Arizona Cartridge Remanufacturers Ass'n Inc. v. Lexmark International Inc.

2005)[2] was a decision by the United States Court of Appeals for the Ninth Circuit which ruled that an End User License Agreement on a physical box can be binding on consumers who signal their acceptance of the license agreement by opening the box.

Arizona Cartridge Remanufacturers Association Inc. (ACRA), a consumer group, brought suit that alleges it was deceptive for Lexmark to claim that its restriction was enforceable.

[3] The appeals court upheld the district court's finding that "ACRA ha[d] not offered evidence that Lexmark's advertisements constitute[d] deceptive or unfair business practices" and granted summary judgment in favor of Lexmark.

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[d] not attempted to show that the use of the lock-out chip [...] impermissibly exceed[ed] the patent grant to produce anticompetitive effects.

The Electronic Frontier Foundation has concerns that this decision will allow patent owners to "impose over-reaching restrictions on formerly permitted post-sale uses".