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<title>Techdirt. Stories about &quot;penguin&quot;</title>
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<image><title>Techdirt. Stories about &quot;penguin&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
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<pubDate>Thu, 27 Sep 2012 08:08:03 PDT</pubDate>
<title>Penguin Taking Underperforming Authors To Court To Recoup Paid Advances</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20120926/16265120521/penguin-taking-underperforming-authors-to-court-to-recoup-paid-advances.shtml</link>
<guid>http://www.techdirt.com/articles/20120926/16265120521/penguin-taking-underperforming-authors-to-court-to-recoup-paid-advances.shtml</guid>
<description><![CDATA[ This looks like it might be a new sign of the disrupted times. With major publishing houses competing with damn near everyone for readers, they can longer be expected to hand out hefty advances, especially in exchange for the literary equivalent of vaporware.<br />
<br />
Penguin has decided to reclaim a bit of the money it threw at a selection of authors and, in one case, a potentially heartwarming tale of love and concentration camp survival that turned out to be completely fabricated. The Smoking Gun <a href="http://www.thesmokinggun.com/buster/penguin-group/book-publisher-sues-over-advances-657390" target="_blank">has published the names and amounts sought by Penguin</a> in the lawsuits filed for "breach of contract/unjust enrichment." Here&#39;s a couple of defendants from the list:
<blockquote>
<i>* Blogger Ana Marie Cox, who signed in 2006 to author a "humorous examination of the next generation of political activists," is being dunned for her $81,250 advance (and at least $50,000 in interest). Her Penguin contract totaled <a href="http://i.cdn.turner.com/dr/teg/tsg/release/sites/default/files/assets/anamariecoxmoney.jpg" target="_blank">$325,000</a>.</i><br />
<br />
<i>* Holocaust survivor Herman Rosenblat was signed for <a href="http://i.cdn.turner.com/dr/teg/tsg/release/sites/default/files/assets/hermanrosenblatmoney.jpg" target="_blank">$40,000</a> in 2008 to describe how he "survived a concentration camp because of a young girl who snuck him food. 17 years later the two met on a blind date and have been together ever since, married 50 years." While Rosenblat&rsquo;s story was hailed by Oprah Winfrey as the "single greatest love story" she had told on the air, it turned out to be a <a href="http://www.nytimes.com/2008/12/31/books/31opra.html" target="_blank">fabrication</a>. Penguin wants him to repay a $30,000 advance (and at least $10,000 in interest).</i></blockquote>
<a href="http://www.edrants.com/penguin-sues-elizabeth-wurtzel-ana-marie-cox-and-other-authors-who-cant-deliver-books/" target="_blank">Ten more authors were named, including "Prozac Nation" author Elizabeth Wurtzel</a>, who failed to deliver a "book for teenagers to help them cope with depression." The total amount, including interest, totals to over a half million dollars. Authors failing to deliver something printable (or anything at all) to publishers is nothing new, but a shotgun blast of legal filings against authors is a bit novel. (Oh, ho! A book pun.) It would be tempting to call this a new "revenue stream," but only the interest would be "new" money.<br />
<br />
Theories as to ulterior motives or possible underhandedness on Penguin&#39;s part are being advanced (and another pun! completely unintentional!). In The Smoking Gun&#39;s comment thread, Trident Media Group chairman Robert Gottlieb speculates (strongly) that Penguin&#39;s treatment of its authors is disingenuous, at best:
<blockquote>
<i>Authors beware. Books are rejected for reasons other than editorially and publishers then want their money back. Publishers want to reject manuscripts for any reason after an author has put time and effort into writing them all the while paying their bills. Another reason to have strong representation. If Penguin did this to one of Trident&rsquo;s authors we could cut them out of all our submissions.</i></blockquote>
Another possible angle is offered by <a href="http://www.mediabistro.com/galleycat/robert-gottlieb-responds-to-penguin-lawsuit-authors-beware_b58096" target="_blank">literary blogger Edward Champion</a>:
<blockquote>
<i>Why did Penguin wait until NOW to go after advances? Has Ducksworth been settled? And are authors having to pay up for discrimination?</i></blockquote>
Champion refers to the <a href="http://www.insidecounsel.com/2012/09/06/penguin-faces-age-discrimination-suit" target="_blank">age discrimination lawsuit filed earlier this month</a> against Penguin by Marilyn Duckworth, who alleges the publisher forced her out after 27 years of employment to pursue employees that were "faster, stronger and more nimble."<br />
<br />
At this point, it&#39;s tough to judge the merits of the lawsuits based on anything other than Penguin&#39;s claims. It looks like straight-up breach of contract and the range of topics left unpublished (the rise of Bass Pro Shops, an "analytical forecast arguing for the future success of gold," a second book from the "dynamic pastor of the Empowerment Temple") suggest that Penguin&#39;s not limiting legal action to trendy bloggers or other "next big things." If this action proves to be successful, it&#39;s not tough to imagine other publishers following suit (Pun trifecta!), especially with the possibility of collecting 25-30% interest thrown into the mix.
<br /><br />
But, if you're an author-to-be, and choosing to sign a publishing deal with a major publishing house, you'd have to think that this kind of thing would make you a lot less willing to sign with Penguin.  Who wants the added stress of possibly being sued for the advance the publisher gave you?  It would seem that authors may start to be a lot less interested in publishing with Penguin.<br /><br /><a href="http://www.techdirt.com/articles/20120926/16265120521/penguin-taking-underperforming-authors-to-court-to-recoup-paid-advances.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120926/16265120521/penguin-taking-underperforming-authors-to-court-to-recoup-paid-advances.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120926/16265120521/penguin-taking-underperforming-authors-to-court-to-recoup-paid-advances.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>a-publisher's-greatest-revenue-stream-is-sometimes-the-authors-themselves</slash:department>
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<pubDate>Wed, 11 Apr 2012 07:20:35 PDT</pubDate>
<title>Breaking: U.S. Sues Apple, Publishers Over eBook Price-Fixing</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20120411/07155418453/breaking-us-sues-apple-publishers-over-ebook-price-fixing.shtml</link>
<guid>http://www.techdirt.com/articles/20120411/07155418453/breaking-us-sues-apple-publishers-over-ebook-price-fixing.shtml</guid>
<description><![CDATA[ Ever since the Justice Department <a href="http://www.techdirt.com/articles/20120309/03540318044/us-government-finally-realizes-that-publishers-apple-conspiring-to-raise-ebook-prices-is-price-fixing.shtml">announced</a> that they were investigating Apple and several publishers over allegations that Apple's agency model for ebook pricing violates antitrust law, we've been waiting for the other shoe to drop. Last night, Reuters <a href="http://www.reuters.com/article/2012/04/11/us-apple-ebooks-idUSBRE8391JW20120411" target="_blank">reported</a> that a lawsuit was imminent, and now Bloomberg has the news that <a href="http://www.bloomberg.com/news/2012-04-11/u-s-files-antitrust-lawsuit-against-apple-hachette.html" target="_blank">the government has filed a lawsuit against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon &amp; Schuster</a> in New York district court.

<p>Details are still scarce, but sources say Apple and Macmillan refused to participate in settlement talks while some of the other publishers are still hoping to avoid a drawn out legal battle, and may settle soon. <em><strong>Update:</strong> Bloomberg is now reporting that S&amp;S, HarperCollins and Hachette have settled.</em> It will be interesting to see what kind of defense Apple brings, because the evidence of collusion doesn't look good for them at all. Despite Authors Guild president Scott Turow's self-serving claim that this will somehow <a href="http://www.techdirt.com/articles/20120310/19034718067/authors-guild-boss-e-book-price-fixing-allegations-but-brick-and-mortar.shtml">hurt culture</a>, this is good news for readers: busting Apple's and the publishers' iron grip on ebook prices will likely reduce them across the board.</p>

<p>Here is this the <a href="http://online.wsj.com/public/resources/documents/ebooks04112012.pdf" target="_blank">government's complete filing</a> (pdf and embedded below).</p><br /><br /><a href="http://www.techdirt.com/articles/20120411/07155418453/breaking-us-sues-apple-publishers-over-ebook-price-fixing.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120411/07155418453/breaking-us-sues-apple-publishers-over-ebook-price-fixing.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120411/07155418453/breaking-us-sues-apple-publishers-over-ebook-price-fixing.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>fresh-news</slash:department>
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<pubDate>Mon, 12 Mar 2012 03:45:19 PDT</pubDate>
<title>Penguin Pointlessly Annoys Readers With USB-Only eBooks</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20120307/11580818023/penguin-pointlessly-annoys-readers-with-usb-only-ebooks.shtml</link>
<guid>http://www.techdirt.com/articles/20120307/11580818023/penguin-pointlessly-annoys-readers-with-usb-only-ebooks.shtml</guid>
<description><![CDATA[ <p>Reader <strong>Jason Alcock</strong> alerts us to another example of a company taking a backwards approach to value-added services by putting artificial restrictions on their content. Apparently, while ebooks from the popular publisher Penguin are available to borrow from Kindle libraries,  
<a href='http://www.wccls.org/library2gohelp/kindle-books-usb-transfer'>Penguin requires that they only be transferrable by USB, not wireless</a>. This, in turn, means that they cannot be read with the free Kindle apps on platforms like iOS and Android, since USB transfer is only supported on the Kindle device itself.</p>

<p>I'm at a loss as to what this is supposed to accomplish. Kindle books are DRM-controlled regardless of how they are transmitted, so it has no impact on the potential for piracy. Presumably Penguin thinks this will spur more readers to buy rather than borrow, but in reality it has just created <a href="http://www.amazon.com/forum/kindle?_encoding=UTF8&#038;cdForum=Fx1D7SY3BVSESG&#038;cdPage=1&#038;cdSort=newest&#038;cdThread=Tx26FJWSK1LKM0I#?_encoding=UTF8&#038;tag=heaprcom05-20&#038;linkCode=ur2&#038;camp=1789&#038;creative=390957" target="_blank">consumer confusion</a> and <a href="http://www.mobileread.com/forums/archive/index.php/t-169709.html" target="_blank">angry backlash</a>.</p>

<p>Of course, this isn't the first time a <a href="http://www.techdirt.com/articles/20110226/12443313275/harpercollins-wants-to-limit-library-ebook-lending-to-protect-authors-libraries.shtml">publisher</a> has <a href="http://www.techdirt.com/articles/20111230/07161417236/if-libraries-didnt-exist-would-publishers-be-trying-to-kill-book-lending.shtml">tried</a> to place arbitrary restrictions on ebook lending. It's an especially frustrating trend, because the entire concept of "lending" ebooks is <em>already</em> one big artificial restriction. When will content companies learn that courting customers is about adding value, not taking it away?</p><br /><br /><a href="http://www.techdirt.com/articles/20120307/11580818023/penguin-pointlessly-annoys-readers-with-usb-only-ebooks.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120307/11580818023/penguin-pointlessly-annoys-readers-with-usb-only-ebooks.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120307/11580818023/penguin-pointlessly-annoys-readers-with-usb-only-ebooks.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>screw-you,-customers</slash:department>
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<pubDate>Fri, 25 Mar 2011 14:32:00 PDT</pubDate>
<title>Dangerous Internet Jurisdiction Ruling Lets Penguin Bring Suit In NY, Despite No Evidence Of Harm In NY</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20110325/01505913622/dangerous-internet-jurisdiction-ruling-lets-penguin-bring-suit-ny-despite-no-evidence-harm-ny.shtml</link>
<guid>http://www.techdirt.com/articles/20110325/01505913622/dangerous-internet-jurisdiction-ruling-lets-penguin-bring-suit-ny-despite-no-evidence-harm-ny.shtml</guid>
<description><![CDATA[ There have been plenty of legal jurisdiction questions raised by the internet over the years.  Since the internet is available effectively anywhere, under whose jurisdiction do legal actions take place?  To date, courts have come up with a mishmash of different rulings on the issue, and the rules are anything but clear.  Unfortunately, a new ruling, in NY State's Court of Appeals seems to go against wider precedent and suggest that because something is on the internet, <a href="http://www.google.com/hostednews/canadianpress/article/ALeqM5jz5ZkWB1e1vOexn6OWQnKw6m1hAg?docId=6356145" target="_blank">you can pretty much bring a case where the company is located, rather than where any actual harm takes place</a>.  This seems to directly contradict the court's own earlier ruling in <a href="http://ny.findacase.com/research/wfrmDocViewer.aspx/xq/fac.%2FSAC%2FNY%2F1980%2F19800214_0040772.NY.htm/qx" target="_blank">Fantis Foods v Standard Importing Co.</a>, in which the court clearly stated that the plaintiff's location is not enough to say that it qualifies for jurisdiction in NY, if the "harm" is happening elsewhere:
<blockquote><i>
In final analysis the only possible connection between the claimed conversion and any injury or foreseeable consequence in New York is the fact that Standard is incorporated and maintains offices there. It has, however, long been held that the residence or domicile of the injured party within a State is not a sufficient predicate for jurisdiction, which must be based upon a more direct injury within the State and a closer expectation of consequences within the State than the indirect financial loss resulting from the fact that the injured person resides or is domiciled there
</i></blockquote>
So how does the court get around this?  It basically waves its arms around and says "but... but... the internet!"  Because, suddenly, the internet makes everything different.  It then follows that up with a simply incorrect (and troubling) analysis of copyright law.  As for the internet changing everything, the court basically throws its hands in the air and says "well, on the internet, we have no idea where anything happens, so rather than requiring proof, we'll just say it's okay to sue in NY."
<blockquote><i>
As a result, although it may make sense in traditional
commercial tort cases to equate a plaintiff's injury with the
place where its business is lost or threatened, it is illogical
to extend that concept to online copyright infringement cases
where the place of uploading is inconsequential and it is
difficult, if not impossible, to correlate lost sales to a
particular geographic area. In short, the out-of-state location
of the infringing conduct carries less weight in the
jurisdictional inquiry in circumstances alleging digital piracy
and is therefore not dispositive.
</i></blockquote>
I don't think that's either reasonable or accurate.  It is, in fact, possible to show geographically where harm has occurred.  Just because things might occur on the internet, it still involves <i>actual people</i> who live in an actual location.  The court's decision to basically give up because it's on the internet suggests it is mystified by technology it does not fully understand.
<br /><br />
As for the copyright claims, to further support the idea that it's okay to bring the suit in NY, despite the lack of evidence of harm in NY, the court relies on a bunch of copyright myths, including the idea that any harm to copyright means fewer works will be produced:
<blockquote><i>
Based on the multifaceted nature of these rights, a New
York copyright holder whose copyright is infringed suffers
something more than the indirect financial loss we deemed
inadequate in Fantis Foods. For instance, one of the harms
arising from copyright infringement is the loss or diminishment
of the incentive to publish or write (see Twentieth Century Music
Corp. v Aiken, 422 US 151, 156 [1975]; see also Princeton Univ.
Press v Michigan Document Servs., Inc., 99 F3d 1381, 1391 [6th
Cir 1996], cert denied 520 US 1156 [1997] ["[P]ublishers
obviously need economic incentives to publish scholarly works . .
. If publishers cannot look forward to receiving permission fees,
why should they continue publishing marginally profitable books
at all? And how will artistic creativity be stimulated if the
diminution of economic incentives for publishers to publish
academic works means that fewer academic works will be
published?"]).
</i></blockquote>
That's a nice quote.  Too bad the evidence suggests that it's plainly wrong.  The first sentence of the quote that "publishers obviously need economic incentives to publish scholarly works..." may be true, but the implication that the only such economic incentive comes from copyright protection is false.  This is a myth that we hear too often, where people say that without copyright there is no incentive.  That's plainly wrong, yet courts and defenders of stronger copyright too frequently rely on such a claim.  But, further to this point, there's a growing body of research that has shown that as copyright has become less respected as things like online infringement have grown, <a href="http://www.techdirt.com/articles/20100621/0933449895.shtml">so has the production of new works</a>.  So the claim that he court relies on here, that if copyright is not enforced to the utmost degree, fewer works will be published, has simply not been supported by reality.  And, honestly, shouldn't courts be making judgments based on reality, rather than disproved theory?
<br /><br />
Either way, this ruling is troubling in any number of ways.  While it's specific to NY, whose "long arm" statute is pretty aggressive, this should raise serious concerns in the various copyright "trolling" cases we've seen, where the jurisdiction issue has been successfully challenged when the defendants are far away from where the suit is being brought.  A ruling like this, that effectively says that a case can be brought far, far away from where the accused lives/works, could put an undue burden on those being sued.  That's especially troubling in the lawsuits where the entire goal is clearly to get defendants to settle.  Based on this ruling, I wouldn't be surprised to see more copyright trolls start looking for ways to file cases in New York.<br /><br /><a href="http://www.techdirt.com/articles/20110325/01505913622/dangerous-internet-jurisdiction-ruling-lets-penguin-bring-suit-ny-despite-no-evidence-harm-ny.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20110325/01505913622/dangerous-internet-jurisdiction-ruling-lets-penguin-bring-suit-ny-despite-no-evidence-harm-ny.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20110325/01505913622/dangerous-internet-jurisdiction-ruling-lets-penguin-bring-suit-ny-despite-no-evidence-harm-ny.shtml?op=sharethis">Email This Story</a><br />
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