DRM goes analog

September 7th, 2005 by arthur chu

So this is perhaps old news for people who keep up with Slashdot, but the U.S. Ninth Circuit Court of Appeals recently ruled in favor of Lexmark in ACRA v. Lexmark.

The case was about whether Lexmark could offer a “prebate” on some of its ink cartridges with the stipulation that ink cartridges bought under this prebate (that is, a discounted price) would carry a contractual obligation on the part of the customer to mail back the empty cartridges to Lexmark — and not reuse them by using an ink-syringe kit to refill them or sending them to a company that refills cartridges for you (such companies being the ones represented by ACRA, a trade association for such things).

There’s no actual contract, of course. The reason companies don’t make you do this random crap most of the time is because, before, it would require railroading you into signing something, which most customers won’t do.

But now apparently by generalizing from the way shrinkwrap licenses or “Click to Accept” EULAs on software work, hardware is falling under similar rules. The Court has ruled that if a box reads “Single Use Only”, then buying the product and opening the box constitutes a contract of sale that says you will only use the product once and not find some third-party way to reuse it.

My God. Think about that a little.

Ink cartridges are already one of the most hideously disgusting rackets in the world. Now they can actually force me by legal means to adopt their vile business model of wastefully tossing out old cartridges and buying new ones at exorbitant prices. Right now there’s no force involved because the cartridges are being introduced under the “prebate” scheme, but if this works — what incentive would they have to sell legally refillable cartridges at a higher price at all, when the profit margin of the damn things is so high, and customers are already leery of stepping outside the bounds of what the company tells them they’re “supposed” to do with the product?

Imagine cars that can’t be detailed or souped up or modified unless you buy parts specifically manufactured for the purpose by that car company, and that can’t be fueled except with that car company’s gasoline. Dell computers that won’t let you plug in peripherals that weren’t also licensed or manufactured by Dell. Lamps that will only take GE lightbulbs. And so on.

Now, sure, I sound like an alarmist. These companies have no cameras in your house — right now if you can syringe ink into the cartridge yourself, there’s not a damn thing in the world they can do to stop you.

But consumers are easily stymied by inconvenience and ignorance. They can’t stop an individual from refilling his cartridge but they can sure as hell legally sue the companies that make refilling kits or provide refilling services out of business, once all cartridges get the “Single Use Only” shrinkwrap license on their packages and refilling services become by definition illegal. (Thanks to the Grokster ruling, it’s now become easier to do this crap than ever — you don’t have to prove any instance of wrongdoing, just that a service’s availability could easily encourage wrongdoing. The burden of proof would be on the refilling company to prove they only refilled cartridges purchased before 2007 or whatnot, and they probably couldn’t.) Car companies can do the same to push out third-party parts dealers; Dell and Gateway can kill off the sellers of cheap keyboards, mice and CRTs; and so on. This ruling is a deadly combination with Grokster — it takes Grokster and extends it beyond the digital world to plain, ordinary objects we use every day.

I mean, come on — we’re not talking about electronically stored data here anymore, not about information, not about complex technology. We’re talking about your right to buy a container filled with fluid, use up the fluid and fill it up again with fluid. What’s next, Evian refusing to allow you to fill their containers with non-Evian water? When you can’t own something as mundane as an ink cartridge — when a simple physical object that fulfills a simple physical function is licensed rather than being sold the old-fashioned way, when companies absolutely refuse to allow us to have the right of resale and reuse and creative retooling that we’re used to with actual physical objects that we actually physically buy and take home to our houses to use

Well, damn. This fight’s just gotten a lot bigger than cyberspace. This is now a meatspace fight. This fight is now about the right to own anything.

How ironic, that the people who claim that DRM and the licensing principles that stand behind DRM are the fundamental guardian of property rights, when in fact this is the force that is rapidly destroying property rights as we once knew them and stands ready to turn the consumers of at least expensive electronic goods from owners into renters and squatters.

4 Responses to “DRM goes analog”

  1. Joey Says:

    True, were it not for the simple fact that in most cases it’s bad business sense to limit usage in that way, because unless the printermakes or automaters or computermakes collude with each other to force these schemes on consumers (and act which would violate anti-trust law in any case), competition would drive consumers away from those companies that restrict your use of their probucts in such a way. Only Lexmark is engaging in this scheme, am I correct? Well, if they expant it beyond the “prebate” as you suggest….good for HP and Canon and Epson and whoever else wants to design a printer.

    You can’t forget the simple fact that competition tends to prevent these things from happening. Hassling your customers is only an effective business staregy when they don’t have other options. In this case, they do: not use Lexmark’s printers.

    Now, if you think that ALL the other printer compnties will adopt this along with them, each on their own, then you may have a case…but, while less ulnlikely than an eqivalent in other industries, that

    Oh, and aren’t there also 3rd-party cartridige manufacturers who make thier own compatible cartridges that sell for less than the others? I think they’d benefit from leaving these restrictions off their products as well.

  2. Martey Says:

    I do not know whether competition will protect the consumer in this case. Companies that make printers are forced to make money by selling ink cartridges because most people do not think of the total cost of ownership of their inkjet printers. If your competitor is selling printers at a lower price than you, more people will buy the competitors’ cheap printers and expensive cartridges, causing you to lose money. And if one of your competitors prohibits the users of their printers to reuse ink cartridges, it is more likely that current printer owners will simply buy more cartridges from the competitors, rather than switching to your higher-priced printer with open cartridge technology. Meanwhile, your customers are refilling their cartridges at home, which means that even those you are making a reasonable profit on the few printers you sell, you are gaining nothing from selling ink cartridges.

    As for third-party cartridges, forget about it. Lexmark includes a microchip in its laser jet cartridges that communicates with the printer and monitors ink levels. Cartridges without this microchip will simply not work in Lexmark laser printers. It would be relatively simple to extend this behavior to inkjet printers. I believe the reason that it has not happened yet is the relative scarcity of reliable third-party cartridges.

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