In Defense of Library Lending

From Publishers Weekly:

The Hachette v. Internet Archive case has been in the press lately following the parties’ filing of summary judgment motions. But the case is not about the end of copyright as we know it, as Copyright Alliance CEO Keith Kupferschmid implied in his July 18 PW Soapbox, “Standing Up for Copyright.” Nor is it a “torpedo” aimed at the Copyright Act, as AAP CEO Maria Pallante said in a recent PW q&a. Rather, the case concerns the special role of libraries to provide open, nondiscriminatory access to books.

At issue in the publishers’ lawsuit is a practice called controlled digital lending, the principles of which my colleague Dave Hansen and I codified in a 2018 white paper. Under CDL, libraries (including the Internet Archive) make scans of their legally acquired physical books and loan the scans in lieu of the print under rules that mimic physical lending: only one person can borrow a scan at a time; the scans are DRM-protected; and only one format can circulate at a time to maintain a one-to-one “owned-to-loan” ratio. In other words, if the scan is checked out, its print counterpart cannot circulate, and vice versa.

As librarians see it, CDL is a traditional checkout function adapted for the needs of the modern library user. Under the Copyright Act, libraries have always been free to lend the books they have legally acquired without permission or having to pay additional fees. So why are these major publishers suing over CDL?

Because some publishers want to force libraries into a world in which digital books can’t be owned and can only be licensed (through services like OverDrive, for example), usually at significantly higher prices and under restrictive terms. Central to their lawsuit, the publishers argue that a library loan via CDL represents a lost license fee. And while I understand why these large corporate publishers would like to force libraries into an expensive, limited, non-negotiated, and highly profitable licensed access market for e-books, libraries should not have to buy (and rebuy) expensive, time-limited licenses to provide digital access to the physical books they have already purchased.

In her PW q&a, Pallante claimed that CDL will “irrevocably weaken the ability of authors to license their works.” In fact, a scan of a legally acquired print library book loaned under CDL does not negatively impact the market for publishers or authors. To the extent that a library loan has any impact on the marketplace, a digital loan under CDL is no different than the loan of the print book. Look at it this way: no one disputes that a library can mail a print book it owns to a patron. With CDL, libraries can now deliver access to their physical books using a more efficient means: the internet. And if a book’s digital checkout under CDL is controlled to function just like the physical checkout, what difference does it make whether a patron borrows the library’s physical book or the library’s scan of that book?

Pallante suggests such efficiency is a bad thing, citing the publishers’ long expressed desire for “friction” in digital library lending. But having legally purchased their physical books, the IA and its partner libraries are entitled under copyright law to lend them. Nothing in the Copyright Act requires there be any amount of friction in the lending process. Copyright law does not protect friction.

It is time for the major publishers to stop treating each library loan as a lost consumer sale. In his Soapbox, Kupferschmid complained that the IA has “amassed a collection without paying the rights holders a cent.” In fact, the books were paid for. These are the books that sit on our libraries’ shelves or in our off-site repositories. They were all purchased by a library or otherwise legally acquired, and the authors were all paid in accordance with their publishing contracts. Furthermore, this is what libraries do: amass and preserve collections that serve an important, fundamental purpose in society long recognized and valued by the public, courts, Congress, as well as by publishers and authors.

Despite the hyperbolic rhetoric surrounding this case, CDL is not some form of library-sanctioned piracy. CDL is based in copyright law to respect rights holders while broadening access to the books that library systems spend billions of dollars to collect and maintain for the public—including long-neglected, out-of-print books with enormous social and scholarly value and books for which commercial e-book licenses are not available.

Link to the rest at Publishers Weekly

In Defense of Library Lending

From Publishers Weekly:

The Hachette v. Internet Archive case has been in the press lately following the parties’ filing of summary judgment motions. But the case is not about the end of copyright as we know it, as Copyright Alliance CEO Keith Kupferschmid implied in his July 18 PW Soapbox, “Standing Up for Copyright.” Nor is it a “torpedo” aimed at the Copyright Act, as AAP CEO Maria Pallante said in a recent PW q&a. Rather, the case concerns the special role of libraries to provide open, nondiscriminatory access to books.

At issue in the publishers’ lawsuit is a practice called controlled digital lending, the principles of which my colleague Dave Hansen and I codified in a 2018 white paper. Under CDL, libraries (including the Internet Archive) make scans of their legally acquired physical books and loan the scans in lieu of the print under rules that mimic physical lending: only one person can borrow a scan at a time; the scans are DRM-protected; and only one format can circulate at a time to maintain a one-to-one “owned-to-loan” ratio. In other words, if the scan is checked out, its print counterpart cannot circulate, and vice versa.

As librarians see it, CDL is a traditional checkout function adapted for the needs of the modern library user. Under the Copyright Act, libraries have always been free to lend the books they have legally acquired without permission or having to pay additional fees. So why are these major publishers suing over CDL?

Because some publishers want to force libraries into a world in which digital books can’t be owned and can only be licensed (through services like OverDrive, for example), usually at significantly higher prices and under restrictive terms. Central to their lawsuit, the publishers argue that a library loan via CDL represents a lost license fee. And while I understand why these large corporate publishers would like to force libraries into an expensive, limited, non-negotiated, and highly profitable licensed access market for e-books, libraries should not have to buy (and rebuy) expensive, time-limited licenses to provide digital access to the physical books they have already purchased.

In her PW q&a, Pallante claimed that CDL will “irrevocably weaken the ability of authors to license their works.” In fact, a scan of a legally acquired print library book loaned under CDL does not negatively impact the market for publishers or authors. To the extent that a library loan has any impact on the marketplace, a digital loan under CDL is no different than the loan of the print book. Look at it this way: no one disputes that a library can mail a print book it owns to a patron. With CDL, libraries can now deliver access to their physical books using a more efficient means: the internet. And if a book’s digital checkout under CDL is controlled to function just like the physical checkout, what difference does it make whether a patron borrows the library’s physical book or the library’s scan of that book?

Pallante suggests such efficiency is a bad thing, citing the publishers’ long expressed desire for “friction” in digital library lending. But having legally purchased their physical books, the IA and its partner libraries are entitled under copyright law to lend them. Nothing in the Copyright Act requires there be any amount of friction in the lending process. Copyright law does not protect friction.

It is time for the major publishers to stop treating each library loan as a lost consumer sale. In his Soapbox, Kupferschmid complained that the IA has “amassed a collection without paying the rights holders a cent.” In fact, the books were paid for. These are the books that sit on our libraries’ shelves or in our off-site repositories. They were all purchased by a library or otherwise legally acquired, and the authors were all paid in accordance with their publishing contracts. Furthermore, this is what libraries do: amass and preserve collections that serve an important, fundamental purpose in society long recognized and valued by the public, courts, Congress, as well as by publishers and authors.

Link to the rest at Publishers Weekly

PG says traditional publishers still hate ebooks, even though ebook license revenue includes virtually none of the costs associated with dealing with printed books – printing, warehousing, shipping, dealing with returns of unsold books, etc., etc., etc.

To maximize profit in a perfect publishing world, a savvy publisher would go ebook only and be a pure ecommerce company.

Of course, more than a few intelligent authors would wonder whether they really needed a publisher when they could upload their ms. to Amazon and receive a much larger share of the selling price.

PG is not privy to the conversations traditional publishers are having among themselves, but he suspects they are very worried about their financial futures. They’re riding a sick horse if they keep trying to prop up printed book sales other than on a POD basis. Traditional bookstores won’t all disappear overnight, but PG anticipates there will be a drip, drip, drip diminution in the number of physical bookstores.

He’ll put up a quote about this right after he posts this item.

Kindle Unlimited paid out over $250 million to indie authors in H1 as APA reports total H1 ebook market of $500 million

From The New Publishing Standard:

The industry journals are reporting the latest APA figures, summing up June and the first six months of 2022, painting a bleak picture for the ebook format, down 6.3% in June to $83 million compared to 2021, and down 8.5% to $500.4 million for the first six months of 2022.

By value ebooks accounted for just 12.7% of the trade market.

Except that it didn’t. At least not the total market. These figures are just those from the publishers reporting to the APA, and to be clear the APA itself makes no claim to be reporting the whole market. Not that you’d know that from some reportage, which treats the APA numbers as a definitive statement on the US ebook market.

What isn’t the APA counting? Essentially any publishers that do not report to the APA – which means all indie authors, APub, and countless small presses.

Indies of course are famously digital-first publishers, and many are solely ebook focussed. Many non-reporting small publishers are digital first or have a strong digital portfolio. APub publishes ebooks, audio and print, but given Amazon owns the Kindle store it’s a given that its titles own the Kindle store charts, as any glance at the ebook charts will confirm.

Given none of these report to the APA it’s also a given – but not one many in the industry want to say out loud – that the APA statistics only show us part of the picture.

But just how much more in trade value might the APA be missing?

We cannot know for sure, but we can be sure APub is the single biggest player in this uncounted field, and that it won’t be sharing its numbers any time soon.

But Amazon does share the amount it pays out to indie authors through the Kindle Unlimited ebook subscription platform. This doesn’t tell us total revenue, but the “royalty” paid through the “pot”.

To be clear, the pot is paid out only to indie authors and small presses loading to the Kindle store via KDP and that are enrolled in the Kindle Unlimited programme.

Bigger publishers with titles in Kindle Unlimited are paid à la carte quite separate from the pot. The same applies to APub authors.

But what we do know is how much Amazon paid out to indie authors as “royalties” in June – the same month the APA reported a total of $80 million in cold ebook revenue.

In June Amazon’s Kindle Unlimited pot totaled $43.4 million.

That’s more than half as much again as the total APA reported ebook revenue, and again this figure does not include à la carte sales from indies.

Over the first six months of 2022?

The Kindle Unlimited pot value has risen every single month except February. Here’s the running count:

• $42.2 million in January
• $39.4 million in February
• $41.4 million in March
• $41.5 million in April
• $43.3 million in May
• $43.4 million in June
• $251.2 million = H1 total

Yes, read that again, In the first six months of 2022 the Kindle Unlimited ebook subscription service paid out a quarter million in ”royalties” to participating indie authors and small presses, quite separate from its pay-out to APub authors and to bigger publishers with titles in the programme.

That’s more than half as much again of the total ebook revenue – not royalties but hard revenue – reported by the APA, that has not been counted.

Subscription services notoriously do not pay much to authors/publishers – the June rate for indie authors was $0.00458496 per page read, equivalent to a royalty of $1.37 for a 300 page book assuming all pages parsed.

. . . .

Let me end with this thought: if we take the APA’s June count and add only the Kindle Unlimited pot pay-out we know of, and still exclude all other Kindle Unlimited revenue and all other ebook revenue, that alone takes the ebook total to $123.4 million, compared to the $80 million the APA tells us.

And if we take the H1 APA numbers and the H1 Kindle Unlimited indie pot pay-out together we are looking at a revised ebook value of $751.6 million, compared to the $500.4 million the APA numbers alone tell us.

And of course we are still nowhere near counting all ebook revenue.

Link to the rest at The New Publishing Standard

The Best Ebook Subscription Services for Every Kind of Reader

From Wired:

EBOOKS HAVE NOT swept away traditional tomes the way streaming services for music, movies, and TV shows have slashed sales of discs. Physical book sales are booming, but ebooks and audiobooks have a dedicated, appreciative audience. If you love to read, an ebook subscription service is a great way to discover new titles, find recommendations, and read more indie books. We tried out several of the most popular options, delving into their available libraries, apps, and features to determine the best ebook subscription services and audiobook subscriptions for different people.

. . . .

What to Consider

How to Choose an Ebook Service

While an ebook subscription might sound ideal, you should take some time to consider the pros and cons of each one. These digital reading services are often billed as the equivalent of Netflix or Spotify for books, and there are similarities, but ebook subscriptions also have some unexpected restrictions.

Content: All ebook subscription services offer limited libraries of ebooks. (This is where the Netflix comparison is useful.) They may boast more than a million titles, but that total doesn’t necessarily include any works by your favorite authors; none of the services we tested had a single title by Cormac McCarthy, for example, though some had audiobooks of his works.

The big five publishers (Penguin Random House, Hachette, Macmillan, HarperCollins, and Simon & Schuster) dominate the bestseller charts in the US but have had limited dealings with ebook subscription services so far. Current best-seller lists are not well represented, and the modest list of mainstream hits that appears mostly comprises older titles. Whatever service you are considering, we advise browsing the available library of ebooks and audiobooks before you commit.

Reading Habits: If you only read one or two books a month, you might be better off buying popular titles, recommendations from trusted friends, or works by your favorite authors. That way, you get to choose the best ebooks and keep them. With ebook subscriptions, you lose access the moment you stop subscribing, and the library of available books can change at any time without notice.

Voracious readers who are happy to try new and unfamiliar authors will likely get the most value from ebook subscriptions. But while these services are typically described as unlimited, they often do have hidden limits. This is where they differ from services like Spotify and Netflix. With Scribd, for example, the available library is reduced when you hit opaque limits.

Support: Make sure the devices you like to read on are supported. Most ebook subscription services offer apps for Android, iOS, Windows, and Mac, at a minimum. Languages, accessibility, and extra features like search vary, so do your research to make sure the app supports your needs. Sadly, many ebook readers, like Kindles, are not compatible with ebook subscription services other than their manufacturer’s offering.

Audiobooks: Unlike ebook subscription services, some audiobook services offer a monthly credit system that allows you to buy audiobooks you can keep, even if you stop subscribing. Others offer apparently unlimited access to a streaming library, but there are often hidden limits that narrow your choice for that month after you’ve listened to an audiobook or two. Consider also the maximum bitrate for audio streams, as this differs from service to service and can impact the quality of your audiobook.

. . . .

Best Overall

Scribd

With an enormous, varied library, Scribd is the best ebook subscription service for most people. You can read or listen via your browser on any device or use the Android or iOS apps, which are clearly laid out, fully configurable, and make for a pleasant reading experience. I had no trouble finding intriguing titles, and there’s a solid mix of classics, best sellers, indie books, and even some Scribd Originals. Progress syncs across devices, so you can pick up where you left off. You can download ebooks to read offline. Scribd also includes podcasts, magazines, and a document section enabling people to upload whatever they like. Even after a recent price hike, Scribd is an attractive package that comes bundled with perks, which currently include Curiosity Stream and Peak Pro subscriptions.

On the downside, there are limits to your monthly reading. Frustratingly, the rules are not clear. If you hit the limit, access is restricted to a smaller subset until the next month begins, and some titles are labeled Available Soon. While the formatting for ebooks is generally good, some magazine formatting is poor.

Cost: 30-day free trial, then $12 per month

★ Another Alternative: Bookmate boasts a large library of ebooks, audiobooks, and comics for $10 per month and is easy to use, but the choice and extras aren’t as varied as with Scribd.

Link to the rest at Wired

Ebook Services Are Bringing Unhinged Conspiracy Books into Public Libraries

From Vice:

For years, the digital media service Hoopla has given library patrons access to ebooks, movies, and audiobooks through bulk subscriptions sold to public libraries. But more recently, librarians have started calling for transparency into the company’s practices after realizing its digital ebook collection contains countless low-quality titles promoting far-right conspiracy theories, COVID disinformation, LGBTQ+ conversion therapy, and Holocaust denial.

In February, a group of librarians in Massachusetts identified a number of Holocaust denial and anti-Semitic books on Hoopla, including titles like “Debating The Holocaust” and “A New Nobility of Blood and Soil”—the latter referring to the infamous Nazi slogan for nationalist racial purity. After public outcry from library and information professionals, Hoopla removed a handful of titles from its digital collection.

In an email obtained by the Library Freedom Project last month, Hoopla CEO Jeff Jankowski explained that the titles came from the company’s network of more than 18,000 publishers: “[The titles] were added within the most recent twelve months and, unfortunately, they made it through our protocols that include both human and system-driven reviews and screening.”

However, quick Hoopla keyword searches for ebooks about “homosexuality” and “abortion” turn up dozens of top results that contain largely self-published religious texts categorized as “nonfiction,” including several titles like “Can Homosexuality Be Healed” which promote conversion therapy and anti-LGBTQ+ rhetoric. This prompted a group of librarians to start asking how these titles are appearing in public library catalogs and why they are ranked so high.

“If [ebooks containing disinformation] were on the tenth page of results it wouldn’t be as noticeable, but they’re on the first page of results,” Jennie Rose Halperin, the executive director of Library Futures, told Motherboard. “What this says to me is that vendors don’t think people who are accessing resources through public libraries deserve quality, verifiable information.”

Hoopla serves more than 3,000 library systems and is in more than 8,500 public libraries across the US, Canada, Australia and New Zealand. Hoopla allows library users to check out ebooks from their personal devices. All anyone needs to explore Hoopla’s ebook catalog is a registered public library card. Hoopla is one of a few major ebook vendors libraries use to ensure library-goers have access to digital content. But unlike other services like Overdrive, which lets librarians order individual ebooks, Hoopla only sells ebook subscriptions, meaning that libraries have little choice over what titles they’re getting from the service.

Unlike print books that libraries can buy directly from publishers, publishers only sell lending rights to ebooks using third-party vendors like Hoopla. Ebook use has been on the rise for the past decade, and vendors like Overdrive and Hoopla have claimed dramatic increases in ebook checkouts during the pandemic when many libraries were unable to operate at a full in-person capacity. Since March 2020, demand for ebook titles from lending services like Hoopla soared.

Sarah Lamdan, a law professor at the City University of New York School of Law data analytics companies in publishing says many libraries choose to subscribe to bundles because it’s cheaper for libraries that are already strapped for cash.

“We lease these streams of content like on Netflix or Spotify,” Lamdan told Motherboard. “It’s more expensive to be deliberate and choose titles a la carte than it is to buy one of these bundles, and [libraries] are not given a lot of choice about it. Although libraries are super trusted and seen as so important to society, they’re not properly funded.”

“It’s just another way that the outsourcing of traditional information roles is really poisoning the well of fact and truth and reliable information sources,” Lamdan added.

Librarians also say that ebook subscription prices are unsustainable as they typically cost three times as much as a customer’s ebook purchase through Kindle. This is emblematic of at least a decade of tension in the digital library market in which librarians have little power to negotiate with publishers and vendors over prices that continue to climb. Libraries are also operating in a time loop where they have to keep purchasing licenses from the Big-Five publishers (Hachette Book Group, Harper Collins, Macmillan, Penguin Randomhouse and Simon & Schuster) through what’s called “metered access.” Typically ebook subscription licenses expire after a two-year term or after 26 circulations per purchase. Except the price keeps climbing.

Link to the rest at Vice

How To Get Your Self-Published Book Into Libraries

From The Creative Penn:

If you haven’t considered libraries as a market for your self-published book(s), you should.

Why? For one, there are 2.6 million libraries globally1, and they spend roughly $31 billion annually2! In the U.S., library expenditures are $14.2 billion a year2, and of this amount, $1.4 billion1 or 10.2% is spent on books!

Secondarily, the library market is growing! Two years after Joanna posted my original article, How To Get Your Book Into Libraries, the number of Academic Libraries worldwide grew to 95,361, a 111.8% increase, and Public Libraries globally grew to 406,834, a 39.4% increase! In the U.S., the number of Academic Libraries had grown 12.5%, and there were 90.5% more Public Libraries!

And third, libraries are purchasing more eBooks. According to the American Library Association (ALA), in 2020, OverDrive (a provider of eBooks to Libraries) loaned out more than 289 million eBooks worldwide, a 40 percent increase from 2019, a shift the company attributed to the global pandemic.

. . . .

If you wonder if libraries buy self-published books, the answer is, “Yes, they do.”

In its April 5, 2021 article, How Library Distribution Works for Indie Authors, the Alliance for Independent Authors (ALLI) shared the results of a 2016 survey conducted by US-based publishing service New Shelves. Per the survey, “… 92 percent of librarians reported that they regularly purchase from self-published authors and small presses.”

Although there still may be some libraries whose Collection Development Policy (the guidelines libraries use when making book purchasing decisions) might state they don’t buy self-published books, those excluding are becoming rarer and rarer.

I believe my situation is a good example. As of this writing, 156 libraries worldwide have acquired 192 copies of my self-published titles since I first introduced them to librarians a few years ago.

Also, in the last two years, I haven’t had one library inform me they don’t buy self-published books. And if you’ve heard that it’s hard getting a self-published book into a library, I would say, “It shouldn’t be easy because of the vital role libraries play in societies, but I and others are proof that it can be done.”

Link to the rest at The Creative Penn

Libraries, Publishers Battle Over Terms for E-Books’ Use

From Bloomberg Law:

States that want to give libraries a better deal on e-books are watching a publishers’ suit against Maryland, the first state to set terms for how digital books are distributed for public borrowing.

Library associations, including the American Library Association and several state groups, have been pushing for state laws to require publishers to distribute digital works to libraries on “reasonable” terms that the states would set. The groups say libraries pay too much for electronic books and should be able to get them at lower prices.

The bills and the law enacted in Maryland have set off alarm bells for authors and publishers who fear the legislation encroaches on copyrights.

Similar suits to the one in Maryland by the Association of American Publishers might follow if bills in other states move forward, copyright attorneys, publishing industry lobbyists and others said. They say the bills propose a radical rewriting of the copyright system that only Congress is able to change.

. . . .

“The Maryland case is very, very significant because we’re hoping and believe the court will say, ‘You can’t do this. This is unconstitutional,’” said Keith Kupferschmid, the president of the Copyright Alliance, a nonprofit that represents a broad group of creators. “And, presumably, other states would at least be a little more cautious. Hopefully they wouldn’t introduce the bills at all.”

. . . .

Library officials back the bills so they can loosen restrictions on the number of digital works that can circulate and not let publishers dictate pricing terms, said John Chrastka, the executive director of the EveryLibrary Institute, a nonprofit that advocates for library funding.

The Rhode Island and Massachusetts bills are based on the Maryland law. Supporters hope the bills can either be redrafted to avoid similar lawsuits or that the Maryland court will throw out the case.

In New York, Brianna McNamee, the New York Library Association’s director of government relations and advocacy, said the bill Hochul vetoed will likely be tweaked based on recommendations from her office.

“The bill’s viability in its current form is contingent on that pending litigation in Maryland,” McNamee said. “In a perfect world, if the suit goes away it would be our hope that it would provide reassurance to the governor and her staff that New York state won’t be sued upon enacting similar legislation.”

It’s not clear that the Maryland law is preempted by the Copyright Act, said Alan Inouye, the senior director of public policy and government relations for the American Library Association. The AAP’s claims aren’t valid in terms of copyright law because it’s actually a matter of contract law, Inouye said.

. . . .

The Maryland law and the similar legislation are preempted by the federal Copyright Act, which gives copyright owners a bundle of exclusive rights, including being able to decide when and how their works are distributed, Mary Rasenberger, the CEO of the Authors Guild, said.

The AAP and proponents of the lawsuit said they support public libraries and that libraries are essential in expanding readership, but the Maryland law has the potential to harm creators and weaken the copyright system.

“The public libraries are an important piece of providing public access, but they don’t operate alone in a vacuum,” said Maria A. Pallante, the CEO of the Association of American Publishers.

The Motion Picture Association, the National Music Publishers Association, and the News Media Alliance also oppose the bills because they say there could be a potential domino effect in states also creating compulsory licenses for other creative works besides e-books.

“The other industries are concerned because if states start doing this,” Rasenberger said, “then the next thing down the line is going to be movies and television programming.”

Link to the rest at Bloomberg Law

PG has suggested on many prior occasions that traditional publishers are foolish in their pricing strategies for ebooks because, after the first copy of an ebook is created, additional copies cost the publisher no more to produce.

In a perfectly-sane publishing world, ebooks would always cost much less than printed books and still generate a much higher profit margin without killing any more trees and shipping physical books long distances from the low-income nations where they are printed.

PG suggests that Amazon’s pricing sweet spot for ebooks per its KDP royalty structure is $2.99-9.99. That’s where the 70% royalty is payable. Everywhere else in the 99 cent to $200 price range permitted by Amazon, the royalty is 35%.

To the best of PG’s recollection, this pricing/royalty strategy is identical to the policy created by Amazon at or near the introduction of its ebook self-publishing option for authors that gave authors who didn’t feel a publisher added value (or couldn’t find a publisher for their books) direct access to what has become by far the largest bookstore in the world.

One of Amazon’s motives for setting and maintaining this royalty structure, indeed for putting a lot of effort to make self-publishing easy in the first place, was the attempt of major US publishers to force Amazon in increase its prices for all books to the suggested retail price set by publishers.

Amazon hadn’t grown into the international giant it is today and American publishers were more focused on killing Amazon to avoid this sort of discounting below their fancifully-created suggest retail pricing structure in order to preserve their effective monopoly over the market for books found in traditional bookstores.

Times have changed greatly since then – lots and lots of physical bookstores have gone out of business in the US (and perhaps elsewhere) and ebooks have become a significant source of income and far more significant source of profits for traditional publishers selling through Amazon.

With respect to ebooks licensed to libraries, traditional publishers have forgotten nothing and have learned nothing. The incremental cost of ebooks licensed to libraries over ebooks licensed to Amazon and other online bookstores is also effectively zero, but publishers still want to charge libraries more for exactly the same collection of electrons as Amazon offers for much less.

PG thinks there are some copyright issues in the states’ litigation claims, but this collection of lawsuits and the potential for yet another loss in court for traditional publishers reflects (in PG’s stupendously humble opinion) the ongoing stupidity of those individuals and conglomerates running traditional publishing in the United States.

Too much greed in the library sales department could end up costing publishers much, much more over the long run. It’s a risk the publishers didn’t have to take, but they did so anyway.

Hochul Vetoes New York’s Library E-book Bill

From Publishers Weekly:

Just hours before it was set to become law, New York Governor Kathy Hochul on December 29 vetoed New York’s library e-book bill. The bill is now back with the legislature, where it is tabled.

The veto comes despite strong grassroots support: in June, the bill unanimously passed the New York Assembly 148-0, and passed the New York State Senate 62-1. But the Association of American Publishers’ December 9 federal lawsuit seeking to block implementation of a similar law in Maryland sparked concern in the governor’s office. And in her brief explanation of the veto, Hochul cited the AAP’s concerns.

“While the goal of this bill is laudable, unfortunately, copyright protection provides the author of the work with the exclusive right to their works,” Hochul wrote. “As such the law would allow the author, and only the author, to determine to whom they wish to share their work and on what terms. Because the provisions of this bill are preempted by federal copyright law, I cannot support this bill. These bills are disapproved.”

The New York bill was also opposed by a cohort of powerful New York-based industry groups, including the AAP and the Authors Guild, which urged Hochul to veto the measure in a recent letter, calling the bill “an unjustified attack” that would have “a significant negative impact on the economy and jobs” in New York.

. . . .

The library e-book bills come after a decade of tension in the library e-book market, with librarians long complaining of unsustainable, non-negotiable prices and restrictions on digital licenses. Specifically, the bills emerged as a response to Macmillan’s controversial (and since abandoned) 2019 embargo on frontlist e-books in libraries, which led library advocates to take their concerns to state and federal legislators.

“This is a powerful moment for libraries,” concluded a December, 2020 report on digital lending from the ALA’s Joint Digital Content Working Group. “If we cannot find ways to make our digital collections robust and lasting, including a return to perpetual access as an option, libraries will never be able to meet an ever-increasing demand and provide equity to the communities we serve.”

Link to the rest at Publishers Weekly

New York’s library e-book licensing bill vetoed as Maryland challenge looms

From The Bookseller:

The Association of American Publishers (AAP) has welcomed the decision by New York Governor Kathy Hochul to veto a bill that would have forced publishers and authors to grant e-book licences to libraries under state-imposed terms.

New York’s State Assembly legislation was similar to a new law in Maryland which the AAP is currently challenging in court over concerns it will force publishers both in the US and abroad to license e-books to public libraries on “reasonable terms” defined by the state. A hearing on the challenge is set for February.

Vetoing the New York bill, Hochul wrote: “While the goal of this bill is laudable, unfortunately, copyright protection provides the author of a work with the exclusive right to their works. As such, federal law would allow the author, and only the author, to determine to whom they wish to share their work and on what terms. Because the provisions of this bill are pre-empted by federal copyright law, I cannot support this bill.”

The AAP said the New York bill would have contravened the US Copyright Act and pointed out it included penalties for non-compliance, “effectively chilling copyright owners from pursuing the full benefit of their copyright interests and literary properties within the state”. 

Link to the rest at The Bookseller

Wyden, Eshoo press publishers over library e-book contracts

From The Hill:

The largest book publishing companies in the U.S. are facing pressure from Democrats over e-book lending contracts with libraries that advocates and librarians have criticized.

Sen. Ron Wyden (D-Ore.) and Rep. Anna Eshoo (D-Calif.) sent letters to the publishers, Penguin Random House, Hachette, HarperCollins, Simon & Schuster and Macmillan, on Thursday asking for detailed responses about the contracts and any restrictions on deals made with libraries for e-book licensing.

“Many libraries face financial and practical challenges in making e-books available to their patrons, which jeopardizes their ability to fulfill their mission,” the lawmakers wrote. “It is our understanding that these difficulties arise because e-books are typically offered under more expensive and limited licensing agreements, unlike print books that libraries can typically purchase, own, and lend on their own terms.”
Wyden and Eshoo underscored the importance of remote access to e-books because the COVID-19 pandemic prolonged school and library closures.

Unlike with physical books, which libraries can purchase and lend out for as long as copies hold up, libraries have to adhere to conditions in licensing agreements that constrain how long they can keep e-books in circulation. Librarians and library groups have called out the licensing agreements for prices they say are too high.

Wyden and Eshoo call for the publishers to share data, including the average price of physical copies of books sold to consumers and the average price of e-book licensing to libraries, on their 100 most sold or licensed works in 2020.

Lia Holland, the campaigns and communications director for Fight for the Future, said the group was “thrilled” to see lawmakers taking action on the issue. 

Fight for the Future has been advocating for greater library access to a wide array of digital books. Holland called the “licensing schemes” on digital books “restrictive and expensive.” 

“We hope that legislators will take swift action to ensure perpetual access to knowledge and diverse voices for everyone,” Holland said in a statement. 

. . . .

The Democrats did not target Amazon with their letter. The tech giant until recently had even more restrictions in place — prohibiting Amazon published e-books to be sold to libraries for lending.

The company reached a deal in May to make all Amazon Publishing titles available through the DPLA Exchange, a library-centered content marketplace. Library patrons can access the titles through the SimplyE e-reader app.

Link to the rest at The Hill

US Senate Finance Committee Presses Publishers on Library Ebook Contracts

From Book Riot:

Earlier this year, Fight for the Future — a group of technology experts, policymakers, and creatives — launched a tool called Who Can Get Your Book, meant to highlight the challenges of accessibility and availability of ebooks in public schools and libraries, rural areas, and other communities where these disparities create burdens to information. It is but one organization seeking transparency around ebooks from publishers, and now, the US Senate Finance Committee is pushing for more.

Finance Committee Chair Ron Wyden (D., Oregon) and U.S. Representative Anna G. Eshoo (D., California) lead the latest charge, drafting a series of letters to the Big Five publishers to clarify their ebook contracts with public schools.

Ebook contracts are notoriously tricky. For libraries, who can purchase print books and own them through their natural lifespan, ebooks come with restrictions on a number of fronts. They aren’t owned by the library and instead are licensed: at any time, the books may disappear or come with circulation limits, and those licenses come at astronomical prices. In cases where licenses can be negotiated with better terms for the library, costs only grow.

These contracts and the ways they restrict access for users have become magnified over the course of the pandemic, when the digital divide became even more profound.

As reported in December, one school district in southern California found itself budgeting $27 per student every 12 months to access the classic and widely-taught The Diary of Anne Frank. The same title can be purchased in print by a library for a one-time price and used without limit; outside of the library, the average person can purchase The Diary of Anne Frank on Kindle one time from anywhere from $.20 to $14 and read it as much as desired for that single cost.

That doesn’t mean non-library purchases of ebooks are perpetual, nor are they owned by the individual who made the purchase.

“Even readers with vast personal collections of e- and audio-books should be alarmed, as most ebooks and audiobooks are also merely licensed to those who believe they are “buying” them, leaving the door open for publishers and big tech companies like Amazon to later erase books, as well as alter what they say, down the line,” said Lia Holland campaigns and Communications Director at Fight for the Future.

Beyond the costs, not all digital material is made available for licensing by schools or libraries. Amazon exclusives, for example, keep many works completely inaccessible. Who Can Get Your Book gives points for every accessible format to a title, and uses those to grade how easy it is to borrow it. Born a Crime, the popular memoir by Trevor Noah, for example, earns a D grade because the digital audiobook isn’t available outside its exclusive deal with Audible and because of restrictive licensing agreements for the ebook.

All of these challenges have led to demand for change.

“E-books play a critical role in ensuring that libraries can fulfill their mission of providing broad and equitable access to information for all Americans, and it is imperative that libraries can continue their traditional lending functions as technology advances,” reads the letter Senate Finance Committee members sent to Penguin Random House, Hachette, HarperCollins, Simon & Schuster, and Macmillan.

. . . .

“We are thrilled to see legislators taking action for the public’s right to own and preserve all books, no matter what form they are published in. With so much of our lives happening online, the opportunity to own digital books is almost nonexistent—a stark and concerning departure from how our society interacts with paper books,” said Holland.

“Through restrictive and expensive licensing schemes on ebooks and audiobooks, publishers are acting against the best interest of authors by reducing the number of titles that libraries and schools are allowed to offer and preserve. This often means that the most successful and mainstream books are the only ones purchased, locking many authors out of income from library purchases as well as away from the vast audiences of readers that public institutions serve. We hope that legislators will take swift action to ensure perpetual access to knowledge and diverse voices for everyone.”

Earlier this summer, Maryland became the first state to pass legislation on ebook licensing. The bill, which goes into effect January 1, 2022, requires any publisher offering ebooks for sale to consumers in the state also make those materials available for purchase by libraries in the state.

In other words, exclusives would no longer be allowed to be exclusive or put undue access barriers to library materials in the state. Publishers Weekly breaks down this legislation, making it sound like Amazon remains a question mark.

Link to the rest at Book Riot

Yes, of course traditional publishers would screw up library licensing of ebooks just like they screwed up everything else with their ebook businesses.

Big Business of Library E-Books

From The New Yorker:

teve Potash, the bearded and bespectacled president and C.E.O. of OverDrive, spent the second week of March, 2020, on a business trip to New York City. OverDrive distributes e-books and audiobooks—i.e., “digital content.” In New York, Potash met with two clients: the New York Public Library and Houghton Mifflin Harcourt. By then, Potash had already heard what he described to me recently as “heart-wrenching stories” from colleagues in China, about neighborhoods that were shut down owing to the coronavirus. He had an inkling that his business might be in for big changes when, toward the end of the week, on March 13th, the N.Y.P.L. closed down and issued a statement: “The responsible thing to do—and the best way to serve our patrons right now—is to help minimize the spread of covid-19.” The library added, “We will continue to offer access to e-books.”

The sudden shift to e-books had enormous practical and financial implications, not only for OverDrive but for public libraries across the country. Libraries can buy print books in bulk from any seller that they choose, and, thanks to a legal principle called the first-sale doctrine, they have the right to lend those books to any number of readers free of charge. But the first-sale doctrine does not apply to digital content. For the most part, publishers do not sell their e-books or audiobooks to libraries—they sell digital distribution rights to third-party venders, such as OverDrive, and people like Steve Potash sell lending rights to libraries. These rights often have an expiration date, and they make library e-books “a lot more expensive, in general, than print books,” Michelle Jeske, who oversees Denver’s public-library system, told me. Digital content gives publishers more power over prices, because it allows them to treat libraries differently than they treat other kinds of buyers. Last year, the Denver Public Library increased its digital checkouts by more than sixty per cent, to 2.3 million, and spent about a third of its collections budget on digital content, up from twenty per cent the year before.

There are a handful of popular e-book venders, including Bibliotheca, Hoopla, Axis 360, and the nonprofit Digital Public Library of America. But OverDrive is the largest. It is the company behind the popular app Libby, which, as the Apple App Store puts it, “lets you log in to your local library to access ebooks, audiobooks, and magazines, all for the reasonable price of free.” The vast majority of OverDrive’s earnings come from markups on the digital content that it licenses to libraries and schools, which is to say that these earnings come largely from American taxes. As libraries and schools have transitioned to e-books, the company has skyrocketed in value. Rakuten, the maker of the Kobo e-reader, bought OverDrive for more than four hundred million dollars, in 2015. Last year, it sold the company to K.K.R., the private-equity firm made famous by the 1989 book “Barbarians at the Gate.” The details of the sale were not made public, but Rakuten reported a profit of “about $365.6 million.”

In the first days of the lockdown, the N.Y.P.L. experienced a spike in downloads, which lengthened the wait times for popular books. In response, it limited readers to three checkouts and three waitlist requests at a time, and it shifted almost all of its multimillion-dollar acquisitions budget to digital content. By the end of March, seventy-four per cent of U.S. libraries were reporting that they had expanded their digital offerings in response to coronavirus-related library closures. During a recent interview over Zoom (another digital service that proliferated during the pandemic), Potash recalled that OverDrive quickly redirected about a hundred employees, who would normally have been at trade shows, “to help support and fortify the increase in demand in digital.” He recalled a fellow-executive telling him, “E-books aren’t just ‘a thing’ now—they’re our only thing.”

Before the pandemic, I had never read an e-book, and didn’t particularly want to. But, during the lockdown, I spent nearly every day wandering my neighborhood in a mask and headphones, listening to audiobooks. I wanted to hear a human voice and feel the passing of time; Libby became a lifeline. As a dual citizen of the Brooklyn Public Library and the N.Y.P.L., I toggled between library cards, in search of the shortest waiting list. I did what previously had been unthinkable and spent a hundred and eighty dollars on a Kobo. I read more books in 2020 than I had in years. I was not the only one; last year, more than a hundred library systems checked out a million or more books each from OverDrive’s catalogue, and the company reported a staggering four hundred and thirty million checkouts, up a third from the year before. (Barnes & Noble, which has more retail locations than any other bookseller in the U.S., has said that it sells about a hundred and fifty-five million print books a year.) The burst in digital borrowing has helped many readers, but it has also accelerated an unsettling trend. Books, like music and movies and TV shows, are increasingly something that libraries and readers do not own but, rather, access temporarily, from corporations that do.

. . . .

In the two-thousands, OverDrive helped publishers set up online stores and sold e-books directly to consumers through its own marketplace. The company also persuaded a few presses to license their e-books to libraries. At the time, the six largest publishers tended to sell their goods through online retailers, such as Amazon, which released its e-reader, the Kindle, in 2007. But, gradually, the Big Six began to sell digital rights to libraries under a “one copy, one user” model. As soon as one reader returned an e-book, a second reader could check it out, and so on, with no expiration date. “At the beginning, we were really trying to replicate what happens on the print-book side,” a publishing executive told me. Digital books, which could in theory be duplicated for free by any librarian with a computer, would still have waiting lists.

“We then saw the first wrinkle in one copy, one user,” Potash said. In 2011, HarperCollins introduced a new lending model that was capped at twenty-six checkouts, after which a library would need to purchase the book again. Publishers soon introduced other variations, from two-year licenses to copies that multiple readers could use at one time, which boosted their revenue and allowed libraries to buy different kinds of books in different ways. For a classic work, which readers were likely to check out steadily for years to come, a library might purchase a handful of expensive perpetual licenses. With a flashy best-seller, which could be expected to lose steam over time, the library might buy a large number of cheaper licenses that would expire relatively quickly. During nationwide racial-justice protests in the summer of 2020, the N.Y.P.L. licensed books about Black liberation under a pay-per-use model, which gave all library users access to the books without any waiting list; such licenses are too expensive to be used for an entire collection, but they can accommodate surges in demand. “At the time of its launch, the twenty-six-circulation model was a lightning rod,” Josh Marwell, the president of sales at HarperCollins, told me. “But, over time, the feedback we have gotten from librarians is that our model is fair and works well with their mission to provide library patrons with the books they want to read.”

. . . .

Libraries now pay OverDrive and its peers for a wide range of digital services, from negotiating prices with publishers to managing an increasingly complex system of digital rights. During our video call, Potash showed me OverDrive’s e-book marketplace for librarians, which can sort titles by price, popularity, release date, language, topic, license type, and more. About fifty librarians work for OverDrive, Potash said, and “each week they curate the best ways each community can maximize their taxpayers’ dollar.” The company offers rotating discounts and generates statistics that public libraries can use to project their future budgets. When I noted that OverDrive’s portal looked a bit like Amazon.com, Potash didn’t respond. Later, he said, with a touch of pride, “This is like coming into the front door of Costco.”

Alan Inouye, the senior public-policy director at the American Library Association, told me that consolidation could reduce competition and potentially drive the cost of library e-books even higher. “OverDrive is already a very large presence in the market,” he said. The company’s private-equity owner, K.K.R., also owns a major audiobook producer, RBMedia, which sold its digital library assets to OverDrive last year. But, Inouye added, OverDrive’s influence is an important counterweight to the largest publishers and to Amazon, which dominates the consumer e-book market and operates as a publisher in its own right. (Amazon did not make its own e-books available to libraries until May, when it announced a deal with the Digital Public Library of America.) When I asked Potash about the concern that consolidation could also give OverDrive too much influence over the market, he called that “a far-fetched conspiracy theory.” He cited the company’s track record of advocating for libraries, adding, “I’m a big fan of free-market capitalism.”

To illustrate the economics of e-book lending, the N.Y.P.L. sent me its January, 2021, figures for “A Promised Land,” the memoir by Barack Obama that had been published a few months earlier by Penguin Random House. At that point, the library system had purchased three hundred and ten perpetual audiobook licenses at ninety-five dollars each, for a total of $29,450, and had bought six hundred and thirty-nine one- and two-year licenses for the e-book, for a total of $22,512. Taken together, these digital rights cost about as much as three thousand copies of the consumer e-book, which sells for about eighteen dollars per copy. As of August, 2021, the library has spent less than ten thousand dollars on two hundred and twenty-six copies of the hardcover edition, which has a list price of forty-five dollars but sells for $23.23 on Amazon. A few thousand people had checked out digital copies in the book’s first three months, and thousands more were on the waiting list. (Several librarians told me that they monitor hold requests, including for books that have not yet been released, to decide how many licenses to acquire.)

The high prices of e-book rights could become untenable for libraries in the long run, according to several librarians and advocates I spoke to—libraries, venders, and publishers will probably need to negotiate a new way forward. “It’s not a good system,” Inouye said. “There needs to be some kind of change in the law, to reinstate public rights that we have for analog materials.” Maria Bustillos, a founding editor of the publishing coöperative Brick House, argued recently in The Nation that libraries should pay just once for each copy of an e-book. “The point of a library is to preserve, and in order to preserve, a library must own,” Bustillos wrote. When I asked Potash about libraries and their growing digital budgets, he argued that “digital will always be better value,” but he acknowledged that, if current trends continue, “Yes, there is a challenge.”

Readers of the future are likely to want even more digital content, but it may not look the same as it does now. Audible, which is owned by Amazon, has already made listening to books more like streaming, with subscribers gaining access to a shifting catalogue of audiobooks that they do not need to buy separately. “We have moved away from owning, to accessing,” Mirela Roncevic, a longtime publishing and library consultant, told me. Maybe readers will expect books to feel more like Web sites, and an infinite scroll will replace the turn of the page, as it has in the digital magazine you are reading now. Perhaps readers will want images and videos to be woven seamlessly into the text, requiring a new format. The e-book as we know it “will not last,” Roncevic insisted. Lending libraries were once an innovation that helped spread literacy and popularize books. Roncevic wants libraries to continue innovating—for example, by experimenting with new formats and license models in partnership with independent or international publishers. “Libraries have more power than they sometimes realize,” she told me.

Link to the rest at The New Yorker