RE: US consumer purchase of international editions

[<Toby.GREEN@oecd.org>]

Sally,

I don't imagine for a moment that a more global approach to 
market rules out local initiatives to help the needy (and the 
needy could be closer to home than many may think!). Price is not 
the only factor. Even if there are very low price copies 
available in, say, Sri Lanka, the effort and cost of making them 
available in richer markets needs to be considered. At OECD, we 
have a global price for our books and have some local price 
arrangements on a few titles. We don't find these local priced 
editions coming back into the wealthier markets. Granted, we're 
not in the textbook business, but I'm sure one of the reasons 
we're not finding arbitrage on our titles is because the gap 
between the global price and the local price doesn't make it 
worth anyone's time to exploit the opportunity. In the example 
originally quoted, the gap is very large and with the much larger 
sales volumes inherent in textbook publishing, the opportunity to 
benefit from the arbitrage is going to tempt some!
  one to exploit the gap. In today's world, the cost of exploiting that gap is lower than before - so, whether they like it or not, publishers are going to come under pressure to think more globally and adjust their prices accordingly.

Toby


-----Original Message-----
From: owner-liblicense-l@lists.yale.edu
[mailto:owner-liblicense-l@lists.yale.edu] On Behalf Of Sally Morris
Sent: 25 September, 2009 2:11 AM
To: liblicense-l@lists.yale.edu
Subject: RE: US consumer purchase of international editions

Sadly, Toby's view of the future would seem to rule out the 
ability of publishers to produce specially priced (and sometimes 
specially produced) editions of textbooks etc, for those markets 
that can't afford the regular price.  Many of them have continued 
to do this at their own expense, after the demise of Govt-funded 
support such as the English Language Books Scheme. (The extreme 
case is in projects such as HINARI, where (online) journals are 
made available for free, or heavily discounted, to specified 
countries.)

It's not rocket science to work out that such publications would 
not be viable if everyone paid the special price.  'Differential 
pricing' has its place, though on the net it's harder to work out 
how you do it.

Sally Morris
Email: sally@morris-assocs.demon.co.uk

-----Original Message-----
From: owner-liblicense-l@lists.yale.edu
[mailto:owner-liblicense-l@lists.yale.edu] On Behalf Of Toby.GREEN@oecd.org
Sent: 23 September 2009 22:39
To: liblicense-l@lists.yale.edu
Subject: Re: US consumer purchase of international editions

Joe,

No surprise that most books are sold via bricks'n'mortar stores,
but I still don't see why the business model for physical books
necessarily rules out a global approach to market so that
customers can use channels to buy at the best price/service point
that suits them. Clearly, when customers learn that a 180 dollar
book can be bought for 50 elsewhere, someone will find a way to
facilitate an arbitrage. Publishers who think they can hide from
this remind me of King Canute's advisors (for it was they who
provoked this much-maligned King to demonstrate the power of the
laws of nature by sitting on the beach in front of the incoming
tide). But, you're quite right, it will take time, a long time,
before there's change.

Toby

----- Original Message -----
From: owner-liblicense-l@lists.yale.edu <owner-liblicense-l@lists.yale.edu>
To: liblicense-l@lists.yale.edu <liblicense-l@lists.yale.edu>
Sent: Wed Sep 23 04:33:56 2009
Subject: Re: US consumer purchase of international editions

Toby,

This is one of those areas where the vision and the reality are
very far apart. A global copyright regime at this time (yes,
times change) would actually reduce distribution of books and
other published material.

Why this should be so is that the bulk of formally published
information at this time is (a) still in book form (b) still in
print and (c) targeted primarily to consumers.  If it were
otherwise, that is, if we were talking about academic "papers" or
scientific datasets--or for that matter, corporate data, such as
market research reports--we could throw geographical rights
issues out the window.  But most publications are sold in bricks
and mortar stores, not from a Web site.  It is hard for people
who work with digital media all day to realize that Barnes &
Noble in the U.S. sells three times as many books as Amazon, and
even Borders, which has been reduced to a struggling enterprise,
is selling perhaps half again what Amazon sells. Outside of
mobile markets, the U.S. has the highest percentage of digital
sales anywhere.  I am reminded of William Gibson's wisecrack, to
the effect that the future is already here; it's just not evenly
distributed.

Since publishing is still largely a print and bricks-and-mortar
activity, those geographical rights issues are important.  I
doubt Random House has much of a distribution mechanism in
Thailand, or that Bloomsbury is doing blockbuster business with
its own sales force in Paraguay. These geographical rights issues
are going to be with us for some time.  Were they to disappear
before a fully digital infrastructure were in place, many books
simply wouldn't get beyond their home territory.

We can look forward to years, perhaps decades, of complicated,
frustrating copyright issues.  It will give us something to
do--paraphrasing Dylan, when we are tired of ourselves and
Facebook.

Joe Esposito

On 9/21/09 7:20 PM, "Toby.GREEN@oecd.org" <Toby.GREEN@oecd.org> wrote:

> This case is a wonderful illustration of something that has been
> bothering me for some time. Next month, at the Frankfurt Book
> Fair, rights managers from publishers around the world will be
> making deals based on geographic territories. In a pre-Internet
> age it made sense to let someone local handle a book's marketing
> and distribution. However, in a world where ICT has
> created/facilitated the Internet, POD and just-in-time business
> models, I think this geographic-based business model is going to
> fail. This is going to have big implications for the publishing
> industry (and for Book Fairs) because consumers will not put up
> with significant price differentials such as the one detailed
> below when it is so easy today to learn about lower prices and to
> purchase from low-priced markets.
>
> Claudia asks from a copyright angle - how does one address this
> question? In my view, quite simply. Any copyright owner now has
> to consider the market from a global perspective, not as a series
> of local markets. Boundaries will be marked, if at all, by
> language, not by geography. This means changing distribution
> arrangements - using local partners if necessary - under a global
> copyright regime.
>
> Of course, this is going to produce challenges. Costs are not the
> same everywhere nor are purchasing powers (a US student might
> afford $180, a Malaysian probably cannot - but then again, a US
> student from a poor background may be less able to pay $50 than a
> well-off Malaysian - reinforcing the point that geographic
> boundaries are pretty artificial when it comes to markets!) so
> prices won't be the same everywhere, but the gaps between them
> will close. This is going to be a big challenge for book
> publishers - a major cultural and operational shift. But it's
> entirely possible, I would have thought. After all, the world's
> scholarly journal and book publishers have been operating on a
> global copyright basis for decades.
>
> Toby Green
>
>
> -----Original Message-----
> From: owner-liblicense-l@lists.yale.edu
> [mailto:owner-liblicense-l@lists.yale.edu] On Behalf Of claudia holland
> Sent: 20 September, 2009 4:23 AM
> To: liblicense-l@lists.yale.edu
> Subject: US consumer purchase of international editions
>
> I was recently contacted by a parent who had purchased his
> college-aged child a textbook from an online source. He bought a
> hard copy mathematics textbook through a vendor represented on
> Amazon.com. The online information did not indicate that the book
> was an international edition of a Pearson publication that was
> "illegal" to purchase for use within the US or Canada. When the
> parent received the shrink-wrapped text, there was a notice
> plastered inside the wrapping on the book itself with language
> warning consumers about these limitations of use. The book came
> from Malaysia, apparently, and was advertised at less than
> one-third the cost of the text in the US (~$50 vs ~$180). No
> wonder he bought it.
>
> The parent was perturbed for several reasons: 1) the exorbitant
> mark-up for the same exact book available in the US, 2) the lack
> of consumer information from the Malaysian vendor (& the fact it
> was shipped to the US at all, given the warning), and 3) the lack
> of concern on the part of Amazon.com whose service was being used
> by the Malaysian vendor. As a copyright educator, how does one
> address this dilemma? Students and their parents want to do the
> ethical thing and purchase a work from the rightful content
> owner. In this case, they found out they are being fleeced by
> those who scream the loudest about their distribution rights!
>
> Claudia Holland