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 1990s, 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 1990s 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-on- demand 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 eBook, Franklin eBookman) 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 iPad 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 McEwan) 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 e- retailer 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