Digital BW, The Print

I'll apologize upfront for the cross-posting on this one, but IMHO this 
topic is important enough in multiple fora to be passed  on..


In view of earlier discussions regarding recent EU legislation that 
mandates companies desist from utilizing cartridges and chips to prevent 
the reuse of cartridges (see: 
 <http://news.zdnet.co.uk/story/0,,t269-s2127877,00.html> ) Canon may 
have gained itself three years of profits at a VERY HIGH cost...

http://www.canon.com/press/pelikan2003.html

If you take the new EU law and the Pelikan ruling into consideration, 
you can quickly see a problem for Canon, Lexmark, EPSON, et al..

A problem that may really make it tough for Lexmark et al to hold the 
line on chipped cartridges etc..

See the similar Lexmark suit in the US: (and assume that Static Control 
either settles or Lexmark wins a judgment)
http://news.com.com/2100-1023-979791.html

Canon and Lexmark have defended their proprietary interest in the 
cartridge technologies, but EU law now has a blanket prohibition set to 
go into effect for 2006 against chipped cartridge schemes..

IMHO, this combination could well result in the following legal 
scenarios, a nightmare for OEMs who invest in these technologies to 
stifle attempts to overcome their tying ..

1)     They are treated by EU regulators vís cartridges as are ILECs 
(essentially the Baby Bells). "Ok, you get to keep the patented 
cartridges but now you must sell the empties at  FMV (fair market value) 
to all the other ink manufacturers.."  Canon, Lexmark, EPSON, find 
themselves producing virgin cartridges for the very people they meant to 
stop..

2)    "Sorry, you can't include any patented or protected intellectual 
property in the cartridges, as to do so would axiomatically subvert the 
recycling/anti-chipping law...(unless of course you license that 
property at FMV)" -- talk about a regulatory mess  Again, this benefits 
those opposed to this kind of tying and the 3rd party ink people...  

So, Canon and Lexmark "win the battle" and gain a potential 3 years of 
 additional profit, but these very rulings combined with the new EU law 
could combine to end tying of inkjet cartridges much more effectively 
than had Canon, Lexmark, et al, left well enough alone..  ergo "they 
lose the war"

Accordingly, I won't be losing much sleep over the rulings..

IMHO this shows very little foresight on the part of Canon and Lexmark's 
legal staffs.. In the battle to protect current profits they may be 
really painting themselves into a corner here, not to mention failing to 
represent their client's best interests (instead of acting as counsel 
they look more like accountants worrying about maintaining a profit 
margin for investors). Maybe they use the same people to develop legal 
strategy that the "Bushies" use to chart US international policy vís 
Iraq and the UN?
Keith

 

"Just some guy," and caretaker of the Multiverse's largest EPSON printer 
User Community (highly recommended by Vogon Poets and MegaDodo 
Publications), at:

http://groups.yahoo.com/group/EPSONx7x_Printers/
 
"For the rest of you out there, the secret is to bang the rocks together 
guys"

 

****************************************************************
CONFIDENTIALITY & COPYRIGHT NOTICE:
This e-mail message, including attachments and contents, is © Copyright, 
Keith Krebs, 2001-2002, All Rights Reserved. It is expressly for the 
sole use of the intended recipient and may contain confidential and 
privileged information. Absent the express written authorization of the 
author, any unauthorized review, use, disclosure, transfer, or 
distribution is explicitly prohibited and taken at your own risk. If you 
are not, or are unsure whether you are, the intended recipient, please 
contact the sender immediately and destroy all copies of the original 
message. Violations will be prosecuted to the FULL extent allowed under 
applicable civil and criminal law. Imagery published or distributed in 
violation of these conditions shall be subject to a $1500/image 
liquidated damages charge, in addition to any applicable Copyright 
violation penalties.

POV IMage Service Banner
****************************************************************
{ The P.O.V. Image Service Website is still at http://www.p-o-v-image.com/ }





[Non-text portions of this message have been removed]