As we’ve continually reported over the past few years, the course of publishing continues to turn on litigation as much as innovation. In the most anticipated ruling of the year so far, the Court of Appeals recently upheld the antitrust verdict against Apple in a heatedly divided ruling that portends further appeal. The payout a settlement of up to $400 million to consumers (and another $50 million in legal fees) now hinges on whether Apple continues to pursue the case. Other ongoing cases of note include the FCS bankruptcy proceedings, and the suits against Author Solutions, along with the recently-opened antitrust […]
Legal
Judge Cote Denies Class Certification in One Author Solutions Lawsuit
More than two years after the original lawsuit was filed (with more recent lawsuits ongoing in other states) Judge Cote denied class certification to plaintiffs Mary Simmons and Jodi Foster, who are suing Author Solutions alleging fraud, unjust enrichment, and violation of various statutes and consumer protection acts. The original motion for class certification was filed last February. The 30-page decision, filed July 1, rejects certification for a variety of legal and technical reasons connected to the combination of charges in the suit. Judge Cote takes issue with Foster and Simmons seeking class claims in New York since they live in other […]
Appeals Court Upholds Verdict Against Apple, with Notable Dissent
The Second Circuit Court of Appeals ruled on Apple’s appeal of the verdict finding them guilty of antitrust violations in launching the iBookstore, upholding District Court Judge Denise Cote’s initial finding. Judge Debra Ann Livingston writes the majority opinion in the 2-1 ruling: “We conclude that the district court’s decision that Apple orchestrated a horizontal conspiracy among the Publisher Defendants to raise ebook prices is amply supported and well‐reasoned, and that the agreement unreasonably restrained trade in violation of § 1 of the Sherman Act.” As expected by court observers, Judge Dennis Jacobs files a dissenting opinion. While agreeing with Judge Cote’s findings […]
Judge Denies Results of Family Christian Bankruptcy Auction
U.S. Bankruptcy Judge John Gregg voided the results of the complicated bankruptcy auction for the Family Christian Stores bookselling chain, calling the process “at times, nothing short of chaotic.” At the same time, the Judge wrote, “While the Debtors clearly made mistakes at the auction, this court concludes that the allegations of fraud and unfairness are, in large part, unfounded.” That presents FCS with two main options: Reopen the bankruptcy auction, under the expanded oversight of the United States Trustee’s office, or, “as an alternative to recommencing the auction, the Debtors may simply wish to file a plan of reorganization […]
European Commission Investigates Amazon’s eBook MFNs In UK and Germany
The European Commission announced Thursday morning “a formal antitrust investigation into certain business practices by Amazon in the distribution of electronic books. Their focus is “certain clauses included in Amazon’s contracts with publishers. These clauses require publishers to inform Amazon about more favorable or alternative terms offered to Amazon’s competitors and/or offer Amazon similar terms and conditions than to its competitors, or through other means ensure that Amazon is offered terms at least as good as those for its competitors.” The EC’s scrutiny is on the two largest European markets for ebooks, the UK and Germany. The central question is whether Amazon’s most […]
Copyright Office Proposes “Pilot” Test of Rights Registry
The US Copyright Office published an extensive report on Orphan Works and Mass Digitization after extensive research and consultation, providing recommendations as Congress once again considers revision of copyright law. We’ve just begun reviewing the extensive 234-page document, which you can view/download here. The office fundamentally agrees with the Shawn Bentley Orphan Works Act that was passed by the Senate in 2008 but never went anywhere in the House of Representatives, saying it “continues to be the most viable legislative solution.” That process provides “a framework in which liability is limited for a user who conducts a good faith diligent search for the copyright owner” […]