“Amazon’s released their list of 2011′s best-selling books, revealing that 40% of the best-selling ebooks didn’t even make it onto their list of the best-selling print books. The #1 and #2 best-selling ebooks of the year weren’t even available in print editions, while four of the top 10 best-selling print books didn’t make it into the top 100 best-selling ebooks. ‘It couldn’t be more clear that Kindle owners are choosing their material from an entirely different universe of books,’ notes one Kindle site, which points out that five of the best-selling ebooks came from two million-selling ebook authors — Amanda Hocking and John Locke — who are still awaiting the release of their books in print. And five of Amazon’s best-selling ebooks were Kindle-only ‘Singles,’ including a Stephen King short story which actually outsold another King novel that he’d released in both ebook and print formats. And Neal Stephenson’s ‘Reamde’ was Amazon’s #99 best-selling print book of 2011, though it didn’t even make it onto their list of the 100 best-selling ebooks of the year. ‘People who own Kindles are just reading different books than the people who buy printed books,’ reports the Kindle site, which adds ’2011 may be remembered as the year that hundreds of new voices finally found their audiences.’”

via Slashdot: News for nerds, stuff that matters.

WordPress is web software you can use to create a beautiful website or blog. We like to say that WordPress is both free and priceless at the same time.

via WordPress › Blog Tool, Publishing Platform, and CMS.

Amazon has finally announced its long-anticipated Kindle lending library, allowing Kindle and Kindle app users to borrow Amazon’s e-books from thousands of libraries across the US. Users will be able to find the Kindle books on their participating public library’s website and check them out through Amazon, which will send the book directly to users’ devices over Whispersync.”Libraries are a critical part of our communities and we’re excited to be making Kindle books available at more than 11,000 local libraries around the country,” Amazon’s Kindle director Jay Marine said in a statement. “We’re even doing a little extra here—normally, making margin notes in library books is a big no-no. But we’re fixing this by extending our Whispersync technology to library books, so your notes, highlights and bookmarks are always backed up and available the next time you check out the book or if you decide to buy the book.”The ability to make notes and highlights—and subsequently sync them back to the system for review later—is certainly a major plus. The downside, of course, is that the e-books have to be “returned” after a certain period of time, just like any other library book. Amazon doesn’t specify on its site how long the books are borrow-able for, but when asked, Amazon spokesperson Kinley Campbell said that the expiration time varies by library and by the book.”Generally [it will be] 7-14 days,” Campbell told Ars. “We recommend checking with local libraries on questions related to availability and specific books.”Seven to 14 days isn’t a lot of time to read an entire book for some people, but it’s hard to argue with free, borrowed books. Our only complaint with this announcement is that there seems to be no comprehensive list of the 11,000 participating libraries—even Amazon’s FAQ page about public library books remains vague on this question. The requirement is that the library offers e-books via third party service OverDrive, though, so it’s safe to assume that most major libraries will be participating to some degree or another. You Chicagoans out there get to be lazy, as I’ve already confirmed that Kindle books can be found via the CPL website.Edit: Removed links to Amazon due to technical CMS problems on our end. See comments for proper links for now.

via Kindle e-books now available to borrow from 11,000 US libraries.

The publishers allege that GSU’s hosting of over 6,700 works for 600 classes commits direct copyright infringement, due to the school officials directly uploading the material; contributory copyright infringement, due to inducing others to download, copy, and read the unlicensed material; and vicarious copyright infringement, due to profiting from the alleged illegal actions.The uploaded items range from 14 pages to a few hundred pages per course. In one instance, the publishers found an entire semester’s worth of readings—nearly 80 different uploads—for an Introduction to Anthropology class. Shortly after the complaint was filed, some of the online e-reserves required a GSU username and password; however, links to the e-reserves are still located on online syllabi and course websites.GSU rebutted the claims, saying it was protected by fair use and “sovereign state immunity,” a doctrine that generally protects states and their entities from being sued by citizens. Judge Orinda Evens agreed in part with the defense dismissing the direct and vicarious infringement claims. In the first instance, she concluded that none of the named defendants directly engaged in the infringement, while in the latter instance she found no evidence that GSU profited from the alleged uploading. Evens pointed to professors who claimed they only upload material if they believe students would not buy the text if it were assigned, and who say that professors would stop using the system if they had to pay licensing fees.

via Campus copyright: publishers sue over university “e-reserves”.

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

  This archive contains 18,592 scientific publications totaling
33GiB, all from Philosophical Transactions of the Royal Society
and which should be  available to everyone at no cost, but most
have previously only been made available at high prices through
paywall gatekeepers like JSTOR.

Limited access to the  documents here is typically sold for $19
USD per article, though some of the older ones are available as
cheaply as $8. Purchasing access to this collection one article
at a time would cost hundreds of thousands of dollars.

Also included is the basic factual metadata allowing you to
locate works by title, author, or publication date, and a
checksum file to allow you to check for corruption.

ef8c02959e947d7f4e4699f399ade838431692d972661f145b782c2fa3ebcc6a sha256sum.txt

I've had these files for a long time, but I've been afraid that if I
published them I would be subject to unjust legal harassment by those who
profit from controlling access to these works.

I now feel that I've been making the wrong decision.

On July 19th 2011, Aaron Swartz was criminally charged by the US Attorney
General's office for, effectively, downloading too many academic papers
from JSTOR.

Academic publishing is an odd systemΓΓé¼ΓÇ¥the authors are not paid for their
writing, nor are the peer reviewers (they're just more unpaid academics),
and in some fields even the journal editors are unpaid. Sometimes the
authors must even pay the publishers.

And yet scientific publications are some of the most outrageously
expensive pieces of literature you can buy. In the past, the high access
fees supported the costly mechanical reproduction of niche paper journals,
but online distribution has mostly made this function obsolete.

As far as I can tell, the money paid for access today serves little
significant purpose except to perpetuate dead business models. The
"publish or perish" pressure in academia gives the authors an impossibly
weak negotiating position, and the existing system has enormous inertia.

Those with the most power to change the system--the long-tenured luminary
scholars whose works give legitimacy and prestige to the journals, rather
than the other way around--are the least impacted by its failures. They
are supported by institutions who invisibly provide access to all of the
resources they need. And as the journals depend on them, they may ask
for alterations to the standard contract without risking their career on
the loss of a publication offer. Many don't even realize the extent to
which academic work is inaccessible to the general public, nor do they
realize what sort of work is being done outside universities that would
benefit by it.

Large publishers are now able to purchase the political clout needed
to abuse the narrow commercial scope of copyright protection, extending
it to completely inapplicable areas: slavish reproductions of historic
documents and art, for example, and exploiting the labors of unpaid
scientists. They're even able to make the taxpayers pay for their
attacks on free society by pursuing criminal prosecution (copyright has
classically been a civil matter) and by burdening public institutions
with outrageous subscription fees.

Copyright is a legal fiction representing a narrow compromise: we give
up some of our natural right to exchange information in exchange for
creating an economic incentive to author, so that we may all enjoy more
works. When publishers abuse the system to prop up their existence,
when they misrepresent the extent of copyright coverage, when they use
threats of frivolous litigation to suppress the dissemination of publicly
owned works, they are stealing from everyone else.

Several years ago I came into possession, through rather boring and
lawful means, of a large collection of JSTOR documents.

These particular documents are the historic back archives of the
Philosophical Transactions of the Royal SocietyΓΓé¼ΓÇ¥a prestigious scientific
journal with a history extending back to the 1600s.

The portion of the collection included in this archive, ones published
prior to 1923 and therefore obviously in the public domain, total some
18,592 papers and 33 gigabytes of data.

The documents are part of the shared heritage of all mankind,
and are rightfully in the public domain, but they are not available
freely. Instead the articles are available at $19 each--for one month's
viewing, by one person, on one computer. It's a steal. From you.

When I received these documents I had grand plans of uploading them to
Wikipedia's sister site for reference works, WikisourceΓΓé¼ΓÇ¥ where they
could be tightly interlinked with Wikipedia, providing interesting
historical context to the encyclopedia articles. For example, Uranus
was discovered in 1781 by William Herschel; why not take a look at
the paper where he originally disclosed his discovery? (Or one of the
several follow on publications about its satellites, or the dozens of
other papers he authored?)

But I soon found the reality of the situation to be less than appealing:
publishing the documents freely was likely to bring frivolous litigation
from the publishers.

As in many other cases, I could expect them to claim that their slavish
reproductionΓΓé¼ΓÇ¥scanning the documentsΓΓé¼ΓÇ¥ created a new copyright
interest. Or that distributing the documents complete with the trivial
watermarks they added constituted unlawful copying of that mark. They
might even pursue strawman criminal charges claiming that whoever obtained
the files must have violated some kind of anti-hacking laws.

In my discreet inquiry, I was unable to find anyone willing to cover
the potentially unbounded legal costs I risked, even though the only
unlawful action here is the fraudulent misuse of copyright by JSTOR and
the Royal Society to withhold access from the public to that which is
legally and morally everyone's property.

In the meantime, and to great fanfare as part of their 350th anniversary,
the RSOL opened up "free" access to their historic archivesΓΓé¼ΓÇ¥but "free"
only meant "with many odious terms", and access was limited to about
100 articles.

All too often journals, galleries, and museums are becoming not
disseminators of knowledgeΓΓé¼ΓÇ¥as their lofty mission statements
suggestΓΓé¼ΓÇ¥but censors of knowledge, because censoring is the one thing
they do better than the Internet does. Stewardship and curation are
valuable functions, but their value is negative when there is only one
steward and one curator, whose judgment reigns supreme as the final word
on what everyone else sees and knows. If their recommendations have value
they can be heeded without the coercive abuse of copyright to silence
competition.

The liberal dissemination of knowledge is essential to scientific
inquiry. More than in any other area, the application of restrictive
copyright is inappropriate for academic works: there is no sticky question
of how to pay authors or reviewers, as the publishers are already not
paying them. And unlike 'mere' works of entertainment, liberal access
to scientific work impacts the well-being of all mankind. Our continued
survival may even depend on it.

If I can remove even one dollar of ill-gained income from a poisonous
industry which acts to suppress scientific and historic understanding,
then whatever personal cost I suffer will be justifiedΓΓé¼ΓÇ¥it will be one
less dollar spent in the war against knowledge. One less dollar spent
lobbying for laws that make downloading too many scientific papers
a crime.

I had considered releasing this collection anonymously, but others pointed
out that the obviously overzealous prosecutors of Aaron Swartz would
probably accuse him of it and add it to their growing list of ridiculous
charges. This didn't sit well with my conscience, and I generally believe
that anything worth doing is worth attaching your name to.

I'm interested in hearing about any enjoyable discoveries or even useful
applications which come of this archive.

- ----
Greg Maxwell - July 20th 2011
gmaxwell@gmail.com  Bitcoin: 14csFEJHk3SYbkBmajyJ3ktpsd2TmwDEBb

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via Papers from Philosophical Transactions of the Royal Society, fro download torrent – TPB.

The publisher says it tried everything it could to stamp out these unauthorized copies, but it was unable to stop the flood — and it’s a good thing it couldn’t, since the book rocketed to the No. 1 slot. It has since fallen to No. 2. Although it remains to be seen how many books get sold when the official version is available, there’s no question that the publisher and the author have effectively gotten millions of dollars worth of free marketing for their title. The publisher admits it has spent virtually nothing on marketing so far, but has already boosted the size of the print run.

via The Future of Media: It’s Not Piracy, It’s Marketing — Tech News and Analysis.

The explosive growth of ereading is creating the biggest change to the publishing industry since Gutenberg. Bricks-and-mortar sales are declining as digital distribution and self-publishing rise. The rapid proliferation and adoption of ereading devices by tens of millions of US consumers are accelerating these trends.

As ebooks reshape the industry, publishers, booksellers, and device manufacturers need to understand trends and changes in consumption patterns quicker than ever before. Our latest survey uncovers consumer behaviors and attitudes towards ebooks that can help industry players face challenges and exploit opportunities in the brave new world of publishing.

Elastic Path's consumer research report on ebooks reveals:

Why and how consumers read digital content

How much they spend on ebooks versus print books

How they discover books and where they buy

And more….

via Brave New Publishing World: Assessing the Impact of Ebooks on Consumers | Elastic Path Software.

Responses to Amazon.com's hire of Laurence Kirshbaum as publisher have varied from worried to fear of a “dampening” effect on competition among delegates at the BEA conference.

Word that started to spread Sunday night was confirmed first thing Monday morning with the announcement that Kirshbaum, former TimeWarner c.e.o.-turned-agent, would be heading up Amazon's publishing operation in New York.

Everybody knew that an Amazon push into frontlist publishing was coming: the move into original genre books and the cooperation with Houghton Mifflin Harcourt was not enough to satisfy the giant's ever-hungry maw. Highly-placed executives from New York houses have been migrating to Amazon for a while, and the company ratcheted up expectations after circulating a recruiting letter for various personnel a few weeks back. The question was only when.

The news spread swiftly around the Javits Center even though the exhibition floor was not yet open, the first day of BEA being devoted to conference sessions. For Kirshbaum, it seemed a natural: as Workman's Bob Miller put it, “Larry missed running the whole show. Being an agent just wasn't the same.”

Independent booksellers took the news in their stride: “it didn't surprise” outgoing ABA president Michael Tucker, whose store is in San Francisco. Another major indie bookseller, Elliott Bay's Rick Simonsen (on Amazon's home turf of Seattle), saw it being “of more concern to publishers than to booksellers at this point. Remember, most booksellers have to deal with B&N's Sterling [publishing subsidiary] already. And Amazon will now get trapped in the real world!”

The proprietor of a store much closer to New York, who preferred to talk on background, said that given the state of Borders, and the likely difficulties Amazon may encounter with B&N, indies might actually get higher discounts on the books Amazon publishes since they will need a bricks and mortar storefront.

What people on the publishing side are feeling—again, off the record for the most part—is worried. Publishers, already feeling squeezed, have been feeling even more so since Monday morning.

Agent Richard Curtis, who doubles as proprietor of E-Reads, one of the earliest e-publishing and POD reprinters of out-of-print books, said: “I think Larry is an iconic branded figure in the American book business and will be the perfect person to bring the old and new worlds of publishing together.

via Amazon’s Kirshbaum move could reduce competition—BEA | The Bookseller.

I cordially invite you to the XVIII. International Book Festival, to the launch of my first book ‘Copyright Pirates’. The launch will take place on the 15th of Aprin, 3 PM in the Osztovits Levente hall.

The event will be in English!

On Tuesday 1 March, several publishing offices in Europe were raided by inspectors from the European Commission. “They burst in like cowboys” said Francis Esménard, the president of French publisher Albin Michel, to journalists at 01net, even if “they were only going to find legal contracts”. Elsewhere, they seized smart phones and laptops from senior executives and no doubt ruined a good few lunches. No one likes to meet a Eurocrat at the best of times, but these ones may be beating the death knell of the publishing industry.The background to these raids is the agency model many big publishers have adopted to sell ebooks. Under this model, instead of selling the ebooks wholesale and allowing the retailer to set the price they charge the customers, the publisher itself sets the price of the ebooks and the retailer takes a commission. The potential problem with this arrangement is that it could, according to the EU commission statement explaining the raids, “violate EU anti-trust rules that prohibit cartels and other restrictive business practices”.

via EU anger over ebook deal suggests hard times ahead for publishers | Books | guardian.co.uk.

Specifically, I saw that a self-published book could be offered on Kindle for 99 cents, and still turn a 35 cent profit. I was stunned! I walked around in a daze for, well, days, trying to explain to people what that meant. No one seemed impressed. To me it was like receiving the keys to the kingdom, and I immediately set a goal to become the world’s greatest 99-cent author.

Joe: Which, at this moment, you are. This fascinates me, because when Amazon began offering 70% to ebooks priced $2.99 and up, a lot of people considered staying at 99 cents to be slumming.

Which was naive. Coming from a legacy publishing background, I knew that 35% royalties were much better than anything the Big 6 offered. Even so, when I first got into this, I thought that cheap ebooks would be a loss lead, that would get people to read my more expensive books.

And yet, when I lowered the price of The List from $2.99 to 99 cents, I started selling 20x as many copies–about 800 a day. My loss lead became my biggest earner.

via A Newbie’s Guide to Publishing: Guest Post by John Locke.

LibraryGoblin sez, “HarperCollins has decided to change their agreement with e-book distributor OverDrive. They forced OverDrive, which is a main e-book distributor for libraries, to agree to terms so that HarperCollins e-books will only be licensed for checkout 26 times. Librarians have blown up over this, calling for a boycott of HarperCollins, breaking the DRM on e-books–basically doing anything to let HarperCollins and other publishers know they consider this abuse.”

I've talked to a lot of librarians about why they buy DRM books for their collections, and they generally emphasize that buying ebooks with DRM works pretty well, generates few complaints, and gets the books their patrons want on the devices their patrons use. And it's absolutely true: on the whole, DRM ebooks, like DRM movies and DRM games work pretty well.

But they fail really badly. No matter how crappy a library's relationship with a print publisher might be, the publisher couldn't force them to destroy the books in their collections after 26 checkouts. DRM is like the Ford Pinto: it's a smooth ride, right up the point at which it explodes and ruins your day.

HarperCollins has some smart and good digital people (they're my UK/Australia/South Africa publisher, and I've met a ton of them). But batshit insane crap like this is proof that it doesn't matter how many good people there are at a company that has a tool at its disposal that is as dangerous and awful as DRM: the gun on the mantelpiece in act one will always go off by act three.

And that's why libraries should just stop buying DRM media for their collections. Period. It's unsafe at any speed.

I mean it. When HarperCollins backs down and says, “Oh, no, sorry, we didn't mean it, you can have unlimited ebook checkouts,” the libraries' answers should be “Not good enough. We want DRM-free or nothing.” Stop buying DRM ebooks. Do you think that if you buy twice, or three times, or ten times as many crippled books that you'll get more negotiating leverage with which to overcome abusive crap like this? Do you think that if more of your patrons come to rely on you for ebooks for their devices, that DRM vendors won't notice that your relevance is tied to their product and tighten the screws?

You have exactly one weapon in your arsenal to keep yourself from being caught in this leg-hold trap: your collections budget. Stop buying from publishers who stick time-bombs in their ebooks. Yes, you can go to the Copyright Office every three years and ask for a temporary exemption to the DMCA to let your jailbreak your collections, but that isn't Plan B, it's Plan Z. Plan A is to stop putting dangerous, anti-patron technology into your collections in the first place.

The publisher also issued a short statement: “HarperCollins is committed to the library channel. We believe this change balances the value libraries get from our titles with the need to protect our authors and ensure a presence in public libraries and the communities they serve for years to come.”

Josh Marwell, President, Sales for HarperCollins, told LJ that the 26 circulation limit was arrived at after considering a number of factors, including the average lifespan of a print book, and wear and tear on circulating copies.

As noted in the letter, the terms will not be specific to OverDrive, and will likewise apply to “all eBook vendors or distributors offering this publisher's titles for library lending.” The new terms will not be retroactive, and will apply only to new titles. More details on the new terms are set to be announced next week.

For the record, all of my HarperCollins ebooks are also available as DRM-free Creative Commons downloads. And as bad as HarperCollins' terms are, they're still better than Macmillan's, my US/Canadian publisher, who don't allow any library circulation of their ebook titles.

via HarperCollins to libraries: we will nuke your ebooks after 26 checkouts – Boing Boing.

Slashdot

“Ambiguity surrounds the real impact of digital book piracy, notes Brian O’Leary in an interview with O’Reilly Radar, but all would be better served if more data was shared and less effort was exerted on futile DRM. ‘The publishing industry should be working as hard as we can to develop new and innovative business models that meet the needs of readers. And what those look like could be community-driven. I think of Baen Books, for example, which doesn’t put any DRM restrictions on its content but is one of the least pirated book publishers. As to sales, Paulo Coelho is a good example. He mines the piracy data to see if there’s a burgeoning interest for his books in a particular country or market. If so, he either works to get his book out in print or translate it in that market.’”

Telegraph Blogs

If book publishers want to see the next decade in any reasonable health, then it’s absolutely imperative that they rethink their pricing strategies and business models right now. I hope this example will illustrate why:

I’m a big fan of Iain Banks’ novels; I always buy them in hardback as soon as they come out. It doesn’t matter what reviewers say, I need to have his books immediately. His latest novel, Surface Detail, came out a few days ago and promptly arrived at my office – all 627 pages of it. I lugged the thing home and began reading it this morning.

Being a Culture novel, it’s a real page-turner and I found it difficult to pull myself away from it. I didn’t want to lug it back to the office again, not least because I didn’t have any space left in my bag, so I did the unthinkable – I googled surface detail ePub so I could download and read it on my iPad (and iPhone).

I try doing this every six months or so, and I usually end up mired in a swamp of fake torrent links and horrible PDF versions; for what it’s worth, this was mostly out of curiosity, since six months ago I didn’t own an iPad.

This time, it took me 60 seconds to download a pristine ePub file, and another five minutes to move it to my iPad and iPhone. While this was going on, I took the opportunity to poke around the torrent sites and forums that my search had yielded, and discovered a wonderful selection of books, including:

Freedom, by Jonathan Franzen

Our Kind of Traitor, by John le Carre

Jump! by Jilly Cooper

The Fry Chronicles, by Stephen Fry

Eat Pray Love, by Elizabeth Gilbert

Solar, by Ian McEwan

Zero History, by William Gibson

Obama’s Wars, by Bob Woodward

Now, that’s not all of the current bestsellers, but it’s not a bad start. “Oh, but we’ve still got the backlist!” I hear some publisher cry. No such luck, because some helpful pirate has bundled entire collections of popular backlist novels into a single torrents, including:

Iain M. Banks’ Culture novels

Terry Pratchett’s Discworld novels

Lord of the Rings

Narnia

Harry Potter

Artemis Fowl

Twilight

The Hunger Games

Every Ken Follett book

Every Stieg Larsson book

Every Stephen King book

Every Douglas Adams book

etc.

Pretty much all of these books are available in ePub, mobi, PDF and every other popular format (the non-fiction and literary selection is much worse though, which probably reflects the tastes of the people uploading the torrents – that’ll change soon enough).

I am not a torrent-finding genius – I just know how to add ‘ePub’ to the name of a book or author. I don’t need a fast internet connection, because most books are below 1MB in size, even in a bundle of multiple formats. I don’t need to learn how to use Bittorrent, because I already use that for TV shows. And Apple has made it very easy for me to add ePub files to my iPad and iPhone. So really, there is nothing stopping me from downloading several hundred books other than the fact that I already have too much to read and I think authors should be paid.

But why would the average person not pirate eBooks? Like Cory Doctorow says, it’s not going to become any harder to type in ‘Toy Story 3 bittorrent’ in the future – and ‘Twilight ePub’ is even easier to type, and much faster to download to boot.

After Christmas, tens of millions of people will have the motive, the means, and the opportunity to perform book piracy on a massive scale. It won’t happen immediately, but it will happen. It’ll begin with people downloading electronic copies of books they already own, just for convenience’s sake (and hey, the New York Times says it’s ethical!). This will of course handily introduce them to the world of ebook torrents.

Next, you’ll have people downloading classics – they’ll say to themselves, “Tolkein and C. S. Lewis are both dead, so why should I feel bad about pirating their books?” Then you’ll have people downloading ebooks not available in their country yet. Then it’ll be people downloading entire collections, just because it’s quicker. Then they’ll start wondering why they should buy any ebooks at all, when they cost so much. And then you go bust.

(In case you think this is just a scary story, think again – a conservative estimate this month suggests there are 1.5-3 million people looking for pirated eBooks every day [nb: this is a link to a PDF]. A suggestion: If you gave away a free eBook copy with physical books, that might help things. A bit.)

But of course I’m exaggerating. Most publishers won’t go bust. eBook prices will be forced down, margins will be cut, consolidation will occur. New publishers will spring up, with lower overheads and offering authors a bigger cut. A few publishers will thrive; most publishers will suffer. Some new entrants will make a ton of cash; maybe there’ll be a Spotify or Netflix for books. Life will go on. Authors will continue writing – it’s not as if they ever did it for the money – and books will continue being published.

Three years ago, I wrote a blog post called The Death of Publishers. Back then, most commenters didn’t believe that eBook readers would ever rival physical books for convenience and comfort. They didn’t think that it would ever be that easy to pirate books. The post caused a splash at the time, but it didn’t change anything.

Here’s an excerpt:

Book publishers have had a longer grace period than the other entertainment industries. Computers and iPods had an easy time besting DVDs and CDs, but it’s been difficult to make something that can compete with a book. It may be strange to hear, but a book is a fantastic piece of technology. It’s portable, it doesn’t need batteries, it’s cheap to print and easy to read. This has led many publishers to complacency, thinking there’s something special about books that will spare them from the digital revolution. They’ve seen so many poor or substandard eBook readers that they think it’ll never be done properly.

They’re wrong. eBook readers are about to get very good, very quickly. A full colour wireless eBook reader with a battery life of over a week, a storage capacity of a thousand books, and a flexible display will be yours for $150 in ten years time. If this sounds unbelievable, consider this – the first iPod was released only six years ago and cost $400. Imagine what an iPod will look like in four years time.

How wrong I was! It’s only taken us three years to get the Kindle 3 at a mere $189, with a battery life of a month and a storage capacity of 3500 books. Sure, it doesn’t have colour or a flexible display, but it does have global wifi and 3G, and it’s a lot lighter than I thought it might be. Give it another year or two and we’ll have that colour as well.

(I was also wrong about scanning and OCRing being the main way of pirating books – turns out it was people cracking the DRM of eBooks that publishers had helpfully formatted and distributed themselves!)

But I was right about the complacency of publishers. They’ve spent three years bickering about eBook prices and Amazon and Apple and Andrew Wylie, and they’ve ignored that massive growling wolf at the door, the wolf that has transformed the music and TV so much that they’re forced to give their content away for practically nothing.

Time’s up. The wolf is here.

Steal this book: The loan arranger | The Economist

AMAZON.COM says soon you will be allowed to lend out electronic books purchased from the Kindle Store. For a whole 14 days. Just once, ever, per title. If the publisher allows it. Not mentioned is the necessity to hop on one foot whilst reciting the Gettysburg Address in a falsetto. An oversight, I’m sure. Barnes & Noble’s Nook has offered the same capability with identical limits since last year. Both lending schemes are bullet points in a marketing presentation, so Amazon is adding its feature to keep parity.

Allowing such ersatz lending is a pretence by booksellers. They wish you to engage in two separate hallucinations. First, that their limited licence to read a work on a device or within software of their choosing is equivalent to the purchase of a physical item. Second, that the vast majority of e-books are persistent objects rather than disposable culture.

If you own a physical book, in much of the world you may sell it, lend it—even burn or bury it. You may also keep the book forever. Each of those characteristics is littered with footnotes and exceptions for e-books. We are granted an illusion of ownership, but may read only within the ecosystem of hardware and software supported by the bookseller with sometimes additional limitations imposed by publishers. Witness Amazon’s remote deletion—since abjured—of improperly sold copies of George Orwell’s “1984″ and “Animal Farm” in 2009. This Babbage recalls an Apple executive, Phil Schiller, extolling to him in 2003 the virtues of purchasing downloadable music when that company’s iTunes Store launched, and the dominant model was for recurring subscriptions. Mr Schiller described buying a song as owning it. Asked if one could therefore sell the song, Mr Schiller said no. He explained:

I do think of it as ownership, and it really does fit the definition of legal ownership. [There are] certain boundaries on your rights, just as on everything I own. I can own a car but that doesn’t give me the right to speed 100mph in it.

That was as tendentious then as it is now, and applies just as directly to Apple’s current e-book offerings. True, Apple removed digital rights management (DRM) protection from its music when the recording industry decided its best tool to fight Apple’s near-total ownership of digital downloads was to make it possible for music to be played on devices other than iPods. But the licensing terms for music didn’t change, and books and video remain locked down, however ineffective such protection is.

But the reason for restricting lending, even with the sham of offering it in Amazon’s or Barnes & Noble’s form, is to distract people from the fact that buyers are spending real money to buy a book they may read just once. To judge from the information Amazon provides, the long tail applies to e-books as it does everywhere else. Many different titles are flogged, but the most disposable and ephemeral have the lion’s share of units sold. Dan Brown’s epics are rarely re-read, judging by how many copies are available for one penny or given away in free book bins weeks after release. Allowing the loan of “The Lost Symbol” by any purchaser to any other e-book hardware or software user worldwide turns each buyer into a one-person lending library. Publishers don’t much like libraries, either, despite the chin-wagging otherwise. (In the US, the public lending right or remuneration right doesn’t hold; the first-sale doctrine allows library lending of physical media without additional fees.)

With a physical book, the afterlife of a disposable read is to hand it off to another party: a library sale, a friend or relative, or the free bin outside a used bookstore. Such books are also purchased in the millions and sold for one penny plus shipping online partly as a marketing effort by booksellers who can then include their own catalogs with each sale. An e-book, however, lives in limbo. Neither moving on to the next life, nor returning to this one, it can never be freed.

That will change. Just as with music, DRM will be cracked. As more people possess portable reading devices, the demand and availability for pirated content will also rise. (Many popular e-books can now be found easily on file-sharing sites, something that was not the case even a few months ago, as Adrian Hon recently pointed out.) The end-game is unclear. Authors can’t turn to touring to obtain revenue in the way musicians can, though some can charge steep speaking fees. Nor can authors produce their work in 3D, only readable in certain special theaters. (McSweeney’s has a proposal in that regard.)

All is not lost, however. Despite fewer adults reading fewer books, billions are still sold worldwide each year, with an increasing portion being digital. Publishers and booksellers need to get non-readers to pick up a device and buy books, and existing readers to read more. Lowering the risk of purchasing a book that a reader may not like would reduce the friction between considering a title and clicking the buy button.

In fact, Barnes & Noble and Starbucks are experimenting with a sort of loan in their bricks-and-mortar shops. The bookseller allows its Nook hardware owners to read books willy-nilly on its stores’ Wi-Fi networks for up to an hour a day. Starbucks has partnered with several publishers to allow full access to some titles, but only while a browser is in the store. Barnes & Noble’s effort is a year old and Starbucks’ was launched just a few days ago.

In other words, they are finally doing with digital books what they have long practised with the printed sort. After all, most bookshops nowadays let you pick a book off the shelf and read it at your leisure, sometimes providing comfy armchairs. Cafés have been making books and newspapers available to patrons for centuries, to entice them to stick around for another cuppa.

The college-textbook market provides another replicable business model. Students pay through their noses for new textbooks at the start of term only to resell them at the end to other students or back to the original bookshop at a discount. Alternatively, they rent books for a fee while leaving a deposit which is returned when the book comes back to the shop. Creating a legitimate digital resale market along similar lines ought to be possible. If, that is, publishers can be convinced to let what are in effect mint-condition digital copies to go at a lower price.

Introducing either de facto rental (purchase and resell at prices set by the bookseller) or the actual sort (read a book in a set period of time for a lower fee) would expand general and specialist readership alike, while discouraging a turn to piracy by breaking the appearance of immutable, high prices. At the same time, it would enable publishers, booksellers and authors to sidestep the first-sale doctrine of physical media, and to rake in revenue each time a “used” digital copy passes from hand to hand.

The music and film industries fought a decade-long losing battle for the digital realm that only put them at odds with their best customers. The book business may yet be able to avoid recapitulating all that pain and disruption, not least by pinching ideas from the off-line world.

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The basic idea is to offer publishers another way to reach readers and to give readers the chance to try more books — books that perhaps they wouldn’t normally peruse if they had to pay more for them. Initially, Wowio specialized in offering digital versions of comic books and graphic novels, usually formatted as Adobe PDFs. So it was a natural step for the company to offer graphic ads that are inserted in e-books.

The ads themselves aren’t intrusive: There are no annoying highlighted links in the text, nor are there irritating animations or takeovers to interrupt the reading experience. The advertisements are simply pages added to a book, typically up front: Notices for movie site Fandango and auction site iTaggit appeared in the copy of H.G. Wells’ The War of the Worlds that I read. It’s much like the advertising you’d see in a magazine, except that if you want more information or are enticed by a promotion, all you have to do is click to visit the advertiser’s site.

“We think we’re creating a broader audience for some of these titles,” Wowio’s CEO Brian Altounian told me. “I think folks are going to download more books because they’re saving the costs” of having to drive to the store or pay more for them.