Electronic publishing IP implications of online publishing and

Electronic publishing: IP implications of online publishing and digital distribution Lynette Owen, Copyright Director, Pearson Education Ltd, United Kingdom

The history : academic and professional publishers (1) • Major difference in the nature and speed of progress of electronic publishing between publishing sectors: academic and professional publishers started in early 1990 s, on CD-ROM and online • Demand came from users wanting to search large bodies of content e. g. journals and legal databases • Payment for access on subscription basis, paid by employers or academic libraries • Access usually via desktop or laptop computer

The history: academic and professional publishers (2) • By late 1990 s publishers had progressed to online delivery; major investment in digitising back journal catalogues • Almost all academic journals now published online; some have abandoned print versions • Academic book publishers also embarked on digitisation programmes, for print-ondemand supply and e-book programmes

The history: trade (mass market) publishers • Far slower to move to electronic publishing • Users generally wanted to read whole book rather then to search large bodies of content; reluctant to read on a computer • Some early exceptions e. g. travel, restaurant and wine guides • Early dedicated e-readers (Sony Data Discman, Rocket e. Book, Franklin e. Bookman) failed

What has changed in recent years? • New generation of e-readers far more successful (Sony Reader, Amazon Kindle and Barnes & Noble Nook) although screen size and lack of colour in some has not encouraged textbook use • Early 2010 saw launch of Apple multi-function i. Pad tablet computer – more suitable for textbooks? • Apps enable e-books to be read on smartphones

IP implications: who controls the rights? • Essential for publishers to acquire the rights they need from authors to enable them to publish electronically themselves or license others to do so • If necessary, rights need to be cleared retrospectively for older titles • Literary agents now more prepared to recognise that verbatim e-book rights represent another publishing format and the print publisher expects to control them

IP implications: inclusion of third party copyright material • Not enough to secure electronic rights in author’s original work; need to clear permission to use any quoted material (text, photos, illustrations) in electronic version • Rights may have to be recleared retrospectively for older works • Rightsholders need to set reasonable rates for electronic permission

IP implications: Open Access (OA) • Interested parties such as scientific research funding institutes may require that resulting publications are made available on OA basis (journal articles) • Universities may seek to claim ownership of copyright in works produced by faculty using university time and facilities; contracts need to be clear

IP implications: e-book pricing and payments to author (1) • Academic publishers tend to price e-book version at same price as print version, and to pay royalties on both on net receipts rather than on recommended retail price • Trade publishers often publish expensive hardback edition first then cheaper paperback a year later. E -book price tends to equate to paperback price; most publishers were paying authors 25% royalty • E-book sales can affect hardback sales; some major US houses considered delaying e-book version until 6 months after hardback launch

IP implications: e-book pricing and payments to author (2) • Some trade publishers have moved to “agency model”; they set e-book price and e-retailer takes 30% cut • Authors and agents have been pressing for larger share, e. g. 50% or even 75% • Some authors made e-book arrangements direct, bypassing their print publishers (e. g. Stephen Covey, Ian Mc. Ewan) • Amazon currently offer 70% of e-book price to authors who contract direct with them on exclusive basis

IP implications: other issues • Territoriality: if there are different rightsholders for the same book in different markets, this must be reflected in e-book arrangements • The public expects e-books to be cheaper than print versions • Do buyers ever really “own” an e-book if the eretailer can delete it remotely? • Do e-books make piracy easier?

Online piracy (1) • Electronic piracy is on the rise for both books and journals – we need to learn lessons from the music and film industries • Some piracy is commercial; some results from individuals “sharing” with friends (cf Napster) • Academic textbooks have been severely affected; some publishers employ full time staff and tracking software to track down piracy

Online piracy (2) • The UK Publishers Association launched a Copyright Infringement Portal which enables members to issue notice and takedown to internet service providers carrying infringing material • Most online piracy results from scanning print copies rather then copying e-books which are usually DRM protected • When licensing e-book rights, need to ensure licensees observe territorial restrictions and apply DRM

IP implications: the future (1) • International legislation (e. g. the WIPO Copyright Treaty) specify that unauthorised electronic use of IP is an infringement and that it is illegal to circumvent technical protection measures • The domestic legislation of each country needs to reflect those requirements and impose strict penalties for infringement • Cooperation is needed from internet service providers with provision for swift notice and takedown

IP implications: the future (2) • There should be a fair balance between the interests of creators and users • However, the creative industries need to combat the perception that everything on the web should be free • High quality and reliable content can only be delivered if creators and those who invest in bringing their work to market – publishers – can depend on receiving a fair return for their labours