Indie Bookstore Fight Back against Amazon eBooks Monopoly

March 14, 2013

Amazon seems to be at the top of its game. From the latest electronics, clothing and even school supplies they seem to have their hand in everything and be doing very well. However, not everyone is a fan of the online giant. According to the Paid Content article “Indie Bookstore Sue Amazon, Nig-6 Publishers for Using DRM to Create Monopoly on eBooks” three independent bookstores are suing Amazon and the big-six partners based on their DRM (digital rights management). The three independent bookstores involved are Manhattan-based Posman Books, Book House of Stuyvesant Plaza and Fiction Addiction of Greenville, South Carolina.

“The indies, represented by Los Angeles antitrust firm Blecher & Collins, say publisher contracts calling for the use of this DRM, which like most forms of DRM prohibits readers from copying eBooks or reading them on non-authorized devices, restrain eBook sales and that Amazon “has unlawfully monopolized or attempted to monopolize the market for eBooks in the United States.”

According to market estimates Amazon currently is the dominant leader in the eBook market with over 60 percent of uses using Amazon’s Kindle e-readers. Other well-known companies such as Barnes and Noble and even the mighty Apple are involved in the e-book market but represent only a small amount and don’t add up to much competition. The big-six publishers have contracts with Amazon that allow Amazon’s DRM eBooks but do not have any contracts or deals set up with independent bookstores. The plaintiffs are seeking an injunction that prohibits Amazon and the big six from publishing or selling eBooks that are app specific DRMs and to allow independent brick and mortar bookstores to directly sell open source eBooks published by the big six. It’s easy to see that though the big six are mentioned that the plaintiffs are clearly taking the fight straight to the front door of Amazon. Looks like digital content is alive and the battle lines have been drawn.

April Holmes, March 14, 2013

Sponsored by ArnoldIT.com, developer of Augmentext

Written by Stephen E. Arnold · Filed Under ECommerce, News, Publishing

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.