Lexmark, HP Using Patent Law To Try To Block Replacement Ink Cartridges From The Market
from the there-is-no-free-market-in-black-gold dept
Want to know why it would cost $5.9 billion to fill an Olympic-sized swimming pool with printer ink? Perhaps look to our beloved US patent laws. Five years ago, we pointed out that HP was claiming that refill ink cartridges for its printers violated its patents, and that it was building up a team of scientists not to invent anything new -- but to analyze the chemical makeup of competitor's ink to see if they could hit them with a patent infringement lawsuit.Every so often, we hear another bunch of claims from HP about ink refillers infringing on its patents, and just a few weeks ago, we heard that HP was asking the US ITC to block the import of refill ink cartridges from foreign competitors, claiming patent infringement.
Not to be left out, it looks like HP competitor Lexmark is getting into the game as well, and has also asked the ITC to bar the import of ink refills from 24 companies. Lexmark is also suing those same companies in court, showing once again how the ITC loophole gives companies two bites at the same apple.
Of course, it's fascinating to see Lexmark jump into the patent infringement game on ink refills. After all, it famously tried and failed to use the DMCA and copyright law to stop ink refills. It was right after that when HP started using patent claims, so it looks like it took a bit of time for Lexmark to get together a patent plan.
Of course, would it be nice if, rather than relying on government granted monopolies to block perfectly legitimate competition, these companies actually competed in the marketplace? Or is that too much to ask?
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: ink, patents, printers
Companies: hp, itc, lexmark
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
1. Invent a product that costs $X to manufacture.
2. Sell product for $X plus healthy margin.
3. Find that no-one is willing to by product for $X+margin.
5. Blame consumers for being cheap.
6. Ask for government help to protect your business.
..Actually I guess that does sound familiar.
[ link to this | view in chronology ]
Re: Re:
7. learn to count.
[ link to this | view in chronology ]
Re:
Do you know that they have made it cheaper to replace your printer than the ink?. When my laser runs dry I buy another 1, because it costs less than the toner. I then sell the old printer & have another years guarantee. BUT THATS NOT MY FAULT IS IT?, its common sense..sheesh
[ link to this | view in chronology ]
Re: #2
If your business model can't handle a "cheap" customer, then maybe you need a new model.
[ link to this | view in chronology ]
Re: Re: #2
When I read this you are saying the same word twice ;)
[ link to this | view in chronology ]
Re:
Every other device with "official" replacement parts - from cars to cameras - has "unofficial" replacement parts to compete with. If printer manufacturers simply gave reasons to pay the extra for higher quality parts, they wouldn't have to resort to underhanded legal tactics to stop the other refills.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Probably a minority viewpoint
How would you feel if a company went through the garbage dump collecting empty Coke bottles, refilling them with their recipe, and selling at a lower price? Misled, at best--at worst, you don't wanna think about it.
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
This is a business model choice: should they make a fixed profit off every printer they sell, or should they keep making more and more profits off incredibly over-priced ink?
If they go for the first, they have to keep innovating to make better and better printers so people will keep buying new ones; if they go for the second, they have to make sure to have a monopoly on ink.
Consumers would benefit from the first option, but printer manufacturers would benefit from the second...
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
Puh-lease. You don't really believe they haven't recouped that money (x-fold) over the years? And no, printers aren't exactly rocket science either.
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
Its called recycling - The little postage paid envelope that comes with the ink allows you to return the empty one for re-filling free. Whats the problem? huh!
I buy only re-cycled ink carts, SAVE THE PLANET WOOOO!!!
No you are not in a minority. Humans waste everything they get their mitts on, and you are only human.
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
I'm supposed to feel sorry for HP or Lexmark now because their business model of selling cheap printers and expensive ink isn't to their liking? What the hell did they expect?
I would HAPPILY pay a premium on new printers if I didn't get jacked around on ink.
[ link to this | view in chronology ]
Re: Re: Probably a minority viewpoint
Ditto! ... Hell Ditto^3!
[ link to this | view in chronology ]
Cheap ink, good printer
http://www.lexmark.com/gowaybeyondprinting/?c=lex_20091030_501
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
This is not an emotional issue, who cares what the competition feels?
You wanna know why they had to do this?
Because the Japanese did it first they were selling their printers at a loss and making up on the ink, you think they stopped to think about their competitors feelings? yah right LoL
Now some people came along and found a way to make ink cartridges on their own or refill old ones what is the problem with that?
Printer manufacture's are owned a market now?
How about telephone companies should they have a monopoly on what devices connect to their networks?
How about car, planes, electric power, TV sets, sound systems, music equipment etc they all should have control of what people do with them after they are bought?
Sure why not, I want to see car manufacture's suing the accessory industry, I want to see the music equipment industry suing musicians for not paying them, I want to see TV sets which excludes competing equipment from functioning on them that would be great can you imagine how vibrant the market would be.
Yes we need to take into account the feeling of the manufacturer how rude we are, because they only have good intentions and never a corporation abused anything.
[ link to this | view in chronology ]
Re: Re: Probably a minority viewpoint
[ link to this | view in chronology ]
Re: Re: Probably a minority viewpoint
----
i'm guessing you're 'young-ish'. cause ma bell did exactly that with their landline service decades ago. we could only use their phones- princess models or square counter top models- plus there was a monthly lease fee.
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
Is the competitor's ink inferior in some way? Does it injure me as a consumer? Why should I care if HP and Lexmark can't make huge profit off of ink cartridges? HP and Lexmark could simply sell a more expensive printer.
Besides, when was the last time a printer was truly innovative? And I'm not talking about the addition of a color LCD screen or SD card reader.
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
Why? Because they know they can rape the customer for ink and make a bigger profit in the long run. They could adopt a more customer-friendly model of charging more for the printer and then allow customers to choose ink supplier (giving quality and other incentives to choose their brand - they're the ones with access to the technology after all), but this current rip-off model is too lucrative.
"These knock-offs simply refill or copy the technology of others and, without the huge development bill, can undercut the price of the genuine article."
The same can be said of replacement car tyres, water filters, light bulbs, SD cards, hell even printer paper. Yet, all of those industries thrive with official and "knock-off" brands co-exiting. Why should printer be any different?
"How would you feel if a company went through the garbage dump collecting empty Coke bottles, refilling them with their recipe, and selling at a lower price? "
Instead of building a hilariously inept strawman, how about we face the facts of what is happening. No, recycled food products sound like a very bad idea. But, Coke competes with Pepsi, RC and other cola brands but come out top. Why? Because their product is perceived as the best and many people are willing to pay a premium for it. Again, why should ink cartridges be any different?
[ link to this | view in chronology ]
Re: Probably a minority viewpoint
[ link to this | view in chronology ]
Ink vs Gasoline
Your argument is flawed. How would you feel about being forced to buy GM/FORD/TOYOTA/GELLY gasoline for your car at a price 20-100 times higher than market average?
[ link to this | view in chronology ]
This is old news, printer manufacturers have been trying to use patents to prevent competing companies from making competing ink for their printers for a long time. It's so sad .
[ link to this | view in chronology ]
Re: Lexmark, HP Using Patent law.
As for Lexmark, if they were to lower their prices for replacement cartridges, Maybe the consumer Might be inclined to buy their inks. Why anybody buys a Lexzmark printer in the first place, baffles the mind!!
As it stands, you can buy a Lexmark piece of junk printer for under $79.00, but the replacement ink cost over $100.00!!
Might as well buy a new printer every 3 months!!
When you buy a bundled package at any big box store, which printer do they usually/always include?
Why, Lexmark of course! They can't sell their printers, so might as well give them away!! :)
[ link to this | view in chronology ]
of course I will buy the cheapest ink out there
their business model is to sell you the product that you will have for awhile, the printer, then screw you over non stop for ink,
next the will start trying to sue for the fact that you aren't using "their" paper, that will be the next likely target
screw companies that operate that way, I got to have ink, sell it at reasonable prices and I would not buy competitors ink
[ link to this | view in chronology ]
printer ink
[ link to this | view in chronology ]
Re: printer ink
-ink insider
[ link to this | view in chronology ]
They chip their ink cart's. Which stops you from buying none Epson brand ink.
If you try a compatible then you risk it flooding your printer & ruining it, plus all the crap of it identifying the ink levels etc.
I would prefer to buy a more expensive printer that would allow me to buy compatible inks - so to bring the long term cost of ownership down.
That way printer manufacturers don't lose money & over time we save money.
But what do I know?.
[ link to this | view in chronology ]
Re:
They all have the microchip that ask for the code to work.
[ link to this | view in chronology ]
Competition is dead in America.
[ link to this | view in chronology ]
If I bought a new car for $10000, but servicing cost me $100 a time then the cost of ownership over 3 years would be $10300. No brainer buy the expensive car.
SO....
HP,Lexmark & Epson lose money on printer sales, because they have the most stupid business model ever conceived.
$50 for a printer & $60 to replace the ink.
or
$200 for a printer & $20 to replace ink.
Depending on the volumes of printing do the math... it would be cheaper to buy the more expensive printer.
Therefore the manufacturers don't lose money. And we save money!!!
Consumers aren't as stupid as some posters here make out.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
I bought a second printer, took the ink cartridges out of it, and returned it. The evil multinational corporation gave me a full refund. I got free ink. Win-win!
[ link to this | view in chronology ]
Re:
1) Buy printer for less than ink price
2) Buy new printer when needing new ink
3) Remove ink to use and sell printer
4) Profit!
[ link to this | view in chronology ]
Re: Re:
1) Buy new printer for less than ink price (to be aboveboard, it has to have real ink cartridges, not lame starter ones)
2) Remove and sell ink for just below market price
3) Sell printer with no ink for some non-zero price
4) Repeat
The question is whether anybody sells a printer with a full-on ink cartridge included.
[ link to this | view in chronology ]
Re: college kid buys a printer because it is cheaper than the ink
[ link to this | view in chronology ]
Re: Anonymous coward
[ link to this | view in chronology ]
I had the pleasure of cleaning up after an administrative disaster after one of my previous employers decided to order a couple of boxes of cheap ink for their printers. We'd wind up with cartridges that were dead out of the box, would clog up in a day or two, and would leak. Aside from the obvious technical problems, the ink didn't adhere to the page well and would readily smudge even a couple of minutes after printing.
It wasn't just one brand. In their infinite wisdom, after one set of cartridges flopped they decided to do the same thing with a couple of different alternative brands. When those had the same problems, they finally went back to the IT department's original suggestion -- buy genuine HP ink. No problems after that.
Despite the horribly inflated cost, the original manufacturers' ink is typically the best stuff that you can get for a printer. It's foolish for the printer manufacturers not to take advantage of that.
[ link to this | view in chronology ]
EU legislation
Over here the manufacturers have been told many years ago that this practice is anti-competitive and illegal and they've been fined as a result..
http://www.out-law.com/page-3234
[ link to this | view in chronology ]
Ink
[ link to this | view in chronology ]
cheap printers expensive ink.
get a good printer (laser) and on the long run it will cost way less.
stopped buying ink jet in 2001 when my printer cost me $60, but 3 weeks i realized ink cartridges will cost me 90.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
I would buy an expensive printer with really cheap ink any day
[ link to this | view in chronology ]
Re: I would buy an expensive printer with really cheap ink any day
[ link to this | view in chronology ]
Reverse Engineering
Like others I am appalled by statements that companies, if they spend mega dollars, should somehow be entitled to gouge the consumer to "recover" their investment. The free-market system is based on competition. If a company can't make money too bad, you go out of business.
[ link to this | view in chronology ]
Remember the only good thing HP has done for us is to buy and bury Compaq. As a tech I rejoiced when it happened because they got rid of a crap proprietary computer that was a repair nightmare. As a tech I have thrown away many mainboards for HP computers. The only thing salvageable is the hard drive, DVD and the memory. The rest is garbage made in China by the enemy.
[ link to this | view in chronology ]
Razor Blades, Film Cameras
old razor no good anymore. You must get a new one. By the way, new blades cost $10 ($12, $16, $22) now.
Film camera, low end, not too expensive. Film for camera $8; processing $20.
It's an old model; been around for years.
[ link to this | view in chronology ]
I ran out and bought one.
loved it.
It broke in 6 months.
I ran out and bought another one
Loved it.
It broke in 6 months.
Same problem.
I bought a $25 HP
I use knock off ink with no problems.
Still like the Kodak printers.
It's a shame they sucked.
[ link to this | view in chronology ]
Re: bought a kodak and it kept breaking
ink insider
[ link to this | view in chronology ]
not sure why.
my HP sips it in comparison.
[ link to this | view in chronology ]
What's ink?
Printing is truly a dying market, they'll probably sue us consumers for NOT printing anymore.
[ link to this | view in chronology ]
Re: What's ink?
Old guy: What are you doing?
New Hire: Just reading the email you sent out
Old guy: but you haven't printed it yet
New Hire: No need, I can read it just fine on the screen
Old Guy: You have to print it first
New Hire: why would I print it. That would just be a waste
Old Guy: Didn't you read the handbook? Section 123 of the revised code states that all material must be printed before consumption. Don't let me catch you doing this again or I'll be forced to write you up.
Somehow this seems way to close to a real possibility to me.
[ link to this | view in chronology ]
Re: Re: What's ink?
[ link to this | view in chronology ]
Re: Re: Re: What's ink?
[ link to this | view in chronology ]
And this is why print is dyeing (heh heh)
[ link to this | view in chronology ]
Last time I looked there were a large number of companies selling consumer printers, each of which competes against the others for the attention of consumers.
Competition does seem to be alive and well, but it is just that consumers would prefer prices to hover around $0.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
You are defining the wrong market.
In this case, we're defining the market for *ink* once you've bought a printer. And here is where it is not competitive. And that's the problem people see.
[ link to this | view in chronology ]
Cheaper yet is Brother laser products with refillable laser cartridges. There is an American ink company that sells toner to refill certain brother cartridges for $10 a bottle/fill. It is a little mess to do it, but you're saving big money over the Chinese made replacement cartridges that are $20-$40 a pop. Plus you're not dumping old cartridges into the landfill or shipping crap half way around the world, so it is better for the environment!
[ link to this | view in chronology ]
http://img.photobucket.com/albums/v 224/psycho_head_guy/image4477.jpg
It's really pathetic when a new printer (that comes with ink) is cheaper than replacement ink by itself.
[ link to this | view in chronology ]
I support third-party printer supplies
We are from the industry, by the industry, for the industry.
Hopefully we can suvive this.
[ link to this | view in chronology ]
http://www.pinskylaw.ca/News/patents_for_startups.htm
[ link to this | view in chronology ]
INK
[ link to this | view in chronology ]
Re: INK
[ link to this | view in chronology ]
[ link to this | view in chronology ]
I'm expected to have a pity party for HP or Lexmark now because their company structure of promoting inexpensive photo printers and dear ink isn't to their liking? What the heck did they expect?
I would HAPPILY pay a quality on new photo printers if I did not get jacked around on ink.
[ link to this | view in chronology ]