Chris Boese's Weblog

Is Amazon trying to monopolize the empowering "citizen media" Publish-On-Demand market?

UPDATE 3/30/08: A commenter below (A.F. Stewart) has left a link for an online petition against Amazon's new policy, and I wanted to make it live and promote it also up here at the top of the post:

Buy buttons have now been disabled, (PublishAmerica and Whiskey Press) and Amazon's policy is to do it to all who don't fall into line.

Voice your protest, sign the petition.

http://www.ipetitions.com/petition/protectPOD

Thanks for the link, A.F.!

Link: Amazon.com Telling POD Publishers - Let BookSurge Print Your Books, or Else....

http://writersweekly.com/the_latest_from_angelahoycom/004597_03272008.html

I am republishing this courageous post from Writer's Weekly in its entirety, in order to help spread the word. That Amazon.com (normally quite supportive of key aspects of the Citizen Media Movement and its most democratizing elements) would attempt such a thing just leaves me speechless.

I hope I'm wrong, and I hope that the negative PR from such a heavy-handed move by a key gatekeeper rebounds badly and forces Amazon to allow the POD books the same rights and privileges as ANY published book with its own ISBN number.

Could you imagine Amazon dictating such a policy to any small university or literary press? What about selected political publishing houses devoted to giving voice to the Thomas Paines of our day?

Amazon made its name by becoming an online equivalent of our Library of Record. Google has now entered that arena, and the competition was necessary, but we can't expect the Barnes & Noble to take up that mantle, and I don't think it could; its interface is too weak and its devoted user base too also-ran. Many of the affected writers are turning to B&N as an alternative, and that could be a good move, if for nothing else, it could help B&N become a better true competitor to Amazon, but B&N has a long way to go.

Could it really be that Amazon is trying to bite the Long Tail that feeds it?

The Internet can be a truly open space only so long as our searches remain honest. Both Amazon and Google have an obligation to citizens of cyberculture not to go all border collie on us and use their power as gate-keepers at their leveraged choke-points of power as oppressive agents of social control against more democratizing forces online.

I hope to follow this issue more in the future, as I learn more about what's happening here, and Amazon's reaction to a public backlash. I should note that key groups particularly affected by this development are FANWRITERS, a massive constituency of fan fiction writers online who develop their skills and corpus of works in specific fandom communities. I have analyzed this social citizen media phenomena in my dissertation, and in the years since, have followed the careers of many successful writers who have "graduated" from fandom audiences to POD, often bringing their own quite sizable audience of fans with them. The effects of this move by Amazon below on the vast worlds of specific fandoms is just chilling.

The good news, which Amazon may not have realized, is that online fandoms are not simply intensely-focused affinity groups. As I also found in my dissertation, they are highly-organized activist organizations. While charities (on the positive side) cable television production houses and networks (on both the positive and negative side) are most often the targets of their organized activism (other sectors of politics and business should take note!), these fandom groups can easily turn on a dime and activate their bases against any target.

If Amazon should step back from this oppressive policy and I somehow miss it, please let me know, so I can also note the change here, when it happens. I have no interest in sharing this outrage in error, nor do I want to lose my faith in Amazon.

Say it ain't so! Please!

Link: Amazon.com Telling POD Publishers - Let BookSurge Print Your Books, or Else....

http://writersweekly.com/the_latest_from_angelahoycom/004597_03272008.html

March 27, 2008

Amazon.com Telling POD Publishers - Let BookSurge Print Your Books, or Else...

BREAKING DEVELOPMENT: We were notified by a PublishAmerica author that her book was available for purchase through Amazon on Tuesday but today the "buy" button for her book on Amazon is gone. We researched some other PublishAmerica books and it appears the "buy" button on Amazon has indeed been removed from the vast majority of their book pages.

PublishAmerica issued a press release today that states, "PublishAmerica will not comply with Amazon's ultimatum, and will not allow that company to dictate who will print PublishAmerica's books, and at what conditions."

~~~~~

Some Print on Demand (POD) publishers are privately screaming "Monopoly!" while others are seething with rage over startling phone conversations they're having with Amazon/BookSurge representatives. Why isn't anybody talking about it openly? Because they're afraid - very, very afraid.

Amazon.com purchased BookSurge, a small POD publisher/printer back in 2005. Amazon also lists and sells titles for the largest POD printer, Lightning Source, which is owned by Ingram (the large book distributor). According to their website, Lightning Source serves more than 4,300 publisher clients and has more than 400,000 titles in their system.

You'd think Amazon's purchase of BookSurge might have made things a bit uncomfortable between the two companies. However, they continued to work together, getting books on demand to Amazon.com's loyal customers. Things appeared to be cruising along just fine, but perhaps not anymore.

Reports have been trickling in from the POD underground that Amazon/BookSurge representatives have been approaching some Lightning Source customers, first by email introduction and then by phone (nobody at BookSurge seems to want to put anything in writing). When Lightning Source customers speak with the BookSurge representative, the reports say, they are basically told they can either have BookSurge start printing their books or the "buy" button on their Amazon.com book pages will be "turned off."

The book information would remain on Amazon, and people could still order the book from resellers (companies that list new and used books in Amazon's Marketplace section), but customers would not be able to buy the book from Amazon directly, nor qualify for the coveted "free shipping" that Amazon offers.

Don't believe it? I didn't believe it either. I am Angela Hoy, the co-owner of POD services company BookLocker.com and publisher of WritersWeekly.com. I am well-known in the industry for my activism performed through WritersWeekly Whispers and Warnings. Over the years, we have helped writers recover tens of thousands of dollars in fees from deadbeat editors and publishers, helped them negotiate better contract terms, assisted writers in obtaining payment after their copyrights have been violated, and even assisted police in collecting evidence to prosecute criminals who have preyed on writers. I am also the author of 11 non-fiction books.

Still doubting the reports could really be true, I emailed an Amazon/BookSurge representative who's been trying to get us to talk to him by phone. John Clifford of Amazon/BookSurge called me at 12:30 p.m. on Wednesday, March 26, 2008.

My first comment was to tell him we heard a rumor that POD publishers who didn't use BookSurge would have the "buy" button on their Amazon.com book pages turned off.

He said, "What? Who told you that? That's not true!"

I told him I'd heard some rumors from the "POD underground."

He said he'd previously tried to talk to my husband, Richard Hoy, the President and CEO of BookLocker. I explained that we had a very bad experience with BookSurge in the past and that he was, naturally, hesitant to do business with them again. (Google the words BookSurge complaint without any quotes to see other customers' comments about them as well.)

He claimed the people who worked for BookSurge back then are probably all gone (but that didn't explain the more recent complaints). He made his sales pitch, talking about percentages and such, and said many POD publishers are resisting their attempts to convert to BookSurge. Mr. Clifford also said BookSurge's aim was to help Amazon customers get their books faster.

What he didn't say was that Lightning Source not only packages books for Amazon customers in boxes that feature an Amazon.com return address label, but also drop-ships those orders directly to Amazon customers at Amazon's request. Hmm...

He stated several times that books not converted to BookSurge's system would be "taken down." Since that wasn't exactly what we'd heard, I asked about books that perhaps weren't selling well, that aren't good candidates for converting to BookSurge (books that would remain for sale through Lightning Source, but would never be converted to BookSurge due to the time/expense involved).

Contrary to what he stated at the very beginning of our conversation, Mr. Clifford finally admitted that books not converted to BookSurge would have the "buy" button turned off on Amazon.com, just as we'd heard from several other POD publishers who had similar conversations with Amazon/BookSurge representatives.

Mr. Clifford said authors of those books could participate in the Amazon.com Advantage Program, meaning they would have to pay Amazon $29.95 per year PLUS 55% of the list price of their book, as well as buy and then send those books to Amazon directly for them to warehouse and ship to customers.

I explained to him that we had more than 1500 books in print and that it would take quite awhile to convert all of those over to BookSurge's system. He said as long as the relationship was "moving forward" that the "buy" button would remain active on our authors' books that had not yet been switched.

Another comment Mr. Clifford made was that their eventual desire is to have no books from other POD publishers available on Amazon.com.

WHAT ARE THEY THINKING?!

I have to wonder if Jeff Bezos is even aware of what is going on within his organization. Here is Amazon's Vision Statement, taken directly from their website:

"Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online."

What it doesn't say is, "Our customers can buy any print on demand book they might want online...as long as we also get paid to print it."

Nobody likes being backed into a corner, and saying "do this or else" naturally breeds angry rejection and hostility. If we did agree to sign the contract, pulling and transferring files to Amazon/Booksurge would take an enormous amount of time and money. From the POD publishers we've talked to, and from our own experience at BookLocker, we could all be looking at a dire and immediate threat of revenue cuts if we refuse to sign the Amazon/BookSurge contract. Most importantly, there could be an outcry from and potential financial hardship on the authors, who are completely innocent in all of this.

In BookLocker's opinion, and the opinion of all the fellow Lightning Source customers we talked to, the Amazon/BookSurge proposal does not appear attractive at all (yes, we obtained the contract and the file submission specifications). Amazon/BookSurge would make money two ways on Amazon.com sales - first the fee for printing the books, and then 48% of the list price of each sale through Amazon.com. Lightning Source allows its customers to set their own discount rate for Amazon and other retail sales, and does not force POD publishers or authors to pay "48%."

Furthermore, it could take the larger POD publishers months to submit their book files to Amazon/BookSurge, at a considerable cost and number of man-hours. This makes the deal even less attractive. Finally, while the initial list of books submitted by POD publishers could be submitted to Amazon/BookSurge for free, the contract states future books would cost $50 each to process. The cost for individual authors to publish through BookSurge is considerably more, with an average publishing package cost of more than $1,000.

Since Amazon/BookSurge does not offer Ingram distribution (Ingram distribution is considered imperative in the industry for bookstore sales), any company that accepts the Amazon/BookSurge deal, who desires to keep offering Ingram distribution, may need to maintain two copies of the book files. Since the Amazon/BookSurge current specs don't match the Lightning Source specs, future book files, both interior and cover, may need to be formatted separately. So, they would have to pay double the setup fees and might have to do double the formatting work as well...or pay designers to do double the formatting work.

Likewise, self-published authors who believe they must have Ingram Distribution AND an active "buy" button on Amazon to be successful may need to pay double the setup fees (to a POD publisher AND Amazon/BookSurge), and also may need to create two separate sets of formatted files.

In the event where two versions of a book might be available, Mr. Clifford said the Amazon/BookSurge version of the POD book would trump (override) the version offered by Lightning Source on Amazon.com.

AMAZON WAS BUILT BY BOOKS....That Were Written By AUTHORS

When authors get wind of this, we believe they are going to be livid. Authors are also readers. They love books. We suspect they buy from Amazon in droves. I, myself, have been an Amazon junkie for years, not only heavily promoting Amazon.com in my non-fiction books for writers and on our very popular website, WritersWeekly.com, but also listing my own books for sale there, ordering other authors' books, DVDs and numerous other products as well. I pulled up our Amazon customer account and looked at our receipts. We've spent $1508.81 at Amazon.com in the past six months. Multiply that by the number of authors this will affect...authors who, like me, have a multitude of websites to choose from when doing their shopping online.

In addition, authors participate in the Amazon experience, via blogs on the website, by posting reviews about other books, and more, activities that help to continually make Amazon bigger and better. Authors are a loyal bunch! For years, they've been faithfully sending their readers to Amazon.com, again and again, even when they earned lower royalties for doing so.

It's not inconceivable to think that this group, if shoved against a wall like this, won't simply pledge their allegiance elsewhere. Let's face it, BarnesandNoble.com offers free shipping on orders of $25 or more, too. Authors can change the links to their book pages on their websites, in their ezines and press releases, and even in their email signatures to their book's page at BarnesandNoble.com. Authors can spend their own money elsewhere as well (as I plan to do). I imagine BarnesandNoble.com will be very happy to process the extra book sales that could result from all of this.

Amazon.com might also upset countless companies that have Amazon Affiliate bookstores on their websites (many authors have these, too!). If Amazon/BookSurge were to follow through with turning off the "buy" buttons for thousands of POD titles, customers following those links from other websites could be confused and annoyed. After clicking on a link, they would find no easy way to purchase the book directly from Amazon, and no way to obtain free shipping on that book, even if they're willing to buy more products to meet the $25 free shipping threshold. One would think Amazon must know the free shipping strategy works to upsell customers on additional products. That's why they offer it. Without it, these customers could have no incentive to buy more products because the product they surfed in to buy does not qualify.

One has to wonder if traditional publishers will be next? Will Amazon eventually require all books sold through Amazon.com to be printed by BookSurge?

Let's all hope and pray this situation is one huge, misguided idea from some mid-level management person and not corporate policy being dictated from the office of Jeff Bezos.

What can you do? Let Amazon know what you think about this "offer" by Amazon/BookSurge.

The names of their Officers and Directors are here: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-govManage

Amazon's Investor Relations Team email address appears near the bottom of this page: http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-faq

Their address is:

Amazon.com, Inc.
P.O. Box 81226
Seattle, WA 98108-1226

Next, tell your author friends, your book buyers, your website visitors, your ezine subscribers and everyone else about this situation. Amazon.com was built on books. Books are written by authors. Unfortunately, it appears authors may ultimately be the innocent pawns in this power struggle.

~~~~~

[...]

Angela Hoy is the publisher of WritersWeekly.com, which offers free job listings and paying markets for freelance writers every Wednesday. Subscribe at WritersWeekly.com. She is also the publisher at BookLocker, which offers full-service, affordable print on demand publishing and free ebook publishing.

~~PERSONAL POSTSCRIPT TO AUTHORS FROM ANGELA~~

There is no reason to panic. We are not aware of any cases yet where the "buy" button has been removed. It is possible, after recognizing everyone's concerns, that Amazon might change its mind.

If they do turn off the "buy" buttons, though, not having an active "buy" button on Amazon.com is not the end of the world.

After selling books for eight years, it has been our experience that "chance purchases" of self-published books on Amazon.com are not the norm. Authors slap books up on Amazon.com all the time, don't market them, and sell zero copies. For most self-published authors, sales are almost always author-driven, meaning the bookstore link you use in your marketing efforts is what's driving your sales, not just simply having your book listed on Amazon.com.

We know from experience that the customer is going to buy your book from where you tell them to buy your book. If you want your customers to qualify for free shipping, you can send them to BarnesandNoble.com, and tell them their order might qualify for free shipping (many people don't know BarnesandNoble.com offers free shipping!).

High Noon at the DC Corral

Link: U.S. Supreme Court seems poised to strike down D.C. handgun ban - Los Angeles Times.

It looks like the conservative supreme court is going to turn handguns loose into that wild west that is the rest of the District of Columbia.

The federal government sits deeply embedded in a massive slum (perhaps not as bad now as it once was), but the Supremes are ready to operate under the assumption that any person you happen to be walking up to is armed. Kinda makes you think they aren't very interested in self-preservation, doesn't it?

What's next? Will D.C. go the way of Florida, where folks are allowed to pack heat in shopping malls, schools, public buildings? That should certainly be interesting.

On one hand, you have all these oppressive encroachments on civil liberties with terrorist watch lists, shakedowns, pat-downs, no-go zones around VIPs and quasi-VIPs, which essentially make the Federal part of D.C. the equivalent of the Baghdad Green Zone for rich people.

And once the Supreme Court gets through with the Second Amendment, the rest of D.C. will also start to resemble the non-Green Zone part of Baghdad as well!

http://www.latimes.com/news/nationworld/nation/la-na-scotus19mar19,0,2685078.story

From the Los Angeles Times

U.S. Supreme Court seems poised to strike down D.C. handgun ban

Several justices indicate they believe the 2nd Amendment of the Constitution protects individual rights.

           By David G. Savage
           Los Angeles Times Staff Writer

        10:48 AM PDT, March 18, 2008

WASHINGTON — The Supreme Court justices, hearing a historic argument on the meaning of the 2nd Amendment, signaled they are likely to strike down a handgun ban in the District of Columbia and rule that homeowners have a right to keep a gun for self-defense.

But if the oral arguments are any guide, the outcome will not be unanimous. Several justices said they believed the 2nd Amendment was intended to protect the state's right to maintain a "well-regulated militia," not to give gun rights to individuals.

Justice Anthony M. Kennedy, who is the swing vote in close cases, said he believed the 2nd Amendment did more than bolster the state militia. "In my view, there is a general right to bear arms" that goes beyond serving in the militia, Kennedy said.

Most Americans believe the 2nd Amendment protects the right of law-abiding persons to "keep and bear arms." But the legal meaning of this provision remains in doubt. The high court has never invoked this right to strike down a gun law nor has it ruled that it protects a personal right to own a gun.

Justice Antonin Scalia, like Kennedy, described the 2nd Amendment as protecting individual guns. Justice Clarence Thomas is likely to join with them. And Chief Justice John G. Roberts Jr. and Justice Samuel A. Alito Jr. said they believed the city council in Washington, D.C., went too far by prohibiting homeowners from having handguns.

"Why is that a reasonable regulation?" Roberts asked the lawyer defending the city's law.

Walter Dellinger, arguing for the city, said the framers of the Constitution were concerned about protecting the right of the people to defend the state or the community. The 2nd Amendment creates "a right to participate in the common defense," he said.

The amendment says: "A well-regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed."

Dellinger also argued that the phrase "bear arms" was a military term. He said the Washington law should be upheld because it allows homeowners to have a disassembled rifle or shotgun at home, even while it bans small handguns.

It was clear several justices agreed with this view.

Justice John Paul Stevens noted that Congress and all but two states had focused the "right to keep and bear arms" on the militia, not on personal self-defense. It was seen "as the right to keep and bear arms for the common defense," he said.

But the court's liberal bloc did not appear to have the votes to uphold the law.

[...]

               

Jury backs Blackboard Inc. patent claim against Desire2Learn

This is killing me just so badly, I had to post on it. Those who know me well know the reason why the entire saga sticks my my craw, beyond the reasons cited in the article below. I'm hoping for a drawn-out appeal process, perhaps all the way to Supreme Court, with a lot of mainstream media attention.

Here's a bit from the Chronicle of Higher Ed (I can't believe the content is outside their oppressive firewall... that's an odd change)

Link: Blackboard Inc. Is Awarded Payment From Competitor in Patent Case - Chronicle.com.

Monday, February 25, 2008

Blackboard Inc. Is Awarded Payment From Competitor in Patent Case

By KATHERINE MANGAN

Austin, Tex.

A federal jury in Texas awarded Blackboard Inc. $3.1-million on Friday, saying that a smaller Canadian competitor, Desire2Learn Inc., had infringed its patent for a system of delivering course materials online. The jury also found that Desire2Learn had not shown clear and convincing evidence that Blackboard's patent was invalid.

Blackboard's general counsel, Matthew Small, said the verdict validated the company's assertion, which has been challenged by many higher-education technology experts, that its system was unique when the U.S. Patent and Trademark Office granted Blackboard the patent in 2006. The office agreed last year to take another look at the patent after Desire2Learn and others challenged its validity. That review is still pending.

"They won this round, but the battle is not over by any stretch of the imagination," John Baker, president and chief executive of Desire2Learn, said in an interview Friday. "We'll continue to fight and hopefully remove from the educational community this very dark cloud."

The company is considering several options, including appealing the verdict, continuing to challenge the patent at the federal level, and modifying its software so it does not infringe Blackboard's patent.

Mr. Baker said he was "shocked" when the jury announced its decision after deliberating for nine hours over two days in the U.S. District Court in Lufkin. The trial lasted two weeks.

[...]

Blackboard, which is based in Washington, sued the smaller, Canadian-based company in 2006, saying Desire2Learn had infringed its patent and taken away customers that should have been Blackboard's (The Chronicle, Aug. 2, 2006). The Canadian company has been one of Blackboard's primary competitors since Blackboard took over another rival, WebCT, in 2006.

'Prior Art' Dispute

Desire2Learn, which has its headquarters in Kitchener, Ontario, argued that Blackboard's patent was invalid and should never have been granted in the first place. Lawyers for the company said that Blackboard officials were aware of similar technology, or what's known as "prior art," that existed before it filed its patent application, and that the company had failed to divulge that information to the patent office.

The judge in the case, Ron Clark, rejected that argument.

Mr. Small said Blackboard never claimed to have invented the course-management system. What the company did invent, he said, is "a course-management system where a single user with a single log-on could have multiple roles across multiple classes." For instance, a person who was a student in one course and a teaching assistant in another could log on once and access all of his course materials.

"It really was transformative for the industry," Mr. Small said. "We knew we were the first doing it at the time, and that's why we applied for the patent. People look at the technology now and say that's obvious, but at the time, we were the first, and we're very proud of it."

[...]

"This is a signal event in educational technology," said Alfred H. Essa, associate vice chancellor and deputy chief information officer for Minnesota State Colleges and Universities. "It means that the big boys are playing for keeps and will use their patent portfolio at any cost to crush and deter new entrants. As a community, it will take us a long time to recover from this mess."

[...]

Eben Moglen is founding director and chairman of the Software Freedom Law Center, an advocacy group for open-source software that has challenged Blackboard's patent. Mr. Moglen, who is also a professor of law at Columbia University, said there is plenty of evidence, presented both in the trial, and to the federal patent office, of similar technology that existed before Blackboard's patent was issued. He added that his group plans to continue fighting to invalidate Blackboard's patent.

"We see this attempt to strangle or force licensing of Desire2Learn on the basis of an invalid patent as clear evidence that Blackboard cannot be trusted," Mr. Moglen said.

[...]

But Mr. Small, the Blackboard lawyer, said the "highly educated jury" included two people with master's degrees in information systems, two others who were academic-computing administrators, and the city's postmaster."

Their decision left many in the industry wondering just how much power Blackboard now wields.

Peter A. Schilling, director of information technology at Amherst College, said colleges may decide it's too risky to use any course-management system other than Blackboard's. The patent, he said, is so broadly written that professors may be afraid to even use wikis or blogs.

Blackboard's president, Michael L. Chasen, testified during the trial that his company will not sue colleges that use open-source software to create their own online learning systems. Mr. Small repeated that promise during the trial and pointed out that his company signed a legally binding pledge promising that it would not take action against colleges that use free, open-source software.

[...]

It's that bold paragraph above (emphasis mine) that chaps my hide so completely. As I was reading all the court materials and blog postings about this, I found myself thinking the exact same thing as Peter Schilling above.

It is just chilling. I really don't trust what Blackboard says in the paragraph after that, simply because of the way this patent was set up, and now, so oppressively enforced.

Backstory: at one time I was working on an interface design (very different in its foundational model from Blackboard's, partly because I was so dissatisfied with the Blackboard products), an interface for which I also entertained the notion of submitting for a patent.

I still have those materials and that model, which is why I was looking at the Blackboard patent claims so closely, and while I still need to read more of the fine print, I have to say, if what they have is their criteria for a patent, there are quite a lot of us who worked with educational and groupware software interfaces who could have patented our work 15 years ago or more. What a scam!

I'm not quite sure why the prior art claim was dismissed so easily. I expect that to come back up again. I hope there will be more to come, and that this ridiculous decision will not be left to stand.