Normally I’d be more up in arms about something like this — as far as I’m concerned, once I purchase a device I should be able to do whatever I want with it — but this is really more of a virtual recall than hardware DRM. It seems that Panasonic, worried that third-party batteries might prove troublesome in their cameras (wouldn’t be the first time), has created a battery authentication process to make sure your power source is approved. Nice of you to do so, Panasonic, but don’t you think a warning dialog would have accomplished the same thing?
Let’s be honest, your main concern is liability. If the camera detects a “non-genuine” battery, just have it say “Your battery is not tested to the same standards as our own! Use it at your own risk! For more information…” and so on. You could even do a trade-in discount if you’re so concerned.
Anyway, needless to say, if you have a Panny camera, are using a 3rd-party battery pack, and wish to continue doing so, do not click on and download any of the firmware updates located at the link above.