Subscription Service Pays $250,000 to Settle Potential Claims ByScientific Societies

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

Forwarded from Chuck Hamaker, UNCC, of possible interest.

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COLLEGE PARK, Md., April 9 /PRNewswire/ -- The American Institute of
Physics, the American Physical Society, the Institute of Electrical and
Electronics Engineers, and the American Chemical Society jointly announced
today that they have received $250,000 in settlement of their potential
civil claims against a Los Angeles-based journal subscription service,
Eastwood Books, and its manager, Ms. Jung Shin.

Each of the non-profit scientific societies that participated in the joint
settlement publishes scientific journals sold at institutional
subscription rates to companies, libraries and universities. In order to
make these journals more widely available to individual scientists and
researchers, these societies also offer their members individual
subscriptions at significant discounts from institutional rates. The
societies received information alleging that Eastwood Books and Ms. Shin
were filing false society membership applications in order to obtain
multiple subscriptions of the scientific journals at individual membership
rates. They also were alleged to have filed overlapping false claims for
'missing' issues in order to assemble additional full sets of certain
journals. Eastwood Books and Ms. Shin then allegedly sold the journals
they received to institutions overseas at institutional rates that may
have been over ten times the individual membership rates that the
societies received for the subscriptions.

Without admitting liability, Eastwood Books and Ms. Shin agreed to pay
$250,000 to settle potential civil claims, and agreed not to place further
membership applications on behalf of individuals or to place further
subscription orders except at institutional rates. Eastwood Books and Ms.
Shin also agreed to provide certain additional information requested by
the societies regarding their subscription and distribution practices. The
societies expect that this information will allow them to identify
Eastwood's overseas institutional customers in order to ensure that they
are able to obtain valid and uninterrupted subscriptions at the proper
institutional rates.

"We are extremely pleased to have settled our potential civil claims
against Eastwood Books and Ms. Shin for $250,000," said Dr. Marc H.
Brodsky, Executive Director and CEO of the American Institute of Physics,
the society that spearheaded settlement efforts. "As non-profit
organizations, the money we collect from journal subscriptions goes
directly back into publishing scientific journals and fostering
educational programs for the benefit of our members and the public at
large. We hope this settlement has put a stop to activities that
ultimately would deprive our legitimate individual members, our library
customers who pay full and fair rates, and the entire scientific community
of the full benefit of the exchange of scientific ideas presented in our
journals. We also hope that this expensive settlement will discourage
others from considering similar tactics, which we now will keep watch for
and vigorously pursue."

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