Unsurprisingly, Judge Denny Chin agreed with his own ruling from 2005 and once again agreed to certification of the class of authors in the refiled Google Books infringement case–thus sentencing himself to potentially years more of administering this case. He also approved associational plaintiff status for both the Authors Guild and the American Society of Media Photographers. One shouldn’t read much into the ruling other than that the case will go forward all over again. In part, Chin used Google’s own actions against them: “Given the sweeping and undiscriminating nature of Google’s unauthorized copying, it would be unjust torequire that each […]
Legal
Letters to Justice: Kohn’s 55-Page Brief, and Bookseller Peter Glassman’s Argument
CEO of RoyaltyShare, co-founder of eMusic, and former general counsel of companies including Borland Software Bob Kohn has dispatched a 55-page letter to the Department of Justice objecting to their price-fixing complaint in what probably qualifies as the most interesting legal brief to emerge in this case so far–even though it’s technically just a letter. Kohn essentially offers a more thorough and artful explanation of why he believes the agency model was pro-competitive rather than anti-competitive than what the defendants themselves have provided. Without the burden (or evidence) to deny the allegations themselves, he argues in broad form that “something […]
Macmillan Says DOJ Suit Is Nothing But Slim “Circumstantial Evidence” and “Innuendo”
Macmillan’s initial answer to the Justice Department’s antitrust suit filed on Tuesday May 29 is less extensive on a point-by-point basis than Penguin’s response, but it is no less definitive in denying the government’s allegations. “Despite an extensive investigation including production of the e-mails, calendars, and telephone logs of Macmillan’s CEO and other senior management, extensive interrogatories, and two full days of deposition of Macmillan’s CEO…the lack of direct evidence of conspiracy cited in the Goernment’s complaint is telling.” They add that the case is “based entirely on the little circumstantial evidence it was able to locate during its extensive […]
Penguin Says Government “Sides With A Monopolist” In Long Answer to AntiTrust Suit
Publisher defendants Penguin and Macmillan filed their first answers to the Department of Justice’s antitrust law suit in Federal Court on Tuesday, with both companies categorically denying the charges. Most broadly, Penguin repeats its contention that it “did not conspire to fix the prices of eBooks with other publishers or with Apple. Penguin, at the invitation of Apple, independently negotiated and ultimately entered into a vertical distribution agreement with Apple.” They argue “a vertical distribution agreement is presumptively pro-competitive. New entry is presumptively pro-competitive. Broader distribution is presumptively pro-competitive. Lower barriers to entry are presumptively pro-competitive. Yet the Government intentionally […]
Apple Denies Justice’s Pricing Conspiracy Charges, Says “The Government Sides with Monopoly”
On Tuesday, Apple filed their answer the Department of Justice’s complaint against the company in the agency ebook pricing action, taking direct aim against the government’s choices and motives. “The Government sides with monopoly, rather than competition, in bringing this case. The Government starts from the false premise that an eBooks ‘market’ was characterized by ‘robust price competition’ prior to Apple’s entry. This ignores a simple and incontrovertible fact: before 2010, there was no real competition, there was only Amazon. At the time Apple entered the market, Amazon sold nearly nine out of every ten eBooks, and its power over […]
As Expected, HMH Files For Pre-Packaged Chapter 11 Bankruptcy
Houghton Mifflin Harcourt filed for chapter 11 bankruptcy in New York’s Southern District Court Monday morning, listing debt of more than $1 billion each in the initial court filing. As previously reported, HMH is going through a pre-packaged bankruptcy to eliminate more than $3 billion in debt left over from the initial $7 billion accrued when Riverdeep merged Houghton Mifflin and Harcourt together several years ago, and hopes to complete its financial restructuring by the end of June. Court documents filed by HMH’s counsel Paul, Weiss, Rifkind and Garrison lists assets of “between $10 million and $50 million,” as well […]