Keurig CEO Sort Of (But Not Really) Apologizes For Company's Ridiculous Foray Into Obnoxious Coffee DRM

from the We're-sorry-for-being-a-little-too-innovative dept

You'll recall how last year, Keurig Green Mountain created a surprising, negative public relations tsunami with the news it would be using a form of "coffee DRM" in its latest Keurig 2.0 coffee maker. The new technology basically prevented anyone from being able to use refill pods from competitors, or any of the more environmentally-friendly, more cost-effective refillable pods available online. Company CEO Brian Kelley and Keurig's marketing department then made matters dramatically worse when they tried to claim the ham-fisted market lockdown was "critical for performance and safety reasons."

The story got notably more amusing when "hackers" started defeating the company's DRM measures with rather low-brow hacks consisting of pieces of Scotch tape. Competitors similarly began either developing pods that quickly defeated the embedded technology, or gave away plastic clips that confused the system into accepting competitors' pods. In short, what Keurig thought was a clever way to lock down a market and make extra money, wound up making the company look like a tone-deaf, anti-competitive, mechanical dinosaur powered by over-caffeinated nitwits.

A little more than a year after the embarrassing saga began, Keurig appears to finally be beginning a not-entirely graceful about-face on the matter. After the company's stock took a notable nose dive and sales of brewers and accessories dropped 23% last quarter, Kelley claims he's now seen the error of his ways. Sort of.

Reading the actual transcript of Keurig's latest earnings call, Kelley still can't help but minimize the backlash as the concerns of a "small percentage" of "passionate" users. Meanwhile, while Keurig focuses heavily on the fact it was wrong for pulling the company's own, reusable "My K Cup" from the market, the fact Keurig tried to bulldoze its way to market domination via obnoxious, heavy-handed DRM is, as you might expect, downplayed dramatically:

"I would tell you the other thing we heard loud and clear from the consumer while very small percent of consumers, a very vocal and intense, passionate consumer who really wanted the my K-cup back, what we learned that it’s important the message and the signal that it sends, the ethos that it sends is that we want consumers to be able to brew every brand, any brand of coffee in their machine and bringing the my K-cup back allows that.

...My K-cup wasn’t going to work with a new system as the new system had to identify the pod versus a carafe, so we took the My K-cup away and quite honestly we’re wrong. We missed, we didn’t – we underestimated, it’s the easiest way to say, we underestimated the passion that consumer had for this. And when we did it, and we realized it, we’re bringing it back because it was we missed it. We shouldn’t have taken it away, we did. We are bringing it back.

So yes, while it's great to hear the company admit it was "wrong," Kelley only admits to being wrong for pulling Keurig's own reusable pod from the market, not necessarily for trying to block all competing products -- or for spending a year trying to argue that the ridiculous foray into DRM was necessary for the safety and security of Keurig's products. Meanwhile it's still apparently going to take Keurig until Christmas to re-introduce its own, refillable pod, and, contrary to media coverage, there's no clear statement here that the company's planning to back away from coffee DRM entirely. Still, it's at least a partial victory, and Keurig's sort-of-mea-culpa is the perfect way to belatedly celebrate this week's International Day Against DRM.

Filed Under: brian kelley, coffee, coffee drm, drm, keurig
Companies: green mountain roasters, keurig

Keurig Competitor Offers Free Hack Workaround For Keurig's Absurd Java Bean DRM

from the you-do-it-to-yourself dept

We've of course been covering for some time Keurig's attempt to lock down the coffee pod market via the "java DRM" it embedded in its latest Keurig 2.0 coffee maker. The technology effectively tries to stop consumers from being able to use competitors' replacement pods (or the reusable pods), something the company's CEO originally (and quite feebly) tried to insist was necessary for the performance of the product and safety of the consumer. Not surprisingly, the effort resulted in a lot of mockery and a number of lawsuits, and it didn't take long for consumers to figure out ridiculously simple ways to beat the technology.

In an entirely new level of entertainment, Keurig competitors have now taken things one step further, and are giving away free Keurig 2.0 hacks that allow consumers to use whatever pods they like. Rogers Family Company Coffee and Tea's new plastic "Freedom Clip" simply attaches to the inside of the maker and fools the embedded scanner into believing all inserted coffee pods have been sanctioned by the great Keurig coffee authorities on high:Granted you can do the same thing with a piece of tape, but it's a more permanent and convenient solution for those who still insist on using a Keurig (instead of a traditional espresso machine like a civilized person). Rogers is, of course, milking Keurig's ham-fisted attempt at market dominance for all it's worth over at the company website:

"It does this by visually identifying a special ink on the lidding. Any cup without this “special” ink is rejected by the machine thus ensuring Keurig’s marketplace dominance. While other companies are quickly working to adopt this special ink to their cups we at Rogers Family Company believe that your right to choose any option is imperative...This clip is our gift to you. Now go forth and brew with freedom."

So really, all Keurig managed to accomplish with its ham-fisted java-bean DRM is make itself look incompetent and greedy, while at the same time giving competitors a massive new marketing opportunity by offering choice and freedom back to Keurig customers. Surely these lessons will be reflected in Keurig 3.0, right?

Filed Under: advertising, coffee, drm, hack, keurig
Companies: green mountain roasters, keurig, rogers, rogers family company coffee and tea

Keurig's Controversial Java 'DRM' Defeated By A Single Piece Of Scotch Tape

from the kids-these-days-just-like-a-challenge dept

You'll recall that earlier this year, news leaked out that Keurig's latest pod-based coffee maker (Keurig 2.0) would come complete with the java-bean equivalent of DRM, preventing the device from using third-party pods -- or reusable pods that allow users to simply use regular ground coffee. After the story gained traction, Keurig quickly went into damage control mode, insisting that the DRM was necessary to bring consumers "interactive-enabled benefits." The company's CEO then compounded the silliness, issuing a statement claiming that the DRM was "critical for performance and safety reasons."

By summertime, those claims had all proven to be bunk, lawsuits had arrived and competitors had figured out how to crack the DRM's code, allowing them to once again manufacture pods for the new units. By last month, consumers had started figuring out ways to bypass the DRM using magnets or other modifications, something the company recently claimed was simply because people really like a challenge and overcoming hurdles:

Frustrated coffee drinkers who have "hacked" their way around pod roadblocks built into the new Keurig brewers may just be looking for a hurdle to overcome, says the president of Keurig Canada Inc. "There are some, when you give them a challenge, they'll really get at it," Stephane Glorieux said in an interview Monday."Whatever you throw at them, they'll find some way of doing it."

As it turns out, some folks have found that all it takes to defeat the DRM is a single piece of Scotch Tape (and a previously-used official k-cup):Of course you (and your piece of tape) are the very worst sort of villain for violating anti-circumvention laws, even though it's Keurig that's engaged in anti-competitive behavior and making customers jump through hoops. Meanwhile, annoyance at Keurig has been gaining momentum the last few months in Canada, with a growing number of competitors and smaller companies filing formal complaints with Canda's Competition Bureau. This includes companies interested in making biodegradable pods to help tackle one of the worst parts of the pod coffee craze: the environmental impact of millions of plastic k-cups.

Filed Under: circumvention, coffee, drm, keurig, scotch tape, technology protection measures
Companies: green mountain roasters, keurig

Keurig's Coffee DRM Already Cracked By Competitors; Will There Be A Lawsuit?

from the wait-and-see... dept

Earlier this year, we wrote about Green Mountain Coffee Roasters, maker of the infamous Keurig single cup coffee makers, and its plan to DRM its next generation coffee pods. The original pods were going off patent, and competition was rising. So, of course, the solution is to come up with something new... and lock it down to make it less useful for consumers. When that story went viral, Team Keurig tried to spin the story, claiming the DRM would provide "interactive-enabled benefits" and would improve users' safety. Of course, when the system finally started showing up a couple months ago, people quickly realized it had nothing to do with safety, and the "interactive-enabled benefits" seemed to consist mainly of being able to distinguish a carafe-sized pod from a single cup-sized pod. Oh yeah, and to block out competing pods so that Keurig pods can be priced artificially high. Interactive! Enabled! Benefits!

Except... as RomanOnARiver alerts us, it appears that Keurig competitors have already figured out ways to crack the DRM. TreeHouse Foods very quickly announced that it would be able to break the DRM. Meanwhile, Mother Parkers' RealCup has just announced that its pods are compatible with Keurig's DRM. It's a little unclear from the press release if Mother Parkers cracked the DRM or came to a deal with Green Mountain, though it sure sounds like it was internal work:

"We are very pleased that our focus on innovation, quality, and freedom of choice has led to new technology that will produce authentic tasting coffee and tea products in all K-Cup type single-serve brewers, both old and new styles," said Bill VandenBygaart, Vice President of Business Development for Mother Parkers. "Standard size capsule brews, as well as larger carafe and multi-serve formats, will soon be available for independent brands of single-serve capsules. Consumers will be the ultimate winners by having the best tasting coffees and teas available."

TreeHouse had already sued Green Mountain over the new DRM, but the bigger question is if Green Mountain would try to stop anyone from reverse engineering and cracking the new DRM. That would present an interesting legal fight...

Filed Under: coffee, drm, keurig, pods, realcup
Companies: green mountaint roasters, keurig, mother parkers, treehouse foods

Keurig Begins Demonstrating Its Coffee DRM System; As Expected, It Has Nothing To Do With 'Safety'

from the it-has-to-do-with-expired-patents dept

Back in March, we told you about how the famed makers of the Keurig single-cup coffee brewing "pod" contraption was about to launch a new version with DRM. A competitor, Treehouse Foods, was taking Keurig makers Green Mountain Coffee Roasters to court over this attempt to block them out of the market. To say that post got a lot of attention would be a bit of an understatement. Green Mountain tried to hit back by claiming that the new DRM was about adding "interactive-enabled benefits" and safety to the single-cup coffee space. Because, you know, it was so unsafe before. And, besides, who doesn't want more "interactive-enabled benefits" with their first cup of java in the morning?

Keurig has now started demonstrating the new system, and it's exactly what everyone feared: a DRM system to make coffee pods more expensive and to keep out competitors' refills.

When the Keurig employee tried to use an old-model pod, one without a new ink marker on the foil top, the brewer wouldn’t run. "Oops!" read a message on the touchscreen display, explaining that the machine only works with specially designed pods and directing the user to a Keurig website and helpline. The employee wouldn’t elaborate on how it worked, except to say that the ink is proprietary and inspired by counterfeiting technology used by the US Mint. Ian Tinkler, Keurig’s vice president of brewer engineering, went into a bit more detail, explaining that an infrared light shines on the ink marking and registers the wavelength of the light reflected back.

What about those promised interactive-enabled benefits? As far as I can tell, they appear to be the following:

With its new machine, Keurig is combining its two main product lines, the single-cup brewer and the carafe-brewing Vue.... The anti-counterfeiting system doubles as a way to distinguish between carafe-size pods and regular ones. If the sensor detects the green dot that marks carafe cups, it brews a large pot. If it detects the ring of black symbols on the standard pod, it brews a smaller cup. If it doesn’t detect a Keurig-approved marking at all, it tells you "oops!"

Yes, the "interactive-enabled benefits" will apparently maybe kinda save you from having to push a button or flip a switch between "cup" and "carafe." Of course, it could do that same thing without a bogus code designed to block out competitor refills and just compete on the quality of its coffee. But, who wants to do that?

Of course, that story at the Verge also reveals why Keurig/Green Mountain Roasters is really doing all of this:

In September 2012 key patents on its K-Cups expired

*Ding* *Ding* *Ding*. We have a winner. None of this has anything to do with safety or benefits. It has to do with doing anything possible to avoid competing in the marketplace. There are lots of ways to play in a market and compete. One is to try to add more value than your competitors. Another is to try to block your competitors by taking away value. I never understand companies that seek to do the latter, but that's what Keurig has decided to do.

Filed Under: coffee, coffee drm, coffee pods, competition, drm, keurig, patents, single cup
Companies: green mountain coffee roasters, keurig, treehouse foods

Keurig Insists Coffee DRM Brings 'Interactive-Enabled Benefits' And Is For Your Own Safety

from the I-got-this-scar-from-my-coffee-maker dept

As we recently discussed, Keurig is busy making plans to embed new technology in their new "Keurig 2.0" line of coffee makers that will reject unsanctioned (read: less expensive, competing) coffee pods. The technology would also presumably prevent the use of manual re-usable filters, which are usually found for between five and fifteen bucks online. Keurig's CEO announced the plans to reject "unlicensed pods" last fall, but somehow nobody seemed to really notice the effort until an annoyed competitor pointed it out in a lawsuit (pdf).

Needless to say, Keurig users and the general public weren't particularly enamored of Keurig's plans to lock down their brewing options, with countless users taking to Twitter to complain. The company didn't seem prepared to handle the media reaction to their plans for java-based "DRM." Nor did they seem prepared to give anybody a straight answer, even though their own CEO already confirmed the pod-blocking functionality. As such, Keurig simply started insisting to anyone that asked that the new technology delivered "interactive-enabled benefits":As you might be able to tell, it appears the company is unwilling to directly acknowledge the fact that they're locking out competitors' less expensive pods. More creative attempts to get Keurig to explain these advanced interactive benefits also proved fruitless:After a few days and clearly a few meetings, Keurig released a public statement that attempted to flesh out their non-answer. While still refusing to admit something their own CEO already acknowledged, Keurig decided to push the mystery added benefits angle a little harder, even going so far as to claim that blocking you from getting cheaper competing product is about your safety:

"To make brewing a carafe possible, and to continue to deliver everything Keurig lovers already enjoy – high-quality beverages, simplicity, and variety – our new Keurig 2.0 system will feature specially designed interactive technology allowing the brewer to read information about the inserted Keurig pack. With this interactive capability, Keurig 2.0 brewers will “know” the optimal settings for the inserted Keurig pack, for a perfect beverage every time, whether a single cup or a carafe. It’s critical for performance and safety reasons that our new system includes this technology. For those of you who currently own our K-Cup or Vue systems today, we are so happy to have you as part of our family. Rest assured that your brewers will still function as they always have and that your favorite beverages will still be available."

In other words, we must be able to lock competitors' pods (and manual refill units) out of the market to keep you safe from the dangers of potentially lower costs and dreaded coffee-related injury. It's also impossible for us to embed this obnoxious technology in older units, so those will continue to function as you prefer them to -- without us interfering in your purchase options. Sure, you're losing purchase options and will have to pay more for coffee, but isn't the security of knowing your family is safe from the dangers of coffee-related hazards worth it?

Filed Under: coffee, drm
Companies: keurig

Keurig Will Use DRM In New Coffee Maker To Lock Out Refill Market

from the who-wanted-paying-customers-anyway dept

The single coffee cup craze has been rolling now for several years in both the United States and Canada, with Keurig, Tassimo, and Nespresso all battling it out to lock down the market. In order to protect their dominant market share, Keurig makers Green Mountain Coffee Roasters has been on a bit of an aggressive tear of late. As with computer printers, getting the device in the home is simply a gateway to where the real money is: refills. But Keurig has faced the "problem" in recent years of third-party pod refills that often retail for 5-25% less than what Keurig charges. As people look to cut costs, there has also been a growing market for reusable pods that generally run anywhere from five to fifteen dollars.

Keurig's solution to this problem? In a lawsuit (pdf) filed against Keurig by TreeHouse Foods, they claim Keurig has been busy striking exclusionary agreements with suppliers and distributors to lock competing products out of the market. What's more, TreeHouse points out that Keurig is now developing a new version of their coffee maker that will incorporate the java-bean equivalent of DRM -- so that only Keurig's own coffee pods can be used in it:

"Green Mountain has announced a new anticompetitive plan to maintain its monopoly by redesigning its brewers to lock out competitors’ products. Such lock-out technology cannot be justified based on any purported consumer benefit, and Green Mountain itself has admitted that the lock-out technology is not essential for the new brewers’ function. Like its exclusionary agreements, this lock-out technology is intended to serve anticompetitive and unlawful ends."

The plan was confirmed by Keurig's CEO who stated on a recent earnings call that the new maker indeed won't work with "unlicensed" pods as part of an effort to deliver "game-changing performance." "Keurig 2.0" is expected to launch this fall. French Press and pour-over manufacturers like Chemex have plenty of time to get their thank you notes to Keurig in the mail ahead of time as users are hopefully nudged toward the realization they could be drinking much better coffee anyway.

Filed Under: coffee, drm
Companies: keurig, treehouse foods