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from the think-of-the-poor-rent-seeking-monopolists dept.
Score one for the little guys. In a precedent-setting decision handed down this morning, the U.S. Supreme Court ruled that a company's patent rights are forfeited once they sell an item to a consumer under the "first sale" doctrine. This idea was central to Impression Products, Inc. v Lexmark Int'l, Inc. and is a major blow to companies that sell their printers for (relatively) low prices and then recoup any losses on the sale of expensive ink and toner cartridges. [...]
"Extending the patent rights beyond the first sale would clog the channels of commerce, with little benefit from the extra control that the patentees retain," wrote Chief Justice John Roberts. In his opinion, Chief Justice Roberts contended that Lexmark's heavy-handed approach to discouraging cartridge remanufacturers only emboldened them to find new and innovative ways to circumvent the company's defenses.
A patent holder that restricts the reuse or resale of its printer ink cartridges can't invoke patent law against a remanufacturing company that violates the restriction, the U.S. Supreme Court ruled on Tuesday.
The court ruled that Lexmark International's patent rights are exhausted with its first sale of the cartridges, despite restrictions it tried to impose.
Chief Justice John G. Roberts Jr. wrote the opinion (PDF), joined in full by six justices. Justice Neil M. Gorsuch didn't participate in the case.
Additional coverage by Consumerist.
Doesn't the Supreme Court care how many lawyers this will put out of work? Think of the Lawyers! And the effect on commerce for those selling ink at $8,000 a gallon.
(Score: 2) by Runaway1956 on Tuesday May 30 2017, @10:23PM (2 children)
"The $200 printers never went away,"
You're both right, and wrong. For you, who knows about printers, there were always options. But, you'll admit that printers, the sales, service, and maintenance of printers, have gotten just a bit complicated. The average consumer goes into Walmart, in need of a printer. Walmart doesn't have a lot of options, and most of those options are the dirt cheap options. So, Sally Q. Consumer compares the features of what is available, and opts for Brand X, which costs her about 50 bucks. She uses up all the ink supplied with the thing, goes back to Walmart, and finds that the ink costs 75 or 100 bucks. If Sally is lucky, she complains to the right person, who informs her that she can get a much better quality printer for 200, and refill it every year for about 20 dollars. If Sally is less lucky, she either pays for the overpriced ink, or she just throws away the printer, and buys a new one with it's supply of ink.
I'm about halfway between you and Sally. I really don't understand WHAT makes one printer better quality than another. But, I do know who to ask.
(Score: 2) by AthanasiusKircher on Wednesday May 31 2017, @03:48AM (1 child)
The average consumer is an idiot. But let's go with your scenario for a second.
And Sally rightly feels it is ridiculous that a bottle of ink costs $75. So, if Sally has just a tiny bit of sense, she might do a quick internet search for printer reviews, and realize that this cartridge thing is a scam for most printers. And then when she shops for her next printer, she can just look up a price for a cartridge online BEFORE she buys a printer.
I don't think it requires much specialized knowledge about printers to figure this out. Granted, many consumers get fooled by this the first time they buy a printer.
Also, Walmart doesn't just offer a line of rip-off cheap inkjet printers. A quick search shows me they offer a lot of laser [walmart.com] models, for example (many not that pricey), and if you happen to click on one, it likely will show you the toner cartridge and price among its suggested items list.
So yeah, if Sally is 70 years old and doesn't understand how to do an internet search or read reviews online, I can understand how she might not be able to figure out that it's possible to buy a printer with a cheaper refill. Do such people exist? Yes. But it's not as hard as a chance encounter with "complaining to the right person" anymore.
(Score: 2) by mhajicek on Wednesday May 31 2017, @05:41AM
Or get the cheap printer on clearance for $20 or $30 with ink in it every time it runs dry. Comes with a free scanner too.
The spacelike surfaces of time foliations can have a cusp at the surface of discontinuity. - P. Hajicek