There's a price to this magic. The io2 can only record your writing when you write on "Digital Paper." That's because the paper has a background printing of tiny dots, and the pen records its location on the paper using the dots as landmarks. The paper comes in a variety of formats including spiral pads, covered notebooks, Post-It notepads and a few others. The price for the paper is a little higher than normal pads. For example, the Logitech Digital Notepad 3-pack (128 pages each) goes for $12 online.

Logitech is marketing the system to specialized applications like law enforcement and medical fields, which make heavy use forms. Check mark recognition is near 100% accurate and the specialized vocabulary used in these fields can increase accuracy.

The io2 Digital Writing System sells for $200 and is definitely a cool way to get your paper notes converted to text. The MyScript Notes software does a great job of recognizing your handwriting. It's a great way to capture your next business plan, although you won't be able to use the back of a paper napkin.