Skip to main content

Random House Germany Goes Halfway, Adopts "Soft" DRM

Bertelsmann announced on Tuesday that its Germany publishing subsidiary, Verlagsgruppe Random House, will allow its distributors to start using digital watermarks, or "soft" DRM, on 1 October.

Do you here that? It’s the sound of a fundamental shift in the industry.

Though it is described as "not formally part of" the international Penguin Random House publishing conglomerate, Random House Germany is still a close cousin. It’s also the largest publisher in Germany, and now it is following in the footsteps of its next two largest competitors, Holtzbrinck and Bonnier, both of which opted for a lighter form of DRM earlier this year.

They have not yet gone DRM-free, but this is still great news for ebook readers everywhere.

As I have reported in the past (including as recently as last Friday), a digital watermark is one of the lighter forms of DRM. It consists of a tiny bit of unique code that is added to a copy of a file when it is (ideally) sold to a customer. The code doesn’t impact the reading experience, and it can be used to identify the customer who bought the file should that file turn up on a pirate service.

This is not DRM-free, but it is the next best thing. But I would not set off fireworks just yet, because the publishers could still be using hard DRM in certain ebookstores.

There’s disagreement in technical circles as to whether digital watermarks count as DRM, but for the time being we’re going to have to count it that way – and not just because publishers think that way.

While the publishers are using a softer form of DRM, they still see digital watermarks as DRM (Random House Germany was clear on this point in their announcement). That means when they don’t have the option of digital watermarks, they could opt for hard DRM.

For example, the Kindle Store only offers two DRM options in KDP: no DRM and hard DRM. This forces a publisher to either use Kindle DRM or no DRM, and we cannot assume that the publishers will opt for DRM-free.

Pottermore, for example, uses digital watermarks on the ebooks it sells, but it also applies Kindle DRM to any Harry Potter ebook you send to your Kindle account.

Similarly, a spokesperson for the Bonnier imprint Ullstein Buchverlage confirmed that its ebooks use Kindle DRM.

Edit: In the comment section, a reader confirmed that this mixed-DRM situation was common in France:

That’s what happens here in France, where many small publishers choose watermarks, many small to medium e-booksellers do watermarks, and only Amazon, Kobo, Apple and Google do encryption-based DRM.

I am still waiting to hear back from Random House Germany, but I would not assume that any publisher has completely switched to soft DRM without explicit confirmation.

BuchReport.de

Kindle Unlimited Paid Authors $0.0058 Per Page Read in July

Amazon has released its monthly author report on Kindle Unlimited today. The retailer has boosted the funding pool for July 2015 to a record high of $11.5 million dollars.

The funding pool is used to pay authors and publishers who had submitted their books to KDP Select and agreed to give Amazon a digital exclusive. The pool is divvied up via an opaque calculation where each publisher and author gets a share for each page read from one of their books.

The share varies from one month to the next. In June, when Amazon was still paying each time an ebook was loaned, the share was worth about $1.34.

The payout for July is based on Amazon’s standard page says, and according to one author I spoke to the payout was $0.0057791577669113 per page read. (SelfPublisherBibel.de is reporting a slightly different figure, $0.00576 per page read.)

That is just over half a cent per page, which works out to serious money for prolific authors or novelists whose books are read cover to cover.

Take Kate Wrath, for example. One of her books, E, earned her $2,132.07 in Kindle Unlimited in July. Subscribers read a total of 368,924 pages (by Amazon’s measure), or the equivalent of 795 people each reading the book cover to cover.

If we divide the earnings by the number of reads, we get $2.68 for each time the book was read cover to cover. In comparison, Wrath has this book priced at $2.99 in the Kindle Store, netting her just under $2 per copy sold.

The $11.5 million paid out for July is over four times as much as the $2.5 million Amazon paid out last July, and it brings the total paid to authors and publishers over the past 12 months (August 2014 to July 2015) to $98.15 million.

The previous monthly pools were worth:

  • May 2014: $1.2 million
  • June 2014: $1.2 million
  • July: $2.5 million (Kindle Unlimited launches)
  • August: $4.7 million
  • September: $5 million
  • October: $5.5 million
  • November 2014: $6.5 million
  • December 2014: $7.25 million
  • January 2015 – $8.5 million
  • February 2015: $8 million
  • March 2015: $9.3 million
  • April 2015: $9.8 million
  • May 2015: $10.8 million
  • June 2015: $11.3 million
  • July 2015: $11.5 million

***

Amazon changed the way it paid authors a month and a half ago in order to better reward authors for putting their longer works in Kindle Unlimited, but the new setup has proven equally beneficial for authors of shorter works.

Some authors have objected to the change from the old system to the new, but as you can see from the above math  it is possible for authors to earn serious money.

And I’m not the only one to say so; Hugh Howey wrote earlier today that he was thrilled by last month’s results. (Edited to add: Joe Konrath has also shared his results; he is pleased.)

Howey only added his books to KU after the new system took effect:

Even though the new KU seemed to reward novels over short stories, I immediately began publishing shorter works and making them available in KU. I wanted to see if short fiction — an area I’m fond of and have made a career exploring — was still viable in KU. After joining the program, I released several titles in the 7,000 – 12,000 word range. KU is no longer as generous when it comes to short fiction, but the pay-per-page estimates seemed fair to me. I went all-in with my backlist novels, and I published my new short stories.

I knew within a week that I’d made the right decision to join KU. My KU ebooks saw an immediate boost in ranking. Not only were the page-reads mounting, but the sales of those ebooks were also on the rise! This was like advertising that I got paid for, and advertising that led to more paid sales. The only cost was exclusivity.

Based on the past month, Howey has reached a conclusion contrary to the one recently espoused by John Scalzi. Howey thinks that limiting the distribution of an ebook can have a positive benefit by concentrating sales in a handful of channels, thus boosting sales rank and leading to more sales.

Kindle Unlimited has reached a million titles and continues to grow, so I would bet that Howey is not the only author to figure that out.

image by Bill Selak

Crowd-Funding Site PubSlush to Shut Down Next Week

PubSlush , the first startup to style itself a "Kickstarter for books", is shutting down on 23 August.

IndieReader reported, and several authors have confirmed, that PubSlush sent out an email on Thursday which announced the abrupt closure. No reason was given, although PubSlush did say that "We want to thank you for your constant support of Pubslush through the years and we wish you the best of luck in your business".

The news has left authors scrambling to  – well, I would not say that any author was scrambling.

The news hasn’t caused much of a ruckus on Twitter (that might be an indicator of just how little business PubSlush has been doing), although I did find one author who planned to eventually find a replacement platform for pre-orders.

Launched in September 2011, PubSlush Press was originally intended to be a crowd-sourced publisher. Authors could submit a sample, and if accepted by PubSlush it would be promoted on the site. If the project picked up enough backers then PubSlush would publish the book and distribute the pre-sales.

While that sounds like a workable idea, Victoria Strauss of Writers Beware read the fine print when PubSlush launched and found many questionable contract terms and misleading claims, many of which remained unchanged even after Strauss publicly criticized PubSlush.

According to PW, in July 2012 PubSlush shifted away from publishing books to simply crowd-funding them. To the best of my knowledge PubSlush continued as a crowd-funding right up until it decided to close.

Aside from the issues raised when it launched, PubSlush did not draw much attention in the press in the following three years, and according to one author it did not do much business, either.

Caren Gussoff reviewed PubSlush for the SFWA blog last October. Her opinion was generally good but she did not that the site wasn’t terribly busy:

Frankly, once I’d annoyed my social network and email lists about my campaign, and begged them to share with their networks, that was about all the exposure I could wring out of it. … Pubslush gets virtually 0% of the “stranger browsing” traffic that Kickstarter does. So, though my project was findable, there was no one to find it. In fact, every single contributor to my campaign — except one — was directly associated to me by first or second degree, and I feel fairly confident that if I did some sleuthing, the one stranger is also associated…I just don’t immediately recognize his name. 

It sounds like authors would be better off at one of the major crowd-funding sites, doesn’t it?

That’s not just an idle question; PubSlush is survived by several competitors with similar models, including Pentian and Inkshares. And to make matters more interesting, both of those companies use a model very similar to the idea that PubSlush discarded in 2012.

IndieReader

image by Guzmán Lozano

Author Bruce Sterling Predicted the Web and World of 2015 – in 1993

In 2015, the web is a wild and chaotic place. Few could have predicted that it would come to epitomize the saying that we cannot live with it or with out it, but author Bruce Sterling is the exception to the rule.

Back in 1993 Sterling testified before the US Congress. He was speaking in favor of the National Research and Education Network(NREN), a proposed network infrastructure that would be overseen by the National Science Foundation, NSFNet. But Sterling didn’t come as himself; instead he spoke in the role of a time traveler from 2015.

Gizmodo recently discovered Sterling’s testimony from 1993, and it is shockingly accurate summary of modern society. He predicted everything from 80% of the web being porn, the prevalence of encryption, and Anonymous to our utter dependence on the web and the power of online communities.

For example, tell me if this sounds familiar:

Since communications *is* power in an Information Society, giving fantastically advanced communications to the Research and Education communities did in fact empower those communities quite drastically by comparison with interest-groups lacking that advantage. Today, one of the most feared political organizations in the world is the multi-national anarchist libertarian group called the Students for an Utterly Free Society.

That reminds you of Anonymous, doesn’t it? Sure, the names are different and the tech is different, but the description is more of a hit than a miss.

And so was Sterling’s description of how online activism spreads at the speed of an electron, crossing not just borders but languages:

Thanks to NREN, however, spasms of student unrest can now spread like lightning across entire continents. Advanced AI translation programs installed on the Net only made matters worse, since in 2015 the global leaders of the student movements are not only extremely radical, but French.

Sterling also predicted that everyone, including even the authorities, would become so dependent on the web that they would not know how to live without it. (This hasn’t quite happened, but we are getting there.)

And finally, Sterling foresaw the prevalence of encryption, porn, and piracy:

Take for instance a recent FBI raid on an enormous archive of encrypted Iranian files, illicitly stored in an obscure NREN node in North Dakota. Luckily the FBI was able to decrypt these files thanks to an inside informant. Deciphering these archives revealed the following contraband:

  • Eighty percent graphic image files of attractive young women without veils on, or, in fact, much clothing of any kind.
  • Fifteen percent digitally stored pirated copies of Western pop music and Western videos, still illegal to possess in Tehran.
  • And, five percent text files in the Farsi language describing how to build, deliver and park truck-bombs in major urban areas.

You can fault him for getting the ration wrong if you like (90% porn, 9% piracy, and 1% text files), but the concept is eerily accurate.

And so was his prediction of the power of an online community when it focuses its wrath on a single target:

Since it is now possible to transact business entirely in cyberspace, including financial transactions, many information entrepreneurs in 2015 have simply given up any physical home. Basically, they have become stateless people, 21st Century gypsies.

"A recent tragic example of this occurred in the small town of North Zulch, Texas. There some rural law enforcement officers apprehended a scruffy vagabond on a motorcycle in a high-speed chase. Unfortunately he was killed. A search of his backpack revealed a device the size of a cigarette pack. In searching the dead man’s effects, the police officers, who were not computer literate, accidentally broke the device. This tiny device was actually a privately owned computer bulletin board system with some 15,000 registered users.

"Many of the users were wealthy celebrities, and the apparent outlaw biker was actually an extremely popular and nationally known system operator. These 15,000 users were enraged by what they considered the wanton destruction of their electronic community. They pooled their resources and took a terrible vengeance on the small town of North Zulch, which, by contrast, had only 2,000 residents, none of them wealthy or technologically sophisticated. Through a combination of harassing lawsuits and sharp real-estate deals, the vengeful board users bankrupted the town. Eventually the entire township was bulldozed flat and purchased for parkland by the Nature Conservancy.

That is a fictionalized event, but we’ve seen online mobs attack with even less justification than a direct attack on an online community and so I have no problem picturing the scenario described by Sterling.

The EFF has the entire testimony archived on its site. I think it’s worth your time to read; this is perhaps the most accurate prediction of modern society short of Forster’s short story, The Machine Stops.

image by hanspoldoja

Cengage, McGraw-Hill, and Pearson File Suit Against Textbook Importer

Three major textbook publishers filed a lawsuit this week against a a textbook importer by the name of Information Recyclers, and the three fellows accused of running it. The lawsuit, Cengage Learning et al v Hunting et al, was filed on Tuesday in the US District court of Massachusetts.

The 14-page filing accuses the three men of importing and selling pirated counterfeit copies of textbooks whose copyrights belong to the three publishers. The publishers allege that the imported textbooks were unauthorized reproductions which violate the publishers trademarks and copyrights.

If this case sounds familiar, you’re not alone. The filing immediately reminded me of Kirtsaeng v Wiley, the landmark US Supreme Court ruling that said that legally produced textbooks could be imported with or without the approval of the original publisher.

Originally filed in 2008 against Supap Kirtsaeng, then a college student, Kirtsaeng v Wiley settled a key detail of the first sale doctrine. Kirtsaeng was sued for importing and reselling cheaply produced foreign editions of textbooks belonging to Wiley. The publisher argued that this violated US copyright law, and won the case at both the district and appellate level, but ultimately the US Supreme Court ruled that Kirtsaeng had the legal right to resell textbooks which had been produced legally.

…

(the rest of this post has been eaten by a wordpress bug, sorry)

 

Kindle eBooks with Improved Typography Use New KFX File Format

When Amazon first announced in May that the Kindle platform would be getting prettier ebooks, they left a lot of questions unanswered, including exactly how Amazon was pulling it off.

Yesterday’s update has answered some of those questions.

Reports are coming in from a couple different directions that the new typography, kerning, and other improvements are tied to a new Kindle file format. Alles eBook.de reported yesterday, and a couple readers on MobileRead Forums confirm, that ebooks which have the new features also come with a file suffix of KFX.

Little is known about the file format at this time, but we do know that you can’t build one on your own (ebook developers have tried without success).

Someone has already unpacked one of the new KFX files and revealed clues in the metadata that suggest Amazon has a new ebook generator tool which they use to make the KFX files:

{key:"kfxgen_package_version",value:"PackageVersio n:YJReaderSDK-1.1.67.2 Month-Day:06-18″},
{key:"kfxgen_application_version",value:"6.24.1.0″ }

I can also report that Amazon is claiming that many ebooks have the new features when in fact they do not. I bought three two books which Amazon promised would have the new typography,but when I read the ebooks in the Kindle iPad app they did not have the formatting. Also, when I downloaded them, they were still in the older AZW3 file format.

While I am annoyed to have wasted my money, I can also see that Amazon has given us an obvious indicator that tells us which ebooks have the new features.

Now we can start taking the file apart and seeing how it ticks.

German eBook Sales up 12.8% in the First Half of 2015

The AAP may have reported a 9.3% decline in ebook sales in the first four months of 2015, but the news coming from Germany is much more positive.

BuchReport.de has shared a few details from a recent market survey from Boersenverein and GfK. A grand total of 25,000 German consumers were surveyed, and the numbers crunched.

eBooks made up an estimated 5.6% of the German ebook market in the period ending June, up from 4.9% in the first half of 2014. That’s an increase of 12.8% year over year.

Around 4.2% of the total German population aged 10 years (2.9 million people) had bought an ebook at some point in the first six months of 2015. That’s up slightly from the 4%, or about 2.7 million, that bought an ebook in the same period of 2014.

Boersenverein and GfK have been jointly conducting this survey since the first quarter of 2014 (you can find post reports here). They do not, however, release very many details, just the ones I mentioned above.

image by Ines Njers

Opera Acquires a WhiteLabel Netflix-Like App Service, Considers Selling Itself

Web tech company Opera announced on Saturday that it had missed its second-quarter revenue forecasts and was thinking of finding a buyer, but that hasn’t stopped its strategic acquisitions.

TechCrunch caught the press release on Friday, reporting that:

Browser maker Opera today announced that it has acquired Bemobi — a subscription-based mobile-app-discovery service with a focus on the Latin American market. Opera expects the acquisition to close in the third quarter of 2015. Financial details of the transaction were not disclosed.

Like most (all?) of Opera’s other revenue sources, Bemobi is a B2B company. They don’t offer the subscription service to consumers. Instead, they sell it to telecoms so it can be bundled into a subscriber’s monthly cell phone bill. Bemobi boasts 500 million users and an extensive range of apps from indie and major developers.

Opera has no similar service, but they do have a number of different services to offer to telecoms, including App Pass (a metered access platform for apps) and Sponsored Pass (ad-subsidized web access). There’s also the data compression tech used in Opera Max.

Opera has all sorts of nifty tech, but what they don’t have is enough revenue. Reuters says that the company is exploring a sale.

Online advertising and browser firm Opera Sofware is considering a sale of the company after missing second-quarter revenue forecasts and cutting its full-year expectations, the board of the Norwegian company said on Saturday.

The search for a buyer, or other forms of partnership, comes "in response to strategic interest in the company from a number of parties", and will be aided by bankers at Morgan Stanley International and ABG Sundal Collier, it added in a statement.

The strategic review will be concluded in the second half of 2015.

Opera said the early numbers showed its second-quarter revenues had grown by 45% to $146 million, but apparently that wasn’t enough for analysts, who expected 51% growth.

The firm expected adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $29 million, while analysts on average had expected earnings of $30.6 million.

Given that revenue was up year over year and that the company was profitable, "unhappy analysts" strikes me as a rather dumb reason to sell the company. But perhaps there’s some detail they’re not sharing that would explain it.

image by Johan Larsson

There’s an Audible Group of Authors Who Are Unhappy About the Audiobook Market

There’s been a lot of talk in the mainstream press over the past few months about the blue sky opportunities for audiobooks, but reports on the ground are forecasting much stormier weather.

A few days ago the editor of The Passive Voice blog posted a note concerning Audible. It seems that his wife was losing the long-time narrator of her audiobooks. The narrator was no longer interested in working for a share of the revenues but instead wanted to be paid for his/her services.

The narrator was objecting to the low royalty earned when Amazon sold an audiobook bundled with an ebook. The audiobooks often cost $1.99 when bundled, netting the author and narrator $.80 to split between them. That is simply not enough to suit the narrator.

Passive Guy’s post sparked a long discussion in which authors painted a very different picture from the one that was glowingly described in the above links.

Many authors are dissatisfied with the current audiobook market (consumers are displeased with Audible’s technical problems, but that’s nothing compared to how authors feel about the supply situation).

Some authors object to the ebook/audiobook bundles, so much so that they discuss ways to actively disable the Whispersync feature (and thus discourage Amazon from offering a bundle):

It’s my understanding that you have to have a 10% difference between your book and the audio version in order to not have Whispersync connected.

Others were more sanguine, noting that the bundled audiobooks weren’t lost revenue but found sales. Readers who buying the audiobook bundles would not have bought the audiobooks on their own. "I think most people who buy Whispersync audiobooks wouldn’t have otherwise bought that audiobook, so you’re not losing a full price sale in most cases… but it may be tough to convince the narrator of that," one commenter noted.

In fact, the audiobook bundle issue is causing far less strife than you would think from reading Teleread’s report from yesterday. Far more authors are dissatisfied with the overall royalty situation.

It’s not just the price of the bundles but also that Amazon has absolute control over prices and keeps 60% of revenue to itself. This is discouraging some authors from releasing audiobooks, including one who commented that " if ACX was more like KDP, where you could have more control over pricing and they took a reasonable percent I’d use it again".

Another noted that it wasn’t just the money but also the general lack of control over how the audiobooks were sold:

With no keywords, no pricing control, not even getting to choose your own categories, and their terrible reporting system, it was especially galling when ACX lowered their royalty rate. People keep saying that audiobooks are the next great frontier of digital publishing (Mark Dawson even said it yesterday in his webinar) but I can’t see it if this is how they treat producers and suppliers. I’ll never do another audiobook with them again. In fact, I regret every dime I spent on producing audiobooks just so Amazon could use them to their advantage.

But as several commenters pointed out, Audible is the only game in town. "Your only actual options are to go cd via a music distributor and hope that anyone can actually find the thing, or do your own store, one wrote. They added: "And hope somebody can find the thing."

As another author wrote:

It’s the royalty share that has me annoyed.  Since Amazon (er, I mean Audible) does not actually foot the high cost of production, they really shouldn’t be taking such a huge share of the income.

Instead they give us the choice of a bad royalty, or a terrible royalty.  You can get the bad one if you go "exclusive."  If you don’t go exclusive, you get the terrible one.

I think I’ll suck it up and go for the terrible one when I finally get around to recording a book or two — because then I can help build competing venues. We need strong competing venues if we are to get Audible to behave.

While the unfavorable view is by no means universal, the few positive comments were far outweighed by the negative, and both were dwarfed by the neutral comments.

So what’s an author to do?

Well, one does not have to deal with Audible or ACX; one could distribute an audiobook through CDBaby or through one of the competing audiobook publishers.

And in the long run, I would expect that a competing service will be launched, preferably one that would solve the technical problems faced by Audible users. There’s an obvious need for an ACX competitor which can be used by authors not in the US. And since the tech for syncing an audiobook and ebook already exists, it’s not like Audible is doing anything that can’t be copied.

But until someone is willing to invest money to compete with Amazon, this is all just talk. When it comes to downloadable audiobooks, Audible is effectively the only game in town.

images by meddygarnet, mrsdkrebs, ESwift

Buck Rogers, Sherlock Holmes, and How Trademark Can Trump Copyright

A recent story over at Ars Technica has reminded me that there can be more to a copyright lawsuit than just copyright.

Ars reports that a movie studio has filed suit to get Armageddon 2419 A.D, the original Buck Rogers story, declared as public domain. The studio wants to make a movie based on the story and is unable or unwilling to come to terms with the author’s estate.

The story was written in 1928 by science fiction author Philip Francis Nowlan. The author died in 1940, leaving his rights to be managed by various entities. Currently, that is Dille Family Trust. That group (or its predecessor) has been managing the rights for the past decades, including licensing the Buck Rogers name for a short-lived tv series in the late 1970s.

Since you can find that novella on Project Gutenberg and since there is no evidence that the copyright was renewed in 1956, the studio has a slam dunk case.

The work is in the public domain, so the studio can move forward and make that movie, right?

Not necessarily. The studio will win this lawsuit but there is still the issue of trademarks. The estate owns trademarks over the name Buck Rogers, as well as other elements from the authors works, and that could be the deciding factor on this licensing issue.

We’re going to have to watch and see how this plays out in court and in the conference room, but I think what we might have here is another example of a trademark trumping the public domain status of a published work.

If you’re like me, you’re probably thinking that trademark has nothing to do with books. That’s copyright, which is an entirely different part of IP law.

Yes it is, and no it’s not.

I’ll let Don McGowan explain. He’s a law professor and is the general counsel for The Pokemon Co, and back in 2012 he wrote:

It may help in looking at this situation to understand what is a trademark. Think of a name like "Halo". That’s a trademark owned by Microsoft for its popular video game series. Because they’ve registered the mark they always write it as "Halo®". What that mark means, to the owner of the mark, is actually "[Text string that represents my video game franchise]". So Microsoft can’t, for example, write a slogan like "There’s a Halo® around this game" because what that says when Microsoft writes it is "There’s a [text string that represents my video game franchise] around this game". To Microsoft, in the context of video games, "Halo" means only one thing: its games.

So there are valid reasons why one might hold a trademark on a copyrighted work, and if you accept that then it brings up a whole new question:

Can a trademark on a work trump the copyright status of said work?

I ask this because we keep running into lawsuits over licensing public domain works that hinge on trademark and not copyright.

For example, the estate of Edgar Rice Burroughs maintains its control of the Barsoom stories on the basis of the trademarks on elements used in the original stories ( trademarks which I had previously erred and described as bogus). Similarly, the Buck Rogers lawsuit is going to eventually turn on the status of the trademarks on details in the story.

But that is beyond the scope of this post; I am leaving this for the lawyers argue over.

Speaking of lawsuits, that brings me to Sherlock Holmes.

As I have previously reported, earlier this year the Conan Doyle estate sued Miramax, Penguin Random House, and Mitch Cullin over Cullin’s book, A Slight Trick of The Mind, and the movie based on it. That movie, Mr Holmes, starred Ian McKellen and hit theaters in July.

The estate had a weak copyright claim and a questionable trademark claim. I would have loved to have seen this point argued in court, but alas movie studio settled with the estate.

I can understand why Miramax settled; it was cheaper than fighting the case in court.  And that is a shame because the trademark claim would likely have been shot down had the case gone to court.

The thing about trademarks is that they have to be defended. McGowan, again:

Since to Microsoft the term "Halo" used in the context of video games means only its games, if anyone else uses the term "Halo" and isn’t talking about Microsoft’s game, Microsoft has to take steps to stop them from doing that. So if Sony launches a game about angels and calls it "Halo" then Microsoft has to sue Sony to make sure that consumers know that the word "Halo" means Microsoft’s game and nothing else. That’s an obligation under trademark law, and if Microsoft doesn’t bring that suit then it risks having a court someday declare that it no longer has the right to have the term "Halo" used for only its games.

There are a couple relevant facts about the Sherlock Holmes trademarks. The first is that the estate doesn’t own all the trademarks (seriously). The second is that the estate hasn’t been visibly defending the trademarks.

For example, when the estate was sued several years ago over the copyright status of the Sherlock Holmes character, it should have defended its rights by filing an immediate counter suit over the trademark. I can’t find any sign that this occurred; instead, the Conan Doyle estate fought the copyright case all the way to the Supreme Court, and lost.

Similarly, the excess of Sherlock Holmes fanfic available suggests that the estate has not been defending its trademark.

If the most recent Sherlock Holmes lawsuit had gone to court, I would put money on the trademark being ruled invalid.

My reasoning is simple: the estate wasn’t defending the trademark, so it was no longer valid. And my justification was even simpler: allowing the trademark to block the reuse of a public domain work effectively extends the copyright in perpetuity.

But again, that’s a matter for lawyers to argue over.

Given that there is a lot of money involved, this is a point that will eventually be settled in court, and I’d bet that it will make its way to the Supreme Court before it’s done.

Ars Technica

Kris Rusch: Amazon is in a Price War With Publishers

Amazon surprised many pundits over the past year as they signed deal after deal that gave publishers control over ebook prices, but now I think we know why.

While Amazon was publicly fighting with Hachette last summer and fall, it also quietly negotiated a new "agency lite" contract with Simon & Schuster. That deal was followed by similar quiet negotiations that resulted in deals with Macmillan and HMH, and not so quiet negotiations that lead to deals with HarperCollins and then Penguin.

No one is talking about the specifics of those contracts, but from what we can see from the outside all of those deals involved publishers having control over their ebook prices (ie, Agency). Given how Amazon bitterly fought against Agency pricing, these deals came as a shock.

I think Kristine Katherine Rusch may have the explanation. She was browsing for books and noticed that while the ebook prices were consistent, Amazon’s prices for paper books were shockingly low:

Agency pricing has returned to ebooks, which means that publishers are setting their own ebook prices and the retailers, like Amazon, are not discounting. The ebook price on Amazon is clearly a price-match with Barnes & Noble, not something that Amazon has done.

I poked around Amazon, looking at e-book prices, and almost fell off my chair for a second time. Lisa Scottoline’s next book, which releases in October, has a $14.99 ebook. So does Michael Connelly’s November release. And Stephen King’s November release. Robert Crais’s next book shows a $12.70 Kindle edition paired with a $13.37 hardcover. Does that sound familiar?

And what’s fascinating to me is that these books, and the dozens of other traditionally published upcoming releases that I looked at are coming out of different publishing companies. Not different imprints of the Big 5, but each of the Big 5.

Once again, pricing seems…agreed upon.

After some more digging, she concluded that "Amazon is leaving the ebook prices—set by the publisher—alone…and messing with the paper prices":

I mean seriously messing with the paper prices. I should not have been able to get a brand-new hardcover for more than half off the list price on the day the book released. Maybe at Christmas. Maybe nine months from now, as the publisher gets ready to release the mass market paperback.

But now? Release day? Seriously?

I looked at all of my other preorders and found the same issue. The hardcovers are the same price—or nearly the same price—as the Kindle edition.

Rusch thinks that Amazon has accepted that it can’t win the ebook fight with the major publishers and has instead turned to fighting a price war by aggressively discounting the print editions.

Basically, if Amazon can’t get the publishers to offer what Amazon sees as reasonable ebook  prices, the retailer has decided to make sure that no one is going to buy those expensive ebooks.

I think Rusch is right, because her conclusion also explains why Authors United suddenly launched a media campaign against Amazon a month ago.

Authors United initially formed as an astroturfing group during last year’s bitter negotiation between Amazon and Hachette, so you would think that it would have died when the deal was struck in October 2014, but AU reappeared last month and called for the DoJ to investigate Amazon.

I questioned their motivations at the time, and now I think Rusch has explained it.

Amazon was hitting authors in the pocketbook.

Rusch’s explanation is too long to quote here, but the tl;dr version is that traditionally published authors aren’t making much under the new agency contracts because Amazon was discounting paper book prices to discourage ebook sales, and the authors also weren’t earning anything on print book sales because of those same deep discounts.

The publishers and Amazon are fighting a price war, and traditionally published authors are getting trampled.

Or have I missed something?

images via Flickr

 

Kindle Plus Raspberry Pi Equals Fridge Magnet

We’ve seen ereaders repurposed as weather stations, a netbook, and even a project status board, and now one has made its way to your refrigerator.

Last week a hacker by the name of Peter Vojtek published the details of his latest project. He took a Kindle 4 and a Raspberry Pi and turned them into the DIY equivalent of a Vikaura E-ink picture frame.

https://the-digital-reader.com/2015/01/12/vikauras-e-ink-picture-frames-quietly-picking-backers-kickstarter/

The Kindle is on the same Wifi network, and has been set to watch that same webpage. When a new image is loaded, the Kindle refreshes the browser and displays the image on screen.

That’s a neat way to send secret messages, and if you disable the Kindle’s screensaver and add a sticky magnet to the rear of the Kindle, you have the ultimate geek’s fridge magnet.

P.S. Coincidentally, both the project itself and the project website are hosted on Github. It looks like Vojtek is using HubPress or another platform to host his blog on a repository for software projects.

Github

Penguin Random House Launches LitFlash, a BookBub Competitor

There are approximately eleventy bajillion websites that help you find cheap reads, and if that’s not enough then you might be interested the latest project from Penguin Random House.

Yesterday a reader tipped me to the launch of LitFlash, a new service from PRH which, from what I can see from the outside, is some type of black-box clone of BookBub which will serve up recommendations for Kindle, iBooks, Nook, and other ebook retailers.

Unfortunately, I cannot tell you more. I’ve just signed up for LitFlash, but I am still waiting for an email. According to the about page:

LitFlash is a free daily email that provides you recommendations of low-priced eBooks chosen just for you based on your reading preferences and where you buy your eBooks.

With ten categories to choose from ranging from romance to biography to thrillers, you can get recommendations every day about inexpensive eBooks that readers have loved, including books that may be temporarily discounted only for a very short period of time.

This is potentially a good move for PRH, but it is also a situation where PRH has the deck stacked against them.

LitFlash differs from other recommendation services in that its corporate parent raises a certain degree of suspicion that the recommendations stem from PRH’s desire to sell more PRH titles, and not find you the best deal.

I am subscribed to a half dozen different services like LitFlash, including eReaderIQ, ManyBooks, Fussy Librarian, BookBub, etc. TBH, most of those emails now go directly to my trash folder (I don’t need more recommendations right now) but I stay subscribed because I generally trust the services to serve my best interest as a reader and buyer.

I don’t know that I would feel the same way with LitFLash, and I have Hugh Howey to blame for that. The launch of LitFlash reminded me of something Hugh said a couple months ago when he wrote this about BookBub:

There was a discussion recently in one of my Facebook groups about a possible BookBub for indies. If you don’t know of the service, BookBub has a massive mailing list of readers, and their daily blasts move a TON of titles. Subscribers sign up for their preferred genres and are then notified when books they might enjoy are on sale for cheap. Many an author has hit a bestseller list thanks almost solely to BookBub. The program is so powerful that many consider BookBub to be the best marketing tool available to authors today, if you can snag a spot.

And therein lies the rub. The reason BookBub works is because its users trust them. The works are vetted, and however imperfect this system, it results in a high level of trust and satisfaction. From what I understand, BookBub looks for a minimum number of Amazon reviews, a minimum average ranking, and solid cover art/blurb/etc. For readers, a BookBub promotion serves as a stamp of approval.

Would you trust Random Penguin’s book recommendation service to suggest good, cheap books, and not just ones published by PRH?

Thanks, Karen!

Adobe Digital Editions Now Comes With Free Bonus Bloatware

Adobe isn’t making much money off of its Epub-reading apps, but they’ve found a new way to cash in. A reader has tipped me to the news that Adobe is now bundling Norton Security Scan with the Adobe Digital Editions 4 installer file.

Unsuspecting users who only want to read an ebook are now prompted to install an unnecessary piece of bloatware. And to make matters worse, the checkbox to approve the installation comes pre-checked:

I’ve tested this myself, and I can report that the bloatware is bundled into the same version of Adobe DE 4.0.3 that was released in February. According to user reports, Adobe only added the spam install file some time in early July.

How disappointing.

This kind of nonsense is usually the hallmark of a slimy company desperate to make a buck any way it can. Sourceforge, for example,  has lately been on the receiving end of a lot of grief lately for the way that has been seizing control of software projects hosted on the site and bundling said software into Sourceforge’s own spam-encrusted installers.

What Adobe is now doing with Adobe DE isn’t quite as bad, but it is in the same ballpark.

The Adblocking Revolution Is Not Months Away – It’s Happening Right Now

Apple’s announcement that iOS 9 would include ad-blocking and tracker-blocking as a system level feature is widely expected to shake up the mobile advertising industry when iOS 9 ships later this year, but few seem to realize that the new blocking features are already having an impact.

I was reading a post today on Charles Arthur’s personal blog, The Overspill. Arthur writes for The Guardian and other august publications, but today he wrote on his blog how the ad blocking revolution was going to change everything.

While I generally agree that the impact will be revolutionary, I also think that the revolution has already begun.

I have seen more discussion of the negative impact of adverts on web browsing in the past four months than I had seen in the previous four years. What used to a niche topic discussed on sites where web publishers congregate is now hotly debated across the tech blogosphere.

Digiday, for example, informed us a couple weeks ago that the Washington Post has cut its side loading time by as much as 85%. No one other than a few techies used to care details like about that, but now we’re all talking about it.

You didn’t used to see leading link blogs like Daring Fireball comment favorably when iOS developers analyzed how adverts and trackers create a poor user experience on popular news sites like iMore, nor would you have expected the site in question to admit the truth of the analysis.

Similarly, I don’t know the last time that a major news site like The Verge has been called out for grousing about the mobile browsing experience when in fact that site had admitted two months before that it was one of the reasons why that expereince is so bad.

And who would expect a VC finance site like VentureBeat to show interest in a study that showed that blocking adverts cut network traffic. There’s also increased interest from sites like Digiday and Business Insider on how publishers are fighting back against ad blockers by blocking the blockers or trying to circumvent the blocks, and every month there are new editorials calling ad blocking immoral, or at least a bad move (*).

This, folks, is the revolution in action.

Change is already happening, and I would predict that by the time iOS 9 finally launches it will be the coup de grace, and not the coup d’etat that some are expecting. iOS9 could be the straw that breaks the camel’s back, but I don’t see it as a ticking time bomb.

P.S. Isn’t it curious how so many response can be mapped on to the five stages of grief? Those who protest the coming change are in the first or second stage (anger or denial). Charles Arthur and I, on the other hand, have moved on to the fifth stage (acceptance).

P.P.S. I am also stuck in the third stage (bargaining). Please don’t block my adverts; I promise to keep them from being too annoying. 😉

image by Steven Pisano