Don
Buzzkill
Joined: 15 Nov 2011
Posts: 399
Location: inches from crossing the line
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 Posted: Sat Jan 21, 2012 5:39 pm Post subject: |
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Lexmark Sues Over Toner Cartridges
Lexmark, the second-largest laser printer maker in the U.S., has long tried to eliminate the secondary market in refilled laser toner cartridges. In January 2003, Lexmark employed the DMCA as a new weapon in its arsenal.
Lexmark had added authentication routines between its printers and cartridges explicitly to hinder aftermarket toner vendors. Static Control Components (SCC) reverse-engineered these measures and sold "Smartek" chips that enabled refilled cartridges to work in Lexmark printers. Lexmark then used the DMCA to obtain an injunction banning SCC from selling its chips to cartridge remanufacturers.
SCC ultimately succeeded in getting the injunction overturned on appeal, but only after 19 months of expensive litigation while its product was held off the market. The litigation sent a chilling message to those in the secondary market for Lexmark cartridges.
Chamberlain Sues Universal Garage Door Opener Manufacturer
Garage door opener manufacturer Chamberlain Group invoked the DMCA against competitor Skylink Technologies after several major U.S. retailers dropped Chamberlain's remote openers in favor of the less expensive Skylink universal "clickers." Chamberlain claimed that Skylink had violated the DMCA because its clicker bypassed an "authentication regime" between the Chamberlain remote opener and the mounted garage door receiver unit. On Chamberlain's logic, consumers would be locked into a sole source not only for replacement garage door clickers, but virtually any remote control device.
Skylink ultimately defeated Chamberlain both at the district court and court of appeals, but only after many months of expensive litigation. In the words of the court of appeals, Chamberlain use of the DMCA was nothing less than an "attempt to leverage its sales into aftermarket monopolies."
Apple Harasses Inventive Retailer
When Other World Computing (OWC), a small retailer specializing in Apple Macintosh computers, developed a software patch in 2002 that allowed all Mac owners to use Apple's iDVD software, they thought they were doing Macintosh fans a favor. For their trouble, they got a DMCA threat from Apple.
Apple's iDVD authoring software was designed to work on newer Macs that shipped with internal DVD recorders manufactured by Apple. OWC discovered that a minor software modification would allow iDVD to work with external DVD recorders, giving owners of older Macs an upgrade path. Apple claimed that this constituted a violation of the DMCA and requested that OWC stop this practice immediately. OWC obliged.
Rather than prevent copyright infringement, the DMCA empowered Apple to force consumers to buy new Mac computers instead of simply upgrading their older machines with an external DVD recorder.
StorageTek Attempts to Block Independent Service Vendors
StorageTek sells data storage hardware to large enterprise clients. It also sells maintenance services for its products. Custom Hardware is an independent business that repairs StorageTek hardware. In an effort to eliminate this competitor in the maintenance services market, StorageTek sued under the DMCA, arguing that Custom Hardware had circumvented certain passwords designed to block independent service providers from using maintenance software included in the StorageTek hardware systems. In other words, StorageTek was using the DMCA to ensure that its customers had only one place to turn for repair services.
A district court granted a preliminary injunction against Custom Hardware. More than a year later, a court of appeals vacated the injunction, holding that where there is no nexus with copyright infringement, there can be no DMCA claim. Although this was a victory for competition, it illustrates the ways in which the DMCA continues to be used to impede competition, rather than prevent piracy.
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