Can cryptography prevent printer-ink piracy?
Most of these cartridges are made by printer manufacturers and sell for a substantial premium. Some come from unauthorized sources, sell for substantially less and attract the attention of antipiracy lawyers.
Cryptography Research Inc. (CRI), a San Francisco company, is developing chip technology aimed at helping printer manufacturers protect this primary source of profit. The company's chips use cryptography designed to make it harder for printers to use off-brand and counterfeit cartridges.
Skillful hackers can eventually crack almost any code thrown at them and then exploit it for commercial purposes. Once antipiracy encryption is hacked on a product such as high-definition DVDs, for example, it's cracked forever and the discs can be copied and played using the hack.
In terms of making and selling hardware, printers themselves are one of the least profitable sectors. Often the manufacturers are willing to sell their printers at a loss with the goal of making money on sales of ink.