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== Business model == [[File:Ink-jet cartridges.jpg|thumb|Ink cartridges]] [[File:Inkjet Cartridge Microchips.jpg|thumb|Microchips from Epson ink cartridges. These are tiny [[printed circuit boards]]; a deposit of black [[epoxy]] [[Potting (electronics)|covers the chip]] itself.]] A common business model for inkjet printers involves selling the actual printer at or below production cost, while dramatically marking up the price of the (proprietary) ink cartridges (a profit model called the "[[razor and blades model]]"). Most current inkjet printers attempt to enforce this [[product tying]] by [[anticompetitive]] measures such as [[Integrated circuit|microchips]] in the cartridges to hinder the use of third-party or refilled ink cartridges. The microchips monitor usage and report the ink remaining to the printer. Some manufacturers also impose "expiration dates". When the chip reports that the cartridge is empty (or out of date) the printer stops printing. Even if the cartridge is refilled, the microchip will indicate to the printer that the cartridge is depleted. For many models (especially from Canon), the 'empty' status can be overridden by entering a 'service code' (or sometimes simply by pressing the 'start' button again). For some printers, special circuit "flashers" are available that reset the quantity of remaining ink to the maximum.<ref>{{Cite news |last=Grundy |first=Jeff |title=How to Override Printer Ink Levels |url=https://smallbusiness.chron.com/override-printer-ink-levels-64698.html |archive-url=http://web.archive.org/web/20250127103212/https://smallbusiness.chron.com/override-printer-ink-levels-64698.html |archive-date=2025-01-27 |access-date=2025-05-06 |work=Chron - Small Business |language=en}}</ref><ref>{{cite web|url=http://www.hardwaresecrets.com/article/How-to-Refill-Epson-Cartridges/60 |title=Refilling Epson Cartridges 1 |archive-url=https://web.archive.org/web/20141016104451/http://www.hardwaresecrets.com/article/How-to-Refill-Epson-Cartridges/60 |archive-date=16 October 2014 }}</ref> Some manufacturers, most notably [[Epson]] and [[Hewlett-Packard]], have been accused of indicating that a cartridge is depleted while a substantial amount of ink remains.<ref name="Auto5I-11" /><ref name="Auto5I-12" /> A 2007 study found that most printers waste a significant quantity of ink when they declare a cartridge to be empty. Single-ink cartridges were found to have on average 20% of their ink remaining, though actual figures range from 9% to 64% of the cartridge's total ink capacity, depending on the brand and model of printer.<ref name="Auto5I-13" /> This problem is further compounded with the use of one-piece multi-ink cartridges, which are declared empty as soon as one color runs low. Of great annoyance to many users are those printers that will refuse to print documents requiring only black ink, just because one or more of the color ink cartridges is depleted. In recent years, many consumers have begun to challenge the business practices of printer manufacturers, such as charging up to US$8,000 per gallon (US$2,100 per liter) for printer ink. Alternatives for consumers are cheaper copies of cartridges, produced by third parties, and the refilling of cartridges, using refill kits. Due to the large differences in price caused by OEM markups, there are many companies selling third-party ink cartridges. Most printer manufacturers discourage refilling disposable cartridges or using aftermarket copy cartridges, and say that use of incorrect inks may cause poor image quality due to differences in viscosity, which can affect the amount of ink ejected in a drop, and color consistency, and can damage the printhead. Nonetheless, the use of alternative cartridges and inks has been gaining in popularity, threatening the business model of printer manufacturers. Printer companies such as [[Hewlett-Packard|HP]], [[Lexmark]], and [[Epson]] have used patents and the [[Digital Millennium Copyright Act|DMCA]] to launch lawsuits against third-party vendors.<ref name="Auto5I-16" /><ref name="Auto5I-17" /> An [[anti-trust]] class-action lawsuit was launched in the US against HP and office supply chain [[Staples Inc.|Staples]], alleging that HP paid Staples $100 million to keep inexpensive third-party ink cartridges off the shelves.<ref name="Auto5I-18" /> In [[Lexmark Int'l v. Static Control Components]], the [[United States Court of Appeals for the Sixth Circuit]] ruled that circumvention of this technique does not violate the [[Digital Millennium Copyright Act]].<ref>{{cite web|url=https://www.eff.org/legal/cases/Lexmark_v_Static_Control/20030303-finding-of-facts.pdf|title=Lexmark International, Inc. v. Static Control Components, Inc.: Findings of Fact and Conclusions of Law|author=Karl S. Forester|publisher=United States District Court for the Eastern District of Kentucky|date=27 February 2003|access-date=8 August 2006|archive-url=https://web.archive.org/web/20060630121425/http://www.eff.org/legal/cases/Lexmark_v_Static_Control/20030303-finding-of-facts.pdf|archive-date=30 June 2006|url-status=dead}}</ref> The [[European Commission]] also ruled this practice anticompetitive: it will disappear in newer models sold in the European Union.<!-- What about Japan, etc? --><ref name="Auto5I-20" /> Patents protecting the structure of their cartridges prevent the sale of cheaper copies of the cartridges. For some printer models (notably those from Canon), the manufacturer's own microchip can be removed and fitted to a compatible cartridge thereby avoiding the need to replicate the microchip (and risk prosecution). Other manufacturers embed their microchips deep within the cartridge in an effort to prevent this approach. In 2007, [[Eastman Kodak]] entered the inkjet market with its own line of All-In-One printers based on a marketing model that differed from the prevailing practice of selling the printer at a loss while making large profits on replacement ink cartridges. Kodak claimed that consumers could save up to 50 percent on printing by using its lower-cost cartridges filled with the company's proprietary pigmented colorants while avoiding the potential problems associated with off-brand inks.<ref name="Auto5I-21" /> This strategy proved unsuccessful, and Kodak exited the consumer inkjet printer business in 2012. A more recent development is the [[supertank printer]], which uses an integrated [[continuous ink system]]. Supertank printers are defined by their large, permanently installed ink tanks which are filled from ink bottles. The printer itself is typically sold at a substantial premium, but ink bottles are inexpensive and contain enough ink to print thousands of pages. Supertank printers generally ship with full bottles of ink in the box, allowing up to two years of printing before the tanks needs to be refilled. Epson pioneered this technology by launching the EcoTank range, first in Indonesia in 2010,<ref name="Epson-pressrelease-EcoTankSuccess2016" /> with a North American launch in 2015.<ref name="EpsonAmerica-pressrelease-EcoTankLaunch2015">{{cite web |publisher=[[Epson America|Epson]] |title=Epson Transforms Printer Category with EcoTank β Loaded and Ready to Print for Up to Two Years Without an Ink Refill |url=https://news.epson.com/news/epson-transforms-printer-category-with-ecotank-loaded-and-ready-to-print-for-up-to-two-years-without-an-ink-refill |date=4 August 2015 |access-date=25 June 2021}}</ref> The supertank concept proved commercially successful,<ref name="Epson-pressrelease-EcoTankSuccess2016">{{cite web |publisher=[[Epson]] |title=Epson High-Capacity Ink Tank Printers Achieve Cumulative Global Sales of 15 Million Units |url=https://global.epson.com/newsroom/2016/news_20160706.html |date=6 July 2016 |access-date=25 June 2021}}</ref> and Canon and HP launched their own lines of supertank printers, under the names MegaTank (Canon)<ref name="CanonUSA-pressrelease-PIXMAG7020">{{cite web |publisher=[[Canon Inc.|Canon U.S.A.]] |title=Experience Mega Value with New Canon PIXMA G-Series MegaTank Printer |url=https://www.usa.canon.com/internet/portal/us/home/about/newsroom/press-releases/press-release-details/2019/20191203-printer/20191203-printer |access-date=25 June 2021 |date=3 December 2019}}</ref> and Smart Tank (HP). === Region-coding of printers and ink cartridges === Many manufacturers give their printers and cartridges [[Regional lockout|region codes]], comparable to [[DVD region code|those of DVDs]], so customers cannot import them from a cheaper region. The region code can be changed a few times by the customer or the customer-service department of the manufacturer, but then, the printer is region-locked like a RPC-2 DVD drive. One method to bypass printer-region-coding is to store empty cartridges from the old region and refill them with ink from the new region, but, as mentioned above, many modern ink cartridges have chips and sensors to prevent refilling, which makes the process more difficult. On the Internet, there are refill instructions for different printer models available. Another method is to have ink cartridges from the old region shipped to the new region. Some manufacturers of region-coded printers also offer region-free printers specially designed for travelers.
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