Epson has been battling with third-party ink cartridge and continuous-ink system manufacturers for a while. Several companies have decided to settle:
http://arstechnica.com/news.ars/post/20061129-8323.html
Epson derives much of its revenue from selling ink cartridges, and if it can limit or eliminate competition it will have a monopoly on its inks. This will very likely mean increased ink prices as there's a definite lock-in from customers who already own Epson printers and are stuck with using their inks as competition goes or is required to pay royalties to Epson.
Lexmark tried the same trick but Epson is successful as it relies on patent protection.
Yet another reason for me to stick with Canons.
