''Arizona Cartridge Remanufacturers Association Inc. v. Lexmark International Inc.'', 421 F.3d 981 (
9th Cir. 2005) was a decision by the
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit (in case citations, 9th Cir.) is the U.S. federal court of appeals that has appellate jurisdiction over the U.S. district courts in the following federal judicial districts:
* District o ...
which ruled that an
End User License Agreement
An end-user license agreement or EULA () is a legal contract between a software supplier and a customer or end-user, generally made available to the customer via a retailer acting as an intermediary. A EULA specifies in detail the rights and rest ...
on a physical box can be binding on consumers who signal their acceptance of the license agreement by opening the box.
Background
Over the lifetime of modern computer printers, the cost of the ink cartridges can in typical usage be much more than the printer itself. Consumers have a motivation to refill their own cartridges either themselves or through third parties. Lexmark produced "Prebate" ink cartridges with a purchase contract that states that in exchange for purchasing the ink cartridge at a lower price, the consumer agrees not to tamper with the cartridge, and to return it to Lexmark for refurbishing and repackaging.
Arizona Cartridge Remanufacturers Association Inc. (ACRA), a consumer group, brought suit that alleges it was deceptive for
Lexmark
Lexmark International, Inc. is a privately held American company that manufactures laser printers and imaging products. The company is headquartered in Lexington, Kentucky. Since 2016 it has been jointly owned by a consortium of three multination ...
to claim that its restriction was enforceable.
Lexmark has since renamed the Prebate cartridges to Lexmark Return Program Cartridges.
Ruling
The appeals court upheld the district court's finding that "ACRA ha
not offered evidence that Lexmark's advertisements constitute
deceptive or unfair business practices" and granted summary judgment in favor of Lexmark. The court found that ACRA failed to show that Lexmark's post-sale restriction had no legal basis, and that ACRA's claim that "Lexmark want
dconsumers to believe that the Prebate discount reflect
dthe benefit that accrue
to Lexmark by getting an empty cartridge back" was not supported by the record. In addition, the appeals court affirmed the district court's finding that "Lexmark could restrict the post-sale use of its patented cartridge," finding that "ACRA ha
not attempted to show that the use of the lock-out chip
..impermissibly exceed
dthe patent grant to produce anticompetitive effects."
Conclusion
It is sometimes overlooked that this ruling only applies to Lexmark's "Prebate" ink cartridges, where the contract states that in exchange for purchasing the ink cartridge at a lower price, the consumer agrees to not tamper with the cartridge and return it to Lexmark for refurbishing and repackaging. The
Electronic Frontier Foundation
The Electronic Frontier Foundation (EFF) is an international non-profit digital rights group based in San Francisco, California. The foundation was formed on 10 July 1990 by John Gilmore, John Perry Barlow and Mitch Kapor to promote Internet civ ...
has concerns that this decision will allow patent owners to "impose over-reaching restrictions on formerly permitted post-sale uses".
See also
* ''
Bauer & Cie. v. O'Donnell''
*
Defective by Design
Defective by Design (DBD) is an anti- DRM initiative by the Free Software Foundation. Digital rights management (DRM) technology restricts users' ability to freely use their purchased movies, music, literature, software, and hardware in ways th ...
*
Walled garden (technology)
A closed platform, walled garden, or closed ecosystem is a software system wherein the carrier or service provider has control over applications, content, and/or media, and restricts convenient access to non-approved applicants or content. This ...
*
Digger gold An urban mine is the stockpile of rare metals in the discarded waste electrical and electronic equipment (WEEE) of a society. Urban mining is the process of recovering these rare metals through mechanical and chemical treatments.
The name was coin ...
*
Retrocomputing
Retrocomputing is the use of older computer hardware and software in modern times. Retrocomputing is usually classed as a hobby and recreation rather than a practical application of technology; enthusiasts often collect rare and valuable hardw ...
References
External links
*
{{DEFAULTSORT:Arizona Cartridge Remanufacturers Association Inc. V. Lexmark International Inc.
United States contract case law
United States patent case law
United States Court of Appeals for the Ninth Circuit cases
2005 in United States case law
Lexmark