Good evening. Thanks for using JustAnswer. I'm XXXXX XXXXX, aka "DrKlahn."
There are two stages to dealing with this problem. First, the ink pads must be replaced. Second, the Epson reset utility must be used to reset the printer's internal "clock" on the ink pads.
The procedure for replacing the ink pads is detailed at this link: http://freedomtoprint.com/2010/02/10/answers-artisan-700-problems-what-is-a-waste-ink-pad/. It's an excellent description and the pictures detail the procedure exactly. The catch is that nobody seems to sell replacement pads. Normally I'd expect this type of item to be available on ebay, but it is not. I don't know if anything else can be substituted for the original pads. Most owners seem to replace the printer instead.
The Epson reset utility can be used to extend the printer's life a bit until the ink pads start truly overflowing. This is rather a race between the printer wearing out, and the eventually-overflowing ink pads dribbling over whatever the printer is sitting on. The inkpad reset utility is available from Epson at the following link: http://www.epson.com/cgi-bin/Store/support/InkPadsForm.jsp
If anything in this answer is unclear, or you'd like something explained further, don't hesitate to ask. I have flagged this as an Answer, but do not Accept it until it is clear that the problem has been located and the answer is satisfactory. Further discussion is always possible, even after an Answer has been accepted.