The article isn’t quite clear but i’m guessing the RFID chip is embedded in the spool of the label roll.
Dymo’s latest generation of desktop label printers use RFID chips to authenticate the labels that Dymo’s customers put in their printers.
“There’s a good reason for that: U.S. Copyright law gives Dymo a powerful tool to intimidate commercial rivals who help us escape from label-jail. Section 1201 of the Digital Millennium Copyright Act exposes those rivals to $500,000 in fines and a five-year prison sentence for trafficking in tools that bypass an “access control” for a copyrighted work, like the firmware on a Dymo printer.”