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Offline Book "Lending" Costs US Publishers Nearly $1 Trillion

An anonymous reader writes with this excerpt from a tongue-in-cheek blog post which puts publisher worries about ebook piracy into perspective: "Hot on the heels of the story in Publisher's Weekly that 'publishers could be losing out on as much $3 billion to online book piracy' comes a sudden realization of a much larger threat to the viability of the book industry. Apparently, over 2 billion books were 'loaned' last year by a cabal of organizations found in nearly every American city and town. Using the same advanced projective mathematics used in the study cited by Publishers Weekly, Go To Hellman has computed that publishers could be losing sales opportunities totaling over $100 billion per year, losses which extend back to at least the year 2000. ... From what we've been able to piece together, the book 'lending' takes place in 'libraries.' On entering one of these dens, patrons may view a dazzling array of books, periodicals, even CDs and DVDs, all available to anyone willing to disclose valuable personal information in exchange for a 'card.' But there is an ominous silence pervading these ersatz sanctuaries, enforced by the stern demeanor of staff and the glares of other patrons. Although there's no admission charge and it doesn't cost anything to borrow a book, there's always the threat of an onerous overdue bill for the hapless borrower who forgets to continue the cycle of not paying for copyrighted material."

35 of 494 comments (clear)

  1. Dammit... by Anonymous Coward · · Score: 5, Insightful

    Don't give them any ideas.

    The copyright circus is stupid enough already.

    1. Re:Dammit... by mrcaseyj · · Score: 5, Interesting

      In related news it has been discovered that the contents of textbooks, which often sell for $200 or more, are largely made up of information and ideas developed by previous authors. The previous textbook authors are starting to complain that they aren't getting any royalties from new textbooks and are now calling new textbook authors "seagoing murdering thieves" (pirates). Others are wondering why books mostly inspired by previous works, have more than a hundred year copyright, when the Constitution only authorizes copyrights for limited times, not a trillion years.

    2. Re:Dammit... by jc42 · · Score: 5, Insightful

      Don't give them any ideas.
      The copyright circus is stupid enough already.

      Too late. The publishing industry has been thinking and talking along this line for a long time already. There's a conventional statistic among publishers, to the effect that every book sold is read by four people. This is usually mentioned in a context that makes it clear that there's a problem. Often they don't bother mentioning how this multi-person readership happens, but it doesn't take much questioning to learn: libraries. And the point is always that the publishers are "losing" 3/4 of their potential sales to the multi-reader "problem".

      One of the reasons that a lot of publishers have developed an interest in e-books is that they see it as a way of limiting readership. After all, people won't much loan out their e-readers, and so far, few libraries have experimented with supplying electronic copies of books to their members.

      (I wonder why this is? Are they such Luddites? Or are they just ignorant of the technology? Or perhaps they don't see a way to collect overdue fines. ;-)

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    3. Re:Dammit... by qengho · · Score: 5, Insightful

      If I lend a book to ten people, then copyright law considers that fine. If I put something on a P2P network and two people download it, I get a statutory fine of several thousand dollars (well, I would if I lived in the USA). There seems to be some disconnect there.

      Not defending the publishing industry, but there is a material difference: your copy lent to ten people remains a single copy and returns to you (you hope), but the one you uploaded to two others has become three copies. Still, I don't doubt the publishing industry is inflating the losses.

    4. Re:Dammit... by Daniel+Dvorkin · · Score: 4, Insightful

      (I wonder why this is? Are they such Luddites? Or are they just ignorant of the technology? Or perhaps they don't see a way to collect overdue fines. ;-)

      Actually, I think it's because most new e-books come with EULAs which specifically prohibit lending. And they have the DRM to back it up.

      Publishers fought like hell against the public lending library concept when it first started becoming widespread ~150 years ago. Fortunately for everyone, they lost the battle. Now they see a chance to fight it again, and in the current IP-philic legal environment, they have a good chance of winning.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    5. Re:Dammit... by Chyeld · · Score: 4, Insightful

      May not screw too much with the recording (audio and video) companies other than pointing out the ridiculousness of their monetary damages claims. But it really should be shoved in the face, and hard, of the video game industry and the bunch of whining assholes who keep pushing DRM on physically sold games under the banner of preventing piracy but actually just to fuck over people who peruse the used game market.

      Seriously, name one game released since 2000 (and sold more than 10 copies) where the copy protection has prevented it from being pirated. One.

    6. Re:Dammit... by Bill_the_Engineer · · Score: 5, Insightful

      If I lend a book to ten people, then copyright law considers that fine. If I put something on a P2P network and two people download it, I get a statutory fine of several thousand dollars (well, I would if I lived in the USA). There seems to be some disconnect there.

      The disconnect is in your comparison. When you lend a book, you don't expect it to be copied and redistributed. When you put something on a P2P network, you expect it to be copied and redistributed, because having copies distributed throughout the P2P increases efficiency. So while you may only observe that two people downloaded your copy, you can't tell how many people downloaded copies originating from those 2 downloads...

      Now your comparison makes sense if you were distributing source material that required some DRM mechanism to read, and there was some DRM server that only allowed a certain number of copies to be "checked out" at a time. Checked out in this case means having the ability to read and/or use. I've used electronic libraries that had this kind of DRM in place.

      However, I do not think you intended to promote the use of DRM in your posting.

      The other problem with your comparison is that libraries have permission to lend books, while nobody gave you permission to publish a book in digital form on the P2P network.

      --
      These comments are my own and do not necessarily reflect the views or opinions of my employer or colleagues...
    7. Re:Dammit... by jc42 · · Score: 4, Interesting

      Funny thing; I just finished writing another reply in which I mentioned the publishers' opposition to public libraries in the early 1800s. So now I suppose that one or the other (or both) of us will be modded "redundant". ;-)

      Maybe it's time to also bring up the very early history of copyright, which was invented primarily to limit the publication of bibles and other religious texts to only "approved" publishers. The purpose wasn't monetary; it was to prevent publication of documents opposed by the officially-approved religion, by limiting the publishing to officially-approved publishers. It was also to control the distribution, so that only members of the approved priesthood could access the texts. The rest of the population was intentionally kept illiterate, so that the priesthood could be the only religious authorities.

      So things could be worse. The "Intellectual Property" people could be actively campaigning against literacy. They could be pushing for laws banning access by "the masses" to their products. They could get laws passed making it illegal to teach your children to read. People like them have done such things in the past. Such things were among the real reasons that the legal concept of copyright was originally developed.

      --
      Those who do study history are doomed to stand helplessly by while everyone else repeats it.
    8. Re:Dammit... by Mr.+Slippery · · Score: 4, Insightful

      The other problem with your comparison is that libraries have permission to lend books

      Since when does anyone need "permission" to lend out an item that they own? I lend books to people all the time. I neither have, nor require, permission to do so.

      --
      Tom Swiss | the infamous tms | my blog
      You cannot wash away blood with blood
    9. Re:Dammit... by steelfood · · Score: 4, Insightful

      The other problem with your comparison is that libraries have permission to lend books

      Yeah, I was up to you until that point. It's the other way around. Nobody "gives" people permission to lend or even copy books. Instead, the government grants authors and "content creators" the ability to restrict this right of copy for a limited time. That's copyright.

      The right to use information is among the inalienable right granted by our Creator (whomever this might be), the right of liberty. It is enshrined in the first amendment, the right to free speech, because the written word is a manifestation of speech.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    10. Re:Dammit... by nine-times · · Score: 4, Insightful

      No, it's not the same. The way I see it, you have a good point, but TheRaven64 has a good point too. There is some kind of disconnect going on.

      The concept of "copyrights" makes perfect sense in a world post-printing-press and pre-Internet. Before the printing press, copyrights were completely unnecessary. After the Internet, copyrights become problematic-- not nonsensical, just problematic. These works are constantly being "copied" in that they're cached, stored on several devices, backed up, etc. The idea of "selling a copy" that made so much sense 20 years ago doesn't work anymore. Now we have to sell "licenses", and that gets pretty hairy.

      The point I try to make in these discussions is that it's just not as simple as "copyright is good" or "copyright is evil". Copyright was an invention, not an innate right. It was invented during a specific historical period in the hopes of achieving certain goals. However, inventions sometimes need to be updated and sometimes go entirely obsolete. We don't calculate using abacuses anymore. We don't start our cars with cranks. Somehow or another, the invention of the "copyright" needs to be updated in a way that achieves its intended goals, given the realities of our current historical period.

  2. I've been saying this for years! by bbbaldie · · Score: 5, Insightful

    Libraries are nothing but effete businesses designed to rip off the publishing industry and fill innocent victims' minds with confusing, dangerous propaganda! A. Hitler, spokesman, RIAA

  3. In other news... by srussia · · Score: 5, Funny

    Sunlight costs lightbulb makers nearly 100 bazillion dollars!

    --
    Set your phasers on "funky"!
    1. Re:In other news... by Shakrai · · Score: 5, Funny

      Sunlight costs lightbulb makers nearly 100 bazillion dollars!

      Only if you invest for the short term. Personally, I invest for the long term. I'm quite sure that my lightbulb investments will prove profitable in 5,000,000,000 years.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
  4. As a mathematician by Anonymous Coward · · Score: 5, Insightful

    I am irked by the phrase "advanced projective mathematics." This to me is a red flag warning me of some business school BS coming up.

    1. Re:As a mathematician by schon · · Score: 4, Funny

      I am irked by the phrase "advanced projective mathematics." This to me is a red flag warning me of some business school BS coming up.

      Pff- you elitist ivory tower eggheads and your fancy-schmancy degrees think you know everything! If you had any sort of street-smarts, you'd realize that there's a reason people with MBAs run the world!

      Now if you'll excuse me, I'm late for my MBA meeting - we've decided to solve the financial crisis by making the leaf the standard unit of currency - everybody will be rich beyond their wildest dreams!

  5. And they keep secrets! by maxwells_deamon · · Score: 5, Insightful

    When the authorities have requested copies of patrons borrowing records, the libraries almost always refuse to provide it without a search warrant!

    1. Re:And they keep secrets! by 0123456 · · Score: 4, Informative

      When the authorities have requested copies of patrons borrowing records, the libraries almost always refuse to provide it without a search warrant!

      Actually I believe you'll find that libraries now tend to delete all records after the books are returned, so a search warrant is useless. Hence the publishers can't even find out who the evil 'borrowers' might be.

  6. Make eBooks Cheaper! by omnichad · · Score: 4, Interesting

    If I could "own" (even with DRM) a book for $2.50, I would never bother making a trip to a library. Even at lower prices, publishers could increase their profits substantially by bypassing the libraries.

  7. Hackers by nacturation · · Score: 4, Funny

    Notorious hacker group "The Librarians" thumbed their collective noses today at the intellectual property industry as they investigated new ways to channel IP into the hands of teenagers.

    "I got this great new bag today," said one student, "and realized I needed a few novels to put in it." [Editor's note: we believe the term "bag" is street for a memory storage device.]

    One self-proclaimed member of this criminal organization stated "The biggest challenge with kids today is getting access to reading material. Many come from poorer families and depend on the free availability of reading material to supplement their school-provided education." She continued, "That's why today we're announcing a reading competition, with the winner awarded a really wonderful bag to store their materials in."

    When pressed for clarification, this member stated "Of course all the reading materials would be provided for free. That is the whole purpose of what we do." Upon further research, it is believed that local and federal funds are being diverted for these activities.

    Organizations representing intellectual property owners did not immediately answer calls. [Editor's note: we let the phone ring once, then hang up. If they can't answer their calls in less than one ring, it's not immediate enough for us.]

    --
    Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
  8. oh, when will the 'socialism' end?? by AB_Rhialto · · Score: 5, Interesting

    While funny, the point of the article is quite saddening. People have been involved in 'socialist' activities since before we were human and only just recently, has it become something of a curse to help one another out (sharing) at the expense of a Corporation potentially losing a sale opportunity.

    Don't get me wrong, Corps have to make money, but there has been an amazing full court press of propaganda that has twisted the case for helping and sharing the burden to some degree as socialism or communism (and for the Republicans out there, I'll add Fascism, since it ends in an ism).

    We won't even talk about all the infrastructure that government puts in place because, well, that is a form of socialism too, and its far better to little to no government so everyone can look after themselves.

    I wonder who would be best able to take care of themselves in such a scenario, individual voters and their families or large corporations (since they have most of the benefits of being a 'person' but none of the responsibilities)?

  9. this is what is wrong: by circletimessquare · · Score: 4, Insightful

    His adventures in books, plays, television shows and movies continue to pay dividends for the heirs of his creator, Arthur Conan Doyle. Holmes's latest appearance on film, directed by Guy Ritchie, has sold more than $311 million in tickets worldwide, and on Sunday won a Golden Globe award for its star, Robert Downey Jr.

    At his age, Holmes would logically seem to have entered the public domain. But not only is the character still under copyright in the United States, for nearly 80 years he has also been caught in a web of ownership issues so tangled that Professor Moriarty wouldn't have wished them upon him.

    http://www.nytimes.com/2010/01/19/books/19sherlock.html

    dear all creators:

    no, it does not make any fucking sense that your grandchildren should profit from a story you wrote, a song you sang, a movie you directed, whatever

    it simply does NOT make sense. it is an intellectually and philosophically corrupt concept

    intelletual property law only deserves to be disrespected, fought, and subverted. intellectual property law is a parasitical drain on our culture. intellectual property law must be destroyed. it is not of any benefit to anyone except certain entrenched well-connected, well-lawyered interests

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  10. Re:And the PORN!!! by __aaclcg7560 · · Score: 5, Funny

    That's nothing. The Economist once had a cover with two copulating camels (the female didn't look to happy). For a brief moment in history, economists figured out that 1 + 1 = 3. If you don't know where the extra one came from, you haven't spent enough time in the "medical journal" section.

  11. Cause and Effect by DarKnyht · · Score: 4, Interesting

    This is what happens when a government runs the value of their money to the ground by over-spending/borrowing. The purchasing power of the average family goes down and they start making tough choices about where their money goes. Things like overpriced cable television, unnecessary luxury trips, entertainment purchases (books, movies, music), and other non-essential items don't get purchased. Instead of the Corporations facing this reality and coming up with quality products that have value, they instead blame 'piracy' for their woes.

    Sorry Corporations, food and gas to get to work is more important than a $30 Blue-Ray movie, especially when I is delivered a few weeks later at my door via my Netflix queue. Used video games are more attractive (even bargain bin ones) than $60 for the latest greatest, and if I am desperate I can rent for $3 at Hollywood Video. Radio is free and generally will play something worth listening to, so that song better be really good for me to spend even $0.99 on it (Ke$ha need not apply).

    These days I use the library, netflix, rentals, borrowing, ebay, or any other legal means to save a buck on entertainment these days. Even if that means just playing cards with the family or going to the park.

    --
    Voting them all out of office, now that's change I can believe in.
  12. Re:Excellent satire by Grishnakh · · Score: 5, Insightful

    The only problem is that it isn't completely accurate. It portrays libraries as quiet places where people will glare at you if you make too much noise. In the past, that used to be true, but not any more, at least here in Arizona. Now, kids run wild, and people chitchat on their cellphones at full volume in library common areas, and librarians don't do anything about it because it's become futile.

    It'd be nice to live in a civilized city where people really were quiet in libraries.

  13. You think this is a joke? by phliar · · Score: 5, Informative
    Here's Pat Schroeder, then the incoming president of the Association of American Publishers, in the Washington Post of Feb 7, 2001. She was interviewed at the meeting of the AAP, hence the "brie-eating mortgage holders".

    "We," says Schroeder, "have a very serious issue with librarians. ... Technology people never gave their stuff away, but now folks are saying, 'You mean the New England Journal of Medicine is charging people?' ... Markets are limited. One library buys one of their journals," she explains, pointing to the Brie eaters. "They give it to other libraries. They'll give it to others." If everyone gets a free copy, she says, the publisher and the writer and others involved in making the book go unpaid. "These people aren't rich," she says of those in the room. "They have mortgages."

    These are the people arguing against making publicly funded research publicly available. Here's the full article: Pat Schroeder's New Chapter.

    --
    Unlimited growth == Cancer.
  14. Re:And then by Devout_IPUite · · Score: 4, Funny

    You wouldn't steal a car! You wouldn't steal a DVD! Don't steal books either!

  15. The First Book Is Free. by TheWizardTim · · Score: 4, Funny

    When I was growing up, my family did not have a lot of money. Almost all the books I read were borrowed from a library. As I got older, my mom and dad moved in to better jobs, and some of my books were purchased. By the time I was in high school and college, the only time I went to the library was to do research for school papers.

    Now that I make good money, I never to go the library. I buy all my books (from independent book stores if I can).

    Like any good drug dealer they need to keep the first "hit" free.

    1. Re:The First Book Is Free. by nine-times · · Score: 4, Insightful

      To me, this raises a more interesting issue: where would you be if you didn't have the library when you were younger? How would it have shaped your life to not-have access to books at a young age? Maybe you wouldn't be able to afford them now.

      It's in society's best interest to make books and educational materials as available as possible. That's why we have libraries in the first place. That relatively small investment in getting little TheWizardTim access to books has now turned him into a successful [whatever-you-are], which provides a huge return on investment.

      We may someday see arguments that stricter copyrights are good for the economy because it allows more profits for publishers. What we shouldn't forget to include in those calculations is all the economic waste of having little TheWizardTims everywhere grow up to be poor stupid criminals instead of upstanding and productive members of society.

  16. Re:will Apple be the "game changer"? by jedidiah · · Score: 4, Insightful

    Any ebook that's more expensive than the corresponding paperback is INSANE.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  17. They're fighting it with an "educational campaign" by tomhudson · · Score: 4, Funny
    Book publishers today announced that they are launching a new educational campaign targeted at the people who steal their intellectual property by reading books they didn't buy.

    Their "Campaign to Promote Illiteracy" will be mandatory in most schools in the next semester. Students will be treated to videos with titles such as "Johnny Can't Read"; older classes will be subjected to aversion therapy with pop-up books such as "My Pet Goatse" and "Animal Farm-sex".

    They'll also be promoting their new android-based phone, which enables illiterates to send "text" messages using only pictures, so that texting becomes a game of rebus. For example, he message "Can I see you tonight?" becomes
    "picture of a tin can" = "can", +
    "picture of an eye" = "eye", +
    "picture of waves" = "sea", +
    picture of a female goat" = "ewe", +
    "picture of dog poop" = "number 2" +
    "picture of a knight on a horse" = "knight"

    "can eye sea ewe 2 knight" = "can I see you tonight"

  18. Re:*sigh* by mschuyler · · Score: 4, Informative

    Wherever did you get this silly idea? Libraries pay the same discounted rate as bookstores, usually in the neighborhood of 45-55% BELOW retail. Most books are purchased from Ingram or Baker & Taylor, wholesalers. If you do the math on this, it winds up that a million dollar book budget buys 2 million dollars worth of books. (Take the 45% you just saved; buy more books. Take the 45% you just saved; buy more books. Repeat until funds=0.) I supervised the Technical Services Department of my library (and IT) for 25 years, which included the book budget.

    --
    How about a moderation of -1 pedantic.
  19. Facts bout public libraries by mschuyler · · Score: 5, Informative

    Fact 1: Public libraries are just about the best return on investment for your tax dollar. For every dollar you spend supporting the public library, you get about $8.00 back in services. If you had to pay retail (or even discounted) for every book borrowed from the public library, that's the ROI you would see. Name another government organization that can give you a better ROI. (Note: You can't.)

    Fact 2: If you have a recession, usage of the public library goes up. Ironically, the library budget is subject to the recession as much as any other business or government entity. For most businesses, if traffic goes up, so does income. It's the opposite for a public library.

    Fact 3: If it were not for public libraries, many books would not be published at all. That's because publishers factor in the public library market in their decision to publish. Larger public libraries buy a given title in the hundreds of copies. There are over 16,000 public libraries in the US. The market is not trivial.

    Fact 4: Public libraries are largely responsible for publishers' 'Backlists' of older titles. Nobody else buys them.

    Fact 5: It is an established fact that people who use public libraries buy far more books than people who do not. Public libraries help create the market that gives profits to publishers.

    Fact 6: Research libraries, especially, are a captive audience for the over-priced, rip-off "scientific" journals that cost hundreds, even thousands of dollars a year that academics "must have." No individual can afford them. If libraries "just said no" those journals would fail in a heartbeat.

    Fact 7: Cutting off libraries is a stupid idea. It's cutting off your nose to spite your face.

    --
    How about a moderation of -1 pedantic.
  20. typo by commodoresloat · · Score: 5, Funny

    You spelled his name wrong; that's GNU/Stallman