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The Exhaustion of Our Rights | 77 comments (77 topical) | Post A Comment
Yes, but...[ Reply to This ] (none / 0) (#1)
by dliesse on Thu Oct 09, 2003 at 10:22:58 AM PDT

When I read this article closely, I have to conclude that the judge is correct in this particular situation. The ruling has some loopholes that I expect we'll see end up for further trial someday. Specifically:

1. Yes, most laser printers are probably owned by businesses, but this does not imply that most sales are business-to-business in the direct sense. The vast majority of small businesses buy their computer consumables the same way you and I do, either at the local computer store or from an online retailer at the posted price.

2. The non-business use of laser printers is probably greater than the judge believes, thus creating a second category of normal retail transactions.

This said, the concept of "negotiated sale" may be negated. Is the non-Prebate version of the cartridge available at all? If not, then there are no negotiations. "Take it or leave it" does not constitute a negotiated sale, the way I see it. And you can't say the consumer made the choice by buying a Lexmark printer to begin with, if these terms were not available for review at the time of that purchase (realistically, how often do you buy a new printer and a toner cartridge at the same time, given that one is usually included with the printer?).

I'm willing to bet this one ends up at the Appeals Court. It'll be interesting to see how that turns out.

As a disclaimer, I'll point out that I am not an attorney, and am just expressing my own opinions; no one should take what I said as point of legal fact!

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Non-Prebate Cartridges[ Parent | Reply to This ] (none / 0) (#4)
by Ed Foster on Fri Oct 10, 2003 at 12:03:41 PM PDT

My understanding from earlier research on the Prebate program was that Non-Prebate cartridges were available from Lexmark, but you would usually have to order them special. After all, retailers don't usually like taking up shelf space with an item that no one in their right mind is going to buy. Spending $30 extra for a cartridge you give to a re-manufacturer doesn't make a lot of sense.

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Negotiation not required[ Parent | Reply to This ] (none / 0) (#13)
by Anonymous User on Thu Oct 16, 2003 at 08:33:52 AM PDT

I'm not a patent lawyer either but: If Non-Pre cartridges have to be special ordered without prominent notice on the printer package then there is an attempt at restraint of trade. If Non-Pre cartridges are readily available at the store and Pre cartridge conditions are clearly marked on those then there is no violation. Disclosure and availability are the keys here. ACRA should send out their researches fast and find out if Lexmark ever put those Non-Pre cartridges on the shelves of retailers. If not then they have a ready-made means to overturn the ruling -- Nondisclosure prior to sale of the printer of special conditions to maintain the printer! And btw, those Non-Pre cartridges had better be new manufactured and not remanufactured Prebates.

[ Parent | Reply to This ]


take it or leave it[ Parent | Reply to This ] (none / 0) (#15)
by Anonymous User on Fri Oct 24, 2003 at 06:37:18 AM PDT

Actually, this could be a binding contract, even though it intuitively seems like it wasn't 'negotiated.' In contract law, these are called "contracts of adhesion," and they're analyzed under the doctrine of unconscionability. If the terms of the deal are so one-sided as to "shock the conscience" (in the favorite phrase of the case law) or if the manner of making the deal was similarly one-sided, then a court may very well invalidate the deal as unconscionable. In this case, I don't think a court would overturn this decision on those grounds - however, this decision wasn't about that, it was about deceptive advertising, etc, rather than contract formation. Courts aren't supposed to decide issues not brought to them. I'm not a lawyer, but I am a second-year law student. You all probably know a lot more than I do about copyright/trademark/patent!

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