1. E-books and consumer models; identifying consumer licence models Lynette Owen, Copyright Director, Pearson Education Ltd, United Kingdom Vilnius May 12 th 2010

2. What has happened with e-books in the Anglophone countries? (1) We have moved to electronic platforms rather earlier than other markets There have been marked differences in progress and policy in different sectors of the publishing industry: educational/academic/professional publishing on one side and consumer publishing on the other

3. What has happened with e-books in the Anglophone countries ? (2) Academic and professional publishers “went electronic” in the early 1990s – first on CD-ROM, then online They have an advantage in that they normally acquire copyright including electronic rights from the author Legal publishers offered large searchable databases Customer demand required academic publishers to supply journals online; they then progressed to producing e-books

4. E-book models in the academic sector (1) Publisher digitises via digital service provider and can then supply direct from own website at prices set by publisher; e- books carry VAT in the United Kingdom Users normally access via desktop or laptop rather than via dedicated e-reader Authors usually receive agreed contractual royalty on net receipts from electronic sales

5. E-book models in the academic sector (2) Publishers make e-books available via library aggregators who package “collections” in key subject areas and supply to academic and corporate libraries on subscription basis Users do not pay as individuals, but can access electronic collections 24x7 Publishers receive pro-rata share of subscription income reflecting proportion of their content Author receives pro-rata share of publisher’s income

6. E-book models in the consumer sector (1) Publishers started much later- impetus has come from dedicated e-book readers and smartphones as users do not want to read on desktops or laptops Early e-readers failed, but new models are commanding larger market in last 3 years – Sony Reader, Amazon Kindle, Barnes & Noble Nook, and most recently Apple iPad

7. E-book models in the consumer sector (2) Publishers have had to check if they control e- book rights under author contract – some conflicts with literary agents Publishers have digitised via digital warehouse providers Some supply direct from own website at price equivalent to paperback price Most supply through third party retailers e.g. Amazon, Barnes & Noble, Apple iBookstore

8. E-book readers: pros and cons Sony Reader and Amazon Kindle both use eInk technology and are clear to read, but have no colour facility Apple iPad has colour, but has LCD screen so can legibility can be difficult in bright light; also requires two hands to hold! E-books for Sony reader have to be downloaded via computer; Kindle has wifi facility Apps facilitate reading on a smartphone

9. Some dilemmas for consumer publishers Some publishers have delayed release of e-book format for key trade titles to avoid cannibalising hardback sales Publishers now object to retailers setting e-book prices and have sought to move to “agency” model where they set e-book prices themselves Authors are pushing for larger share of e-book revenue Some authors have bypassed their print publishers and made e-book deals direct, e.g. with Rosetta Books

10. Other issues in consumer publishing(1) The power of Amazon e.g. remote deletion of titles from Kindle users Limitations on what users can do – digital rights management (DRM) usually applied to prevent unauthorised file-sharing perceived as an obstacle Users want to be able to shift e-books to other devices they own (possible via Kindle app for iPhone)

11. Other issues in consumer publishing (2) Downloads of audiobooks via companies like Audible Do text-to-speech facilities on the Kindle and iPad conflict with audio rights? Google editions – competition for Amazon and Apple? Can you ever really “own” an e-book or just rent access to it? – NB cloud computing

12. Perceived problems by users E-book pricing Different devices, different e-book platforms DRM and sharing, platform shifting