netLibrary and OCLC Update

[Ann Okerson <ann.okerson@yale.edu>]

Of possible interest for netLibrary licensees.  Ann Okerson

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netLibrary and OCLC:  A Statement from Jay Jordan, OCLC President and CEO
October 19, 2001

Since netLibrary announced that it is seeking funding or a buyer, OCLC
staff have received many calls and messages about our escrow agreement
with this e-book vendor.

I have been in contact with Rob Kaufman, netLibrary CEO, who said he is
working hard to put in place a solution for netLibrary that is
satisfactory to its library customers.  netLibrary is conducting business
as usual as it explores options.

E-books are increasingly becoming a part of library collections.  We
applaud netLibrary's pioneering efforts in providing digital materials.
We will continue to be in close contact regarding the status of
netLibrary.

The OCLC/netLibrary escrow agreement has not yet been triggered; however
it might be helpful for me to outline the details of our arrangement with
netLibrary.

netLibrary has placed on deposit with OCLC CD-ROMs containing the e-books
licensed by libraries and the software necessary to provide access.  Our
escrow agreement with netLibrary calls for OCLC to provide netLibrary
subscribers who signed up for perpetual access with these CD-ROMs.  In the
event that netLibrary has ceased to conduct business for at least 60 days
or has become insolvent, OCLC will begin distributing these back-up copies
of the subscribed-to materials.

We stand ready to honor our agreement.  I will keep you apprised of
developments.

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