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Hachette to raise ebook prices for libraries by 220% – Hachette has followed in the footsteps of HarperCollins and RandomHouse by jacking up the cost of digital library books. In March, Random House increased the wholesale prices of the ebooks it offers to libraries by as much as 300 percent. Now Hachette, which only offers backlist ebooks (no new books) to libraries, is increasing its prices as well. It’s no wonder that libraries are looking to purchase indie books. Thanks LynnPaid Content
EU settles with four publishers and Apple over price fixing – EU has announced that Hachette, Macmillan, HarperCollins and Simon & Schuster along with Apple have agreed to stop price fixing. The terms of the agreement essentially follow the deal made with the DOJ. 1) Existing agency contracts with Apple will be terminated. 2) Apple will allow any other “major international ebook publisher” to terminate its agency agreement immediately. If the publishers take no action, Apple is to terminate the agreement. 3) The publishers will offer each retailer the option to terminate the agency agreement if the agreement restricts the retailer’s ability to change the price or if the agreement contains an MFN clause. If the retailer does not respond, the publisher must terminate the agreement. 4) For two years, the publishers agree to not restrict the pricing of ebooks by retailers. “However, as regards agency agreements, the aggregate value of the price discounts or promotions offered by any retailer should not exceed the aggregate amount equal to the total commissions the publisher pays to that retailer over a 12-month period in connection with the sale of its e-books to consumers.” This is a departure from the US deal because in the US deal, this is type of deal is permitted but not imposed. The language here suggests that it might be imposed. 5) No MFNs for five years. The settlement is now open for comments and it is unclear when and if the terms of the settlement will be imposed. Agreement in PDF here: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2012:283:0007:0009:EN:PDF Europa / Tech Crunch
The eBooks Case: A Canadian Perspective – Canada seems to be the only country right now that is suffering under Agency pricing by all the publishers now that the EU has come to an agreement some of the major publishers. According to reader Lynn tells me the following: ” there are two class certification cases relating to Competition Act claims (the Canadian version of the Antitrust law), Pro-sys v. Microsoft and Sun-Rype Products v. Archer Daniels Midland will be argued at the Supreme Court of Canada on October 17th. It will probably take a couple of months for the Supremes to deliver their judgment. We may then see some movement on the agency pricing issue here in Canada because the publishers will then have to start paying their lawyers to defend their actions.” More about the class action suit in Canada over price fixing at the link above. Thanks LynnCANADIAN COMPETITION & REGULATORY LAW
Jane Litte is the founder of Dear Author, a lawyer, and a lover of pencil skirts. She spends her downtime reading romances and writing about them. Her TBR pile is much larger than the one shown in the picture and not as pretty.
You can reach Jane by email at jane @ dearauthor dot com