Where Is Our Spotify for Books?

From Slate:

For many families and schools, e-books were a lifeline to keep kids reading during lockdown.
Total numbers of digital books borrowed from libraries hit 289 million in 2020—a 33 percent increase over 2019. That makes the feisty public library the main challenger to Amazon, which almost completely monopolizes private sales of e-books and sold 487,000 in 2020.

But there is a giant problem.

Many e-books have incredibly limited availability or are not available at all at public libraries, and library budgets are strained covering the escalating costs of e-book demand.

Publishers make the costs for e-books prohibitive for libraries. For example, before COVID hit, a typical deal at Macmillan was that public libraries had to pay $60 for any e-book and could lend it out only 52 times or for two years, whichever came first, after which they had to repurchase the e-book. Publishers temporarily lowered some prices and loosened rules on select titles during the pandemic, but the costs overall still severely limit the ability of libraries to offer many books. Some publishers, particularly Amazon, still refuse to let libraries get access to any of the e-books they publish, while publishers like Macmillan have withheld new releases from libraries.

. . . .

The reason publishers can charge higher price is because of a quirk in copyright law, called the “first sale doctrine.” Unlike with physical books, the courts have said libraries have no right to buy an e-book and then lend it to their members. Instead, publishers only “license” e-books and can deny that license to a library or condition the right to lend the e-book on paying that much higher price.

Some state legislators are outraged enough they have proposed legislation to force publishers to license e-books they are currently withholding from libraries, and Maryland enacted such a law this spring. But these will likely be challenged by publishers in court as preempted by federal copyright law.

For university libraries and their student patrons, the restrictions on electronic textbooks are even more severe. By one estimate, publishers refuse to license 85 percent of electronic versions of textbooks to university libraries, forcing students to either buy directly from the publisher or do without. And according to a survey during the pandemic of 82 campuses conducted by US PIRG, a consumer group focused heavily on student concerns, 65 percent of students have skipped at least one textbook purchase because of the costs.

When an e-textbook is made available to universities, it’s often more than 10 times the retail price, and may come with additional conditions and subscriptions that drive the costs even higher. “You have to pay thousands for a package with a few eBooks you need and lots of things you don’t,” complains librarian Joanna Anderson, who co-authored a letter protesting these costs signed by 3,000 librarians, academics and students.

The complicated legal distinction between selling physical books and “licensing” e-books is one reason private attempts at subscription book services for monthly fees have mostly failed or had limited book availability. In the publishing trade, publishers have the right to sell books, but authors often retain the copyrights that would allow licensing to monthly subscription services and have their own demands for fair compensation, so deals for subscription services are often legally impossible or economically untenable. One version, Oyster, shut down a few years ago. Epic! Books has had modest success with a subscription service solely for a subset of kids’ books used mostly by schools. Scribd, the most successful surviving version, still lacks most popular books.

Amazon has created an end-run around this problem by creating an unlimited reading program for subscribers solely with authors who self-publish with Amazon itself and opt into the program. Estimates are that nearly 50 percent of paid e-books downloaded are now self-published, largely due to the popularity of Amazon’s Kindle Unlimited, making Amazon’s program the most successful model for a monthly unlimited reading service—but for only a limited subset of books.

. . . .

Congress could fix the problem instantly by extending the first sale doctrine to allow school and public libraries to purchase e-books at regular retail prices and keep them in their collections permanently. At a stroke, this would triple to quadruple the number of e-books libraries could purchase with current budgets and, since the books would never expire, increase their e-book holdings by orders of magnitude over time.

The Congressional Research Service in an April 2020 review of the issue noted that Congress considered doing this back in 1998, the last time the federal copyright law was updated, but put off that decision until the market for e-books “has matured sufficiently and in a manner that would warrant further action.” Obviously, with nearly $2 billion in annual sales, e-books have reached that point.

At the same time, authors who often already struggle financially have reasonable fears that reducing library fees to publishers will further reduce their incomes. But instead of depending on strapped local library budgets to supply the income authors need to keep writing, Congress could, at the same time they restore the first sale doctrine, also institute a federal “Public Lending Right,” or PLR, a mechanism used by 35 nations around the world, including almost all of Europe, to offer authors payments for each book, physical or digital, borrowed from a public library.

In fact, the Authors Guild, which promoted a PLR in the U.S. decades ago, relaunched a campaign in 2019 to enact legislation to have the National Endowment for Humanities distribute payments to authors for each book borrowed from a library. “PLR recognizes two fundamental principles,” then-Authors Guild President James Gleick wrote in 2019, “the need for society to provide free access to books, and the right of authors to be remunerated for their work.”

Link to the rest at Slate

PG notes that, contra to the author of the OP, there isn’t a “quirk” in the copyright law.

The First Sale doctrine relates to copyrighted objects like a physical book or painting.

When an author signs a publishing agreement for a physical book, the author is granting a license to the publisher to (among other things) make copies of the author’s creation in the form of physical books and sell them to others.

An ebook is not, of course, physical. It’s a collection of organized electronic charges on a medium that can keep them from vanishing. When someone licenses an ebook, a copy of the collection of electronic charges is made and that invisible electronic packet is sent via other media capable of transmitting those charges in their organized fashion. It’s almost as easy to create and transmit a hundred copies of the ebook as it is to transmit a single copy.

A physical book only exists by itself as a manufacture object. The First Sale doctrine permits someone who purchases a physical book to give or sell her/his copy to someone else. Nobody makes a copy of the physical book during such a transaction.

Making a photocopy of a physical book to give or sell to someone else is a violation of the author’s copyight just like making an electronic copy of an ebook to give or sell to someone else is a violation of the author’s copyright.

Not so difficult after all, is it?

3 thoughts on “Where Is Our Spotify for Books?”

    • That exemplar they want to see emulated on the book side?

      https://guardian.ng/life/spotify-losses-tripled-in-2020-despite-increase-in-subscribers/

      They’re a classic dot.com era media darling: losing their shirt on every customer and making it up…with more losses.

      “Spotify’s net loss tripled, however, to 581 million euros ($698 million) from 186 million euros in 2019, mainly because of higher operating expenses.

      In the fourth quarter, operating expenses grew by 17 percent from the same period a year earlier as social charges, such as payroll taxes and expenses related to share-based compensation, weighed on the company’s bottom line.

      Spotify reported sales of nearly 7.9 billion euros, up by 16.5 percent year-on-year and in line with estimates from analysts polled by Bloomberg.

      In 2021, the company expects an operating loss of between 200 and 300 million euros, close to its equivalent loss last year of 293 million. ”

      (And lets not mention their payouts to artists which are a whole ‘nother painful story.)

  1. Considering that I can donate my used paper books to my library there needs to be a system akin to this where authors can donate e-books to libraries (when the author isn’t worried about the profit from that one source of course).
    It could build a huge indie presence in the library, saving them money and increasing visibility for those who are not part of Big Publishing’s machine. Of course, the big publishers would probably crush it immediately with lobby pressure and many would not want to risk a little less profit to provide books to libraries. Also, librarians would end up spending a lot of time wading through the dross of bad donations to find good books to put on their shelves.

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