Controlled Digital Lending Expanding

Thanks to Chris Freeland of the Internet Archive for sharing the news that various Controlled Digital Lending (CDL) projects are getting substantial grant funding:

Last week, Boston Library Consortium (BLC) announced it has received a $215,000 grant from the Davis Educational Foundation to accelerate BLC's implementation of Controlled Digital Lending (CDL). The project will support BLC's plans for integrating CDL into interlibrary loan operations across the consortium.

Charlie Barlow, BLC's executive director, highlighted the importance of the grant, writing in an announcement that the foundation funding "sends a strong signal to other libraries, consortia, and vendors that an interoperable solution developed collaboratively by and for libraries and consortia is within reach."

This project joins other active CDL grants funded by foundations, including the Andrew W. Mellon Foundation's recent grant to NISO for CDL standards, and Arcadia Fund's grants to the Internet Archive, among others.

The NISO project is getting underway and promises to develop standards for the exchange of items through Controlled Digital Lending: formats, protocols, circulation, ILL, etc. Despite controversy (and a lawsuit) over its use, more libraries are interested in CDL as a way to share works digitally, especially the literally millions of works not available in digital form. Support from major grantors contribute to CDL’s development . . . an legitimacy.

Maryland AG Defends the State's Ebook Bill

Last Friday, Attorney Generals Frosh and his office filed to dismiss the Association of American Publishers' (AAP) suit against Maryland's ebook law.

Here's a link to the motion. It's 42 pages long and a lot to digest, but very well done.

For a detailed look at many of the documents related to the case, including motions, affidavits and testimonies from both sides, please visit Gary Price’s fine work on InfoDocket.   https://www.infodocket.com/2021/12/09/the-association-of-american-publishers-files-suit-against-the-state-of-maryland-over-unprecedented-encroachment-into-federally-protected-copyrights/

As usual, he is doing a great job keeping us all up-to-date on library news.

Here's a good neutral summary of where we are in the suit from PW”s Andrew Albanese: https://www.publishersweekly.com/pw/by-topic/digital/copyright/article/88308-maryland-defends-its-library-e-book-law-seeks-dismissal-of-aap-lawsuit.html.

He covers the AAP response to our AG’s filing, including the fact it is unusual for a plaintiff to comment on ongoing legislation, especially when they have a chance for an official response coming up. I will say nothing of it beyond noting that this claim—“public access to original works of authorship is not achieved by government fiat or manipulation of terms, but rather through a system of economic incentives that foster investment, rewards, and continuous market innovations during a statutory term of protection”--would be fine if  libraries HAD ever able to negotiate ebook terms, had not only seen terms presented to us via fiat, and found that any “economic incentive” had  been great for one side and not at all good for us. Caught between public demand for digital, the pandemic, and usurious price gouging, our only recourse would be a wholesale boycott of most large publishers—not an attractive option, as it would stop access to content while suiting some in the publishing industry very nicely—or the course we are taking.  

Here’s a statement from Alan Inouye, ALA’s Senior Director, Public Policy & Government Relations :  “The Attorney General of Maryland provides a thorough and convincing argument that soundly refutes each claim by the Association of American Publishers. The American Library Association agrees with the Attorney General’s assessment that ‘publishers capitalize on the digital revolution at libraries’ expense’ (p. 6). Accordingly, the Maryland law needs to remain in place as a modest step towards positive progress in the public interest.”

Here's a statement (with which I'm sure we will all agree) from the University System of Maryland & Affiliated Institutions (USMAI) supporting AG Frosh's actions. I especially like the conclusion: "USMAI members, including the University of Maryland, College Park, and 16 other academic libraries, assert that all Marylanders benefit when residents have the equitable access to information and knowledge that they need to thrive in the 21st century."

 https://usmai.org/portal/display/MAIN/2022/01/18/USMAI+Issues+Statement+of+Support+for+Maryland+Attorney+General%27s+Defense+of+New+Law+Ensuring+Equal+Access+to+E-Books+for+Public+Libraries

The AAP has until the 28th to respond.  The initial hearing on the preliminary injunction and dismissal is February 7th. 

We in Maryland libraries thank our legislature and especially our Attorney General's office for the strong statement and defense of our residents' ability to get content through their libraries. We believe that our position is not only legal but right. Libraries should have access to any content that is licensed to the public.  That content should be available to libraries on reasonable terms.  We have released a statement explaining what we think reasonable, based upon the long-standing precedent provided by print under copyright. Our law includes provisions to ensure copyright is kept intact and libraries will use content responsibly. We thank the many publishers who already make their content available to libraries on reasonable terms, and we continue to hope for fruitful and voluntary negotiations between the library community and the larger publishers once this unnecessary lawsuit is settled, or even before then. It seems very interesting that none of the publishers have joined this suit, doesn’t it?

No matter the outcome—but I think Maryland has a chance of prevailing—this is a proud day for our state. We never wanted a lawsuit.  We had hoped our law would create an avenue for publishers to talk and actually negotiate rather than simply present their license terms for us to use or not. But now that a lawsuit has come, all of us across the county can be inspired by this strong defense of one state’s residents' right to get content through libraries and of libraries' need to have fair terms.

Eating the Publishers' Lunch?

Publishers Lunch recently used press releases from OverDrive to imply that all’s well with the library ebook market and those meanies in different states saying otherwise are wrong, wrong, wrong.

Lest readers think I am taking things out of content, here are quotes:

In contrast to lobbying efforts in some state legislatures, the dominant service provider for library ebook lending reports that the market is thriving. Overdrive notes that in 2021, "With a focus on equity of access to books for all, libraries achieved all-time records for circulation while lowering the average cost-per-title borrowed." [Note—italics added by PL)

. . .readers borrowed "506 million ebooks, audiobooks and digital magazines, a 16% increase over 2020." (That comes even as AAP and NPD Bookscan statistics show a modest decrease in ebook sales marketwide through November 2021.)

A second Overdrive release celebrates a new milestone of 121 public libraries and consortia that each loaned more than one million ebooks during 2021 -- including, for the first time, the Baltimore County Public Library (located in Maryland, whose ebook lending is being challenged in court).

It’s time to put the “circulation is high, ergo all’s well” trope to rest. I wish I could say “to rest forever,” but we know it will keep getting dragged out even though all it actually proves is that licensing works.

Let’s take the statement about Baltimore County first. The system recently separated form the Maryland Digital eLIbrary Consortium. Previously, their stats wouldn’t have been counted separately. That’s why we see them now, not because they are suddenly doing miraculously well. And what if Maryland as a state, or ever library in Maryland, has had high consortial or individual lending? This is to IGNORE THE FACT THAT MARYLAND, AND THE OTHER PUBLIC LIBRARIES IN OVERDRIVE, ARE STILL PAYING FOR MANY UNFAIRLY PRICED LICENSES ON WHICH THEY HAVE NO ABILITY TO NEGOTIATE. If we had reasonable terms, we could offer even more, circulate even more, help discover more new authors, even help generate more sales. I’ll say it again. We in libraries can meet anyone, anywhere, and compare on books from the Big 5 the cost libraries actually pay for print, the retail cost of print, and the digital cost libraries pay, confident that the digital price is NOT reasonable and NOT Negotiable. Besides, the publishing world can’t have it both ways: that the library ebooks market is thriving and so all must be well, and that in ebooks libraries are eating the publishers’ lunch, excuse me, “cannibalizing sales.” And does anyone suppose that prices are NOT set where they are (by some but not all—as I’ve said over and over, many publishers do offer reasonable deals) in order to discourage library sales and thus promote consumer sales?

Speaking of consumers, oh, is there a modest decrease in the consumer ebook market? Don’t look at libraries, obviously. Where shall we look? Hmm, I know! Why not look at agency pricing! People are perhaps just not willing to pay $14.99 and up for a digital file they don’t even own.

The implication that a high circ library ebook market proves terms are reasonable simply doesn’t hold water. Anyone who thinks so must be out to lunch.

Some Web Sessions of Possible Interest

Thanks to Chris Freeland from the Internet Archive for sending an alert about a fun upcoming virtual event:

NEXT WEEK: Public Domain Day—A Celebration of Sound
On January 20, the Internet Archive, Creative Commons and many other leaders from the Open world will honor the treasure trove of works published in 1926 that entered the public domain in 2022.

Featuring a keynote from Senator Ron Wyden, and a host of musical acts, dancers, historians, librarians, academics, activists and other leaders from the Open world, the event will explore the rich historical context of recorded sound from its earliest days, including early jazz and blues, classical, and spoken word recordings reflecting important political and social issues of the era.

January 20 @ 1pm PT / 4pm ETRegister now for the virtual event.

Of course, many important books will enter public domain in 2022, as noted on Wikipedia. Librarians can hope for high quality and possibly even free EPUB (or other formats, though of course is one important standard) to build deep and enjoyable collections.

On January 19th. 1 pm Eastern Time, COSLA, DPLA, and ReadersFirst will present “Collaborating for Access: Licensing Models that Benefit Readers, Libraries, and Publishers.” We’ll bring together library leaders and publishers to talk about the current ebook landscape and discuss licensing models that work for libraries, publishers, and readers and help further equitable access to ebooks. The panel will include the following:

Mallori Bontrager, Digital Services Manager, Independent Publishers Group
Charles A. Sherrill, Tennessee State Librarian and Archivist
Adam Silverman, Senior Director, Digital Business Development, HarperCollins Publishers
Kelvin Watson, Executive Director, Las Vegas – Clark County Library District, DPLA board member

The session will be moderated by your humble correspondent.

RSVP here: bit.ly/dpla-events

This event is apparently not universally welcomed by all members of the library community. Some have expressed dismay with, first, the emphasis on licenses when they would prefer advocacy for library ownership of digital books, and second, that time is being given to a company involved with litigation with a library. As should be clear from any thing Kelvin Watson or I have ever said on the topic, we aren’t stooges for the publishers. We are also not of the “Publishers: Threat or Enemy” mindset. When ownership rather than licensing becomes more of an option, let’s see where we are then. In the meantime, publishers and libraries have an intersection of interests, especially in a time when readership (if not among avid readers) is in decline. Hearing from the publishers won’t hurt. Let’s see what they have to say about their challenges and opportunities. Join to ask your questions!

NY Governor Vetoes Library Bill

As first reported (at least by an objective source) by Andrew Albanese with PW, Governor Hochul has vetoed S2890B that would have publishers “offer licenses for electronic books to libraries under reasonable terms.”

[Updated]: The American Library Association has released a statement that expresses well the feelings of most librarians, though no doubt those in New York feel a special disappointment.

ALA President Patricia “Patty” Wong issued the following statement: "Governor Hochul’s decision to veto S2890B / A5837B is unfortunate and disappointing. Protecting New Yorkers’ access to digital books through the library is critical to ensuring equitable access to information for all. We are grateful to the New York Library Association and New York library workers, advocates, and partners in the legislature who helped develop and champion this bill, and we will continue to work toward a solution that puts equitable access first."

One is not surprised that the Association of American Publishers ()AAP) and Authors Gild would issue quick statements of support for the veto. That is how these big Washington and New York based lobbyists bring home the weekly stipend. One might wish they were less mendacious about the bill. Here are comments from the AAP’s Pallante and an AAP statement:

“The bill that she vetoed was rushed through the state legislature in response to a coordinated, misinformation campaign, supported by Big Tech interests and lobbying groups that are notorious for wanting to weaken copyright protections for their own gain.” [Palante]

Shockingly, the bill would have forced authors, publishers, and other copyright owners to grant involuntary, digital licenses to New York public libraries under state-imposed terms, in full conflict with the U.S. Copyright Act and the comprehensive purpose that it serves. The bill attached penalties for non-compliance, effectively chilling copyright owners from pursuing the full benefit of their copyright interests and literary properties within the state.

These echo a claim from AAP made about the Maryland bill earlier this year:

We reiterate that the library market for e-books is robust and appropriate and we question the strategy of library lobbyists, who are sophisticated actors in Washington, in pushing unconstitutional legislation and a storyline that is at odds with both the operation of the law and market facts.

Big Tech? Lobbying Groups? Let’s ignore the tone-deafness of big lobbyists complaining that other lobbyists are at work, or else we might spew coffee on our keyboards in laughter. I can’t speak as authoritatively for New York as for Maryland, but for Maryland and (I will assert having spoken with some librarians New York), this is beyond nonsense. No need to mince words when these lobbyists aren’t. These lobbyists, funded by large publishers who are in any case owned by megacorporations as powerful as any so-called Big Tech, are LYING. No Big Tech supported these bills. If you think so, name them. No lobbyist from Washington or New York or anywhere created and spearheaded these efforts. If you think so, name them. This a BIG LYING LIE from LYING LIARS. Perhaps they think saying it enough will make some people believe it. These bills were brought forward by librarians for the good of library readers. They were brought forward for the good of taxpayers, who pay far more for digital access through libraries than for print, simply because the publishers set prices at whatever they want, even at amounts blatantly unfair when compared to print. Library digital prices don't operate under copyright. They operate under license. This is a consumer issue and an issue of fairness. The public deserves access to content through libraries, under copyright, and at reasonable prices. And as long as were talking about Big Tech, let's extend the point to ask if allowing the public good to remain the hands of these corporate giants is a good idea.

I will meet anyone from the AAP or Authors Guild, anytime, anywhere, with a list of prices libraries pay the Big 5 for digital and what we pay for print. Hell, let’s televise it. The facts will speak for themselves. No librarian has anything to hide here.

“Involuntary licenses under state imposed terms.” Nope. Unless they wished to deliberately withhold from the library market—something which is very much to be decided as legal under copyright—in which cased the state would have compelling reason to act, the publishers would never have been forced to enter any license by this law. The law provides a framework for publisher and libraries to talk. If the publishers simply claimed to be reasonable, nothing would have happened. Well, maybe with the law in place, the public might start looking and supporting reasonable prices for libraries. And that of course is what is really happening here: well-paid lobbyists are working to ensure that price gouging and profit will go on. It’s what they do. Just as big corporations that own the big publishers are there to make profits. Its what they do. No sense being disappointed in them.

Which is not to say we shouldn’t fight them.

Governor Hochul’s veto is harder to take. Here’s her explanation:

While the goal of this bill is laudable, unfortunately, copyright protection provides the author of the work with the exclusive right to their works. 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.

Three points:

  • Every legislator except one, speaking on behalf of the libraries of which New York is justly proud, pass a bill and you won’t stand with them? The publishers charge inflated prices on digital and rather than work for libraries to offer more content and expand digital offerings in a time of pandemic currently hitting your state hard, you don’t at least challenge? Library readers have been let down.

  • There is a legal challenge to the AAP and its various claims. What you say about copyright protection is being decided. Yet you parrot those claims, selling out other states too. Of course the AAP and others will claim that your veto validates their point. Could you have found a way to veto, if you felt you had to, without completely caving and effectively launching a salvo at other states.

  • “ . . .the law would allow the author, and only the author, to determine to whom they wish to share their work and on what terms.” WRONG! Copyright doesn’t do that. And in any case, we’re talking about licenses and consumer law. These things can be adjusted without infringing on an author’s right to her work.

The AAP no doubt hopes by challenging in Maryland to stop the momentum in other states. It worked in New York—for now. Let’s see what the legislators do in upcoming sessions. Work continues in other states, such as Massachusetts. The Maryland Attorney General is readying a defense of the Maryland bill. If we do not prevail, it will at least highlight the need for rebalancing copyright act to address the wrench that has tilted it to publishers in digital.

New York Ebook Bills Goes to Governor

 RF strongly encourages New Yorkers to express their support of this bill and asks Governor Hochul to protect New York library users by signing it into law.

A5837B has been delivered to Governor Kathy Hochul.

Assembly Bill A5837B

Relates to requiring publishers to offer licenses for electronic books to libraries under reasonable terms

Sponsor:

JEAN-PIERRE

Recent Actions:

  • Jun 10, 2021 - PASSED SENATE

  • Jun 10, 2021 - RETURNED TO ASSEMBLY

  • Dec 17, 2021 - DELIVERED TO GOVERNOR

    Review A5837B on NYSenate.gov

 What this Means:

The Governor has 10 days (not including Sundays) to approve (“sign”) or reject (“veto”) bills passed by both houses. Signed bills become law; vetoed bills do not. However, if the governor failure to sign or veto a bill within the 10-day period, the bill automatically becomes law.

If a bill is delivered to the Governor when the Legislature is out of session (typically from late June until early January), the rules are a bit different. At such times, the Governor has 30 days (including Sundays) in which to make a decision. Failure to act has the same effect as a veto. Informally, this failure to act is often referred to as a “pocket veto.”

What Happens Next:

The committee may amend the bill to satisfy concerns of committee members, leave it as is, or refer it to another committee for further deliberation. The bill may be reported to the full Senate chamber for consideration if a majority share of the committee members support it. If a bill has not been addressed by the committee by the end of the two-year legislative term, the bill is said to have 'died in committee'.

What Can I Do?

You can reach out to Governor Kathy Hochul's office at the following link: https://www.governor.ny.gov/content/governor-contact-form. Additionally, all members of the Senate welcome legislative feedback from constituents at nysenate.gov. When you use the New York State Senate website to officially support or oppose this bill, your feedback will be shared directly with your senator.

The AAP Sues Maryland

Update: It is now official that Maryland will defend its law. I’m proud of our legislators and our A.G. for fighting for Maryland residents’ ability to read digital content, blocking “windowing” and embargoes and working for reasonable and sustainable terms.

ENTRY OF APPEARANCE
Now comes Elliott L. Schoen, Assistant Attorney General, to enter his appearance
on behalf of Defendant Brian E. Frosh in his official capacity as the Attorney General for
the State of Maryland (“the State”), in the above-captioned matter.

As many people interested in the library ebook market are aware, the Association of American Publishers (AAP) has sued Maryland, seeking a temporary and permanent injunction on the digital content law that is slated to take effect on January 1, 2022. The law would require publishers to license e-books to libraries on “reasonable terms.”

I’ve been silent on this development. I’m a Maryland resident and librarian and advocated for the law. I am a member of the Maryland Library Association. We are all keeping mum so that we don’t get out in front of the Maryland Attorney General’s Office, which is charged with defending the law. We are, however, gathering support from across the country and advocating for a strong defense of the law. I can’t say anything for now, even if I note I wouldn’t be speaking for anyone but myself. I can, however, point to a number of organizations and individuals that are in Maryland’s corner.

Kyle Cortney and Jennie Rose Halperin of LibraryFutures say “What is ‘radical’ is the lawsuit’s multiple spurious claims regarding the intention of the law, attempting to deflect the blame for the price gouging and rent-seeking behavior for library digital content on technology companies rather than its own members’ behaviors in the market.”

The Authors Alliance notes that “Overall, the AAP takes the position that it is possible for state governments to support libraries without this type of legislation. Yet the fact remains that libraries have consistently had difficulties meeting their patrons’ needs with regards to digital lending: until last year, one of the major publishers even had an embargo in place, preventing libraries from obtaining many copies of new books. Without legislation addressing the issue—such as the Maryland law now under attack—there is no guarantee that publishers will offer libraries e-book licenses on terms they can afford and which meet the changing needs of patrons.“

In TechDirt, Mike Masnick writes “I assume that Maryland will argue, forcefully, that this is not a copyright law or an attempt to route around federal copyright law, but rather something else entirely. Indeed, as some have noticed, the Maryland law is deliberately "modest." It only says that if a publisher is already offering ebooks, it also has to make sure it will sell to libraries at a reasonable price. It's not forcing publishers to offer ebooks at all -- just make sure that the publishers can't treat consumers and libraries differently. And, as the libraries argued in the runup to this bill passing, there is historical evidence that a law that only impacts contracting does not impede on copyright.”

These articles are all worth a read. There are more. If pressed to say something that would not potentially forestall Maryland’s A.G. office nor comment on legalities (I’m not an attorney), I’d note that the AAP has interposed itself between what could be fruitful conversations between libraries and individual publishers to explore mutually beneficial terms more inline with what libraries pay for print for the benefit of readers and authors. Libraries could offer more titles and take chances on more authors, helping discovery and even enhancing sales. It’s a shame. The suit is simply not needed to protect the publishers. What we wanted, and still want, is dialog. The publishers tout their commitment to equity and new, perhaps previously unheard voices. How is this helping?

Well, maybe one other thing to say: a lackey lobbyist group, lapdog of oligarchic multi-billion dollar conglomerates in a time of record profits to the detriment of library readers, is spouting nonsense about democracy while fighting its very existence. Join us as we fight. Your ability to be an informed person without having to resort to a credit card is under attack. The AAP—lying agent of naked greed, lickspittle protector of larcenous price-gouging of the public funds that support library readers—you will meet only resolution and defiance.

NPR Program Today

The topic of today's show for NPR’s The 1A topic is "The Future of the Public Library." Host Jenn White will interview PLA President Melanie Huggins, along with the Internet Archive's Brewster Kahle and DPLA's John Bracken. If you have time to listen or even call in, that’d be great. The radio talk show airs at 11:00 a.m. ET: The Future Of The Public Library.

Digital issues are certain to be brought up.

Enjoy!

ALA and Other News from Alan Inouye

RF encourages all who wish to remain current on library ebook matters to follow Alan Inouye’s Public Policy and Advocacy Developments posts. Here are some from November 21.

 

--> Now:  Apply to be a member of the ALA Policy Corps, Cohort IV. Tell your colleagues!

Article in American Libraries: https://americanlibrariesmagazine.org/blogs/the-scoop/catching-up-with-ala-policy-corps/

Press Release:  https://www.ala.org/news/press-releases/2021/10/ala-seeks-applicants-national-policy-corps

Application:  https://www.ala.org/advocacy/ala-policy-corps-application

 

--> Now:  Register for ALA's LibLearnX conference in January—presented virtually. Join us!

https://twitter.com/ALALibrary/status/1449066294708477965

 

ALA Welcomes Removal of Offensive ‘Illegal aliens’ [Library of Congress] Subject Headings

https://www.ala.org/news/member-news/2021/11/ala-welcomes-removal-offensive-illegal-aliens-subject-headings

 

ALA applauds congressional passage of digital equity funds available to libraries

(and President Biden has subsequently signed it into law. So now the next phase of work begins towards getting money to libraries)

https://www.ala.org/news/press-releases/2021/11/ala-applauds-congressional-passage-digital-equity-funds-available-libraries

 

ALA w/ the Association of Tribal, Archives, Libraries & Museums, filed comments w/ the FCC on tribal libraries & e-rate. Change tribal library definition for more participation, expand board membership to include tribal representation.

https://www.fcc.gov/ecfs/filing/1112222001880

 

ALA endorses nominations of Jessica Rosenworcel and Gigi Sohn to the FCC and Alan Davidson to NTIA. ALA joined a group letter organized by Free Press and other civil society groups, and a second letter organized by SHLB and NDIA:

https://www.freepress.net/sites/default/files/2021-11/coalition_letter_on_fcc_ntia_nominations_final.pdf

https://www.shlb.org/uploads/Policy/Additional%20Policy/SHLB-NDIA-FCC_NTIA%20Nominations%20Letter%20-%20FINAL.pdf

 

ALA and ACRL joins amicus brief on Hepp v. Facebook (thanks EFF) on Section 230.  The Court has since denied the request for en banc review.

https://cdt.org/wp-content/uploads/2021/11/2021-10-28-ECF-Filer-Amicus-dckt.pdf

 

Ellen Satterwhite (big time library supporter in the inside-the-beltway policy/communications world) departs the Glen Echo Group and joins Patreon as head of US Policy. I attended her going away party.

https://twitter.com/AlanSInouye/status/1459102623311798291

 

NEWS AND ARTICLES

"Lawmakers Expand Inquiry into Library E-book Market," Publishers Weekly. Sen. Wyden and Rep. Eshoo send letters to 9 ebook distributors.

https://www.publishersweekly.com/pw/by-topic/industry-news/libraries/article/87941-lawmakers-expand-inquiry-into-library-e-book-market.html

 

Article on Jason Broughton, new director, National Library Services for the Blind and Print Disabled, Library of Congress -- in The Hill.

https://www.rollcall.com/2021/11/18/jason-broughton-nls-congress/

 

Text and Data Mining of In-Copyright Works: Is It Legal? By Pam Samuelson in CACM.

https://cacm.acm.org/magazines/2021/11/256379-text-and-data-mining-of-in-copyright-works/fulltext

 

Deborah Fallows on libraries:  "Libraries Lead the Way--Again"

https://www.ourtownsfoundation.org/libraries-lead-the-way-again/

Wyden and Eshoo Follow Up with Library Digital Distributers

As reported by Andrew Albanese in Publishers Weekly and Makena Kelly in The Verge, Senator Wyden and Representative Eshoo have followed their earlier inquiry to the Big 5 Publishers with letters to nine digital content vendors, representing a large portion of at least the pubic library market: Baker & Taylor (Axis360), Bibliotheca (Cloud Library), EBSCO, Elsevier (RELX), Gale (Cengage), Hoopla (Midwest Tape), Lyrasis/DPLA (Palace Exchange and Marketplace), OverDrive, and ProQuest.

While all of the Big 5 responded to the earlier inquiry—though the Senator and Representative’s offices are not disclosing anything said—this follow-up is predictable. The publishers no doubt (and rightly) said they could not answer some of the questions. The vendors are a better source for many queries: do they get suggested license prices from the publishers (that answer of course is “yes”), do they ever set their own price and how often do they deviate from the suggested price, what are profit margins, do they allow purchase rather than licensing of titles (answer: not without getting clobbered by the publishers), etc.

We know that availability of titles and (more surprisingly) prices and (even more surprisingly) license terms can vary among U.S. and Canadian vendors. We don’t, however, know the scope and frequency of these variations. The market could use much more transparency to determine if it is in fact fair for library readers—and tax payers. It would be very helpful to see the answers to the questions asked both of the publishers and vendors. RF hopes that the questions will be answered and the results made public. If the questions aren’t fully answered, congressional inquiries seem appropriate in light of the growing demand for library digital resources. Indeed, a report annually on these questions would be welcome to monitor the development of the market and test its fairness. Libraries have had no choice but to pay the rates publishers have asked if they wish to meet reader expectations in an increasingly digital reading ecosystem. Publishers and even some vendors have benefitted from costs that likely exceed what libraries get from print circulation. Thank you, Senator Wyden and Representative Eschoo ! This investigation is overdue.

In their words, “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,. These licensing agreements, with terms set by individual publishers and e-book aggregators, often include restrictions on lending, transfer, and reproduction, which may conflict with libraries’ ability to loan books, as well as with copyright exceptions and limitations.”

Indeed!

May Federal legislation follow Maryland and New York’s as necessary.