weird; but they are easily adaptable to standard H4 bulbs, so that's no big deal either--and Honda isn't trying to sue anyone for making H4 adapter rings or telling people how to modify the headlamp assembly or an H4 bulb to fit it.

      And, finally, I do NOT expect all components from my older Honda (VF700C) to fit the new one (ST1100A); even wearables--I can't use the same brake pads, oil filter, fuel filter, water thermostat, fan thermostat, cylinder head gaskets, valve shims, and so on.

      I also can't use ink tanks from my Epson Stylus Color 740 in my Stylus Photo R200.

      But I can use the same paper....

  9. So, that's it, then by RealProgrammer · · Score: 3, Funny

    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.

    --
    sigs, as if you care.
    1. Re:So, that's it, then by xiando · · Score: 2, Insightful

      "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.

  10. "Monpoly" by Anonymous Coward · · Score: 2, Insightful

    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.

    1. Re:"Monpoly" by Anonymous Coward · · Score: 2, Informative

      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.

  11. Woo hoo. End the monopoly. by JustNiz · · Score: 2, Interesting

    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.

  12. Lexmark, the Printer Industry & cartridge cont by eniac79 · · Score: 5, Insightful
    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.

  13. Nay! by BlueUnderwear · · Score: 3, Informative
    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!

    --
    Say no to software patents.
    1. Re:Nay! by misterpies · · Score: 2, Interesting

      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.

      --
      The author of this post asserts his moral rights.
  14. fly my pretty-printer... by inmate · · Score: 3, Funny
    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.

    --
    --- blackironprison, where ignorance is bliss....
  15. OT: Rehnquist and O'Connor by sconeu · · Score: 3, Insightful

    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.

    --
    General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
    1. Re:OT: Rehnquist and O'Connor by tweek · · Score: 3, Insightful

      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.

      --
      "Fighting the underpants gnomes since 1998!" "Bruce Schneier knows the state of schroedinger's cat"
    2. Re:OT: Rehnquist and O'Connor by hawk · · Score: 2, Insightful

      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.

  16. Why is this different? by JoelMC · · Score: 2, Interesting

    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?

  17. Guess they didn't write enough checks by saleenS281 · · Score: 2, Insightful

    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".