Legal Issues

by Mike Masnick

HP Tells Retailers They're Infringing Patents By Refilling Ink Cartridges

from the any-way-possible-to-stop-the-competition dept

The various makers of inkjet printers have been particularly nasty in trying to protect their market. As most of you know, they have a razor/razor blades model of doing business. They sell the printers cheap, and then load up on selling you expensive ink. The ink, you'll recall, costs more than expensive perfume, whiskey, or vintage champagne. Apparently, if you filled an Olympic-sized swimming pool with inkjet ink at retail prices, it would cost you $6 billion (yes, with a b). On top of that, there have been reports (disputed by the printer companies) that many of the ink cartridges are designed to "expire" before the ink is actually gone -- boosting revenue even more.

With that in mind, you can understand why the companies involved may pull out all the stops to prevent any competition in selling ink for their printers. A favorite of the companies is to use any and all forms of intellectual property laws to stop competitive sales. Lexmark was a big fan of using the DMCA to claim a competitor was violating copyright law. Luckily the courts slapped down that clear misuse of the DMCA (multiple times). So, without copyright law, how about trademark violations for those selling "unauthorized" printer products? However, in recent months, it's been patents that the printer firms have focused on. Epson went after a bunch of retailers who sold refilled ink cartridges claiming patent infringement, and successfully convinced some to stop. Now, it's HP's turn. The company already went after those who actually refill the cartridges, but now they've decided to go after big name retailers who will refill your cartridges for you. Specifically, they're targeting Walgreens and Office Max -- though, they say they're coming to an agreement. It's hard to see how anyone could get a patent on refilling an ink cartridge, but this is a clear example of simply trying to kill off any competition, rather than promote innovation.

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  1. identicon
    fanboy13, 22 Jun 2006 @ 5:39pm

    "I applaud techDirt readers for being idealistic and inventive in trying to break down monopolistic practices, but let's not confuse idealism with reality. Reality is that most people don't use their printers enough to mind paying a high price to replace cartridges (I buy maybe 2 black, and 1 color every year or so), and the printer companies know that."

    i applaud you for figuring out that most people will not bother to refill their ink cartriges because of the fuss, but you might have forgotten that you are in techdirt where most denizens knows how to overclock a machine. and since most of the people here have problems with authorities, thats why we hate proprietary lock-ins/lock-outs... but hey, thats the reason why some people still have jobs.

    "Their business model is actually really smart, give away the part that actually does cost money, but will last a long time (the printer), and bleed you dry on the stuff that's cheap to make and has a rather short shelf-life (ink). Basically, you create a huge and guaranteed revenue stream that you couldn't get by doing it the other way around (in fact, that's the way they used to sell dot matrix printers, expensive printers, cheap ribbons, not as smart an idea)."

    yah... sounds like gaming console business.. give away the main product at loss but you have guaranteed income from game licenses. so, if you are smart enough, why not make friends with your enemies and provide licenses to their products for a small cost then market your inks better and start pricing them a bit lower from their current prices... since you just oem your inks from taiwan.

    the other possible reason why they are pricing the inks more than the product is to secure the cashflow from consumables to cover some production costs and possible warranty service of the product while it is still within the life expectancy of the whole product, if not just the head.

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