[mumblemumble]

The ruling discusses this starting on page 33. The gist is that they set up a non-transformative service that is substantially equivalent to competing ebook services and CDLs, but unlike those it is not paying the customary price to publishers.

It also discusses that there is a very good reason why digital libraries don't typically get to have perpetual rights to a work at the retail (or used) price for a print book. Basically, physical books wear out with use, ebooks don't, so there's a built-in mechanism for revenue recurrence that happens with print books but not ebooks. The ruling points out that publishers originally sold ebooks to libraries at the same pricing as print books, but abandoned the practice because they discovered that it was not financially sustainable.

And that's ultimately where the harm comes in. The IA is trying to create a loophole that subverts the income stream of all the people who work on a book by offering derivative works - which are never fair use; fair use is for transformative works - without paying the market's customary price for acquiring rights to create and distribute derivative works.

(As an aside, when I see authors speaking for themselves on these sorts of issues they will typically point out that editors and typesetters and cover artists and all the other folks who work on a book also deserve to get paid. It seems to only be people who are tokenizing authors for rhetorical purposes who want fixate on authors specifically and erase the value-adding contributions of "the publishers".)

[kmeisthax]

> Basically, physical books wear out with use, ebooks don't, so there's a built-in mechanism for revenue recurrence that happens with print books but not ebooks.

As someone who understands the ruling and why IA lost completely, I still hate this argument, because it gets the history backwards. When first sale was put into (case)law, ebooks didn't exist. First sale doesn't exist because "oh, well, the book wears out eventually". It exists because you have an ownership interest in that copy of the book and copyright law has to respect your physical ownership of that property. Once you have sold a copy, your rights as a copyright owner are exhausted.

With digital distribution, the law decided that, no, there is no rights exhaustion whatsoever. And this is mainly because the technology was made after the law was horrifically unbalanced (or re-balanced) in favor of large publishers. CDL absolutely has no leg to stand on in the courts, but it is the sort of thing that would make sense as the legal basis for a new rights exhaustion regime that was properly legislated in Congress.

> As an aside, when I see authors speaking for themselves on these sorts of issues they will typically point out that editors and typesetters and cover artists and all the other folks who work on a book also deserve to get paid. It seems to only be people who are tokenizing authors for rhetorical purposes who want fixate on authors specifically and erase the value-adding contributions of "the publishers".

I've talked about the habit of copyright reformists / abolitionists ignoring the "creative working class" in the past. The headline artist on a work is most likely to be able to survive off non-royalty income because they have social capital that the creative working class does not. On the other hand, publishing firms don't give a shit about the creative working class either! A lot of media companies are run by people who think generative AI is going to let them eliminate entire classes of creative labor and replace it with ChatGPT prompts.

I'm not entirely sure referencing the opinions of headline artists helps either. In contrast to (but not negating) what you've said, I've heard authors complain endlessly about publishers, too. Things like, oh, we don't want to fund the third book in your trilogy, but we also aren't going to let you trip the rights reversion clause in your contract, so you just can't finish the story. Shit like that. Publishers' valuations are based at least in part on their total IP catalog, so a work they don't want to touch anymore is worth more to them dead than alive.

[hilbert42]

"the law decided that, no, there is no rights exhaustion whatsoever"

Ultimately, the law will either have to change to be fairer and recognize the buyer's investment or digital copying (piracy) will overwhelm it. It's not if but when (technology almost makes that axiomatic).

This will not happen immediately but as US influence in the world declines other fairer paradigms will emerge. As we've seen already, probably about one third of the planet's population pays little heed of copyright law, or it does so in name only—and that number will only increase with time (and as copying tech improves even further).

The US and Western countries have a choice, be fairer and less greedy or suffer the consequences.

[MetaWhirledPeas]

This whole thing is backwards. Selling books began in a time when there was inherent value in distributing books, meaning there was no other way to read a book than to purchase or borrow a physical copy.

The money followed the value.

The value of distribution is no longer there. We are trying to push yarn up a chimney.

I like living in a world where authors make a living by writing books, but if the inherent value isn't there then it's all fake, fake fake.

This is the same predicament we've been in for years with other forms of media, but those with big corp backing have managed to synthesize value through various forms of sabotage like DRM or linking their software to a remote server somehow. We've come to accept it because there's value in dodging all of the nonsense.

Consumers will always be the barometer for fairness; if they perceive value, they will pay for it. But all the controversy is about fairness for the authors and publishers. If authors can figure out some money-making scheme then great, but let's not concern ourselves with "fairness" for the author because that went out the window a long time ago. This is all just a big money grabbing game at this point. (And what they really mean is fairness for popular authors anyway.)

Maybe the future will look different. We need authors, we need editors, but do we need publishers? Probably not. Maybe a trend will form where groups or individuals commission a work from an author, taking the place of the publisher on a more ad hoc basis. Or maybe concepts like Patreon will evolve to better compensate authors. I don't know exactly what it will look like, but I do know that targeting groups like the Internet Archive is nothing more than a delay tactic.

[hilbert42]

Thank you for your comment, I agree with everything you've said. I come to the matter as a consumer so my emphases come from that perspective but I'd suggest there's very little difference in our views.

You may be able to gauge this from my earlier post where I've advocated that creators should receive fair recompense for their work: https://news.ycombinator.com/item?id=41455357. (I've written on this topic many times over the years and I've always advocated creators should receive fair and reasonable dues.)

I agree with you about it all being backwards. Unfortunately, it's a fact that wasn't helped by opportunistic creators such as Hugo in the 1880s as I pointed out here: https://news.ycombinator.com/item?id=41456596. That said, times were different back then and despite my criticism of Hugo et al they had a valid case. Same can be said of Gilbert & Sullivan and the pirating of their operettas (see 'background'): https://en.m.wikipedia.org/wiki/The_Pirates_of_Penzance.

What happened in 1886 at Berne was overshoot albeit an understandable one. The trouble is that once in place international law is essentially entrenched forever, revising it is is nigh on impossible. Unfortunately—but understandably—rights holders aren't going to give ground without a struggle. This I reckon is the crux of the problem and it's primarily the publishers who refuse to give ground—not so much content creators.

The issues are many and they range across a vast field—from how much does a creator owe back to society from it having nurtured and educated him/her through to publishers being bloody-minded over protecting orphaned works, through to DRM, through to equity/arguments over access to information which has educational implications—thus ultimately it's of strategic importance at a national level (China's lax IP laws have helped it enormously, the US and Western nations ought to take note).

As I see it, content creators and consumers need to join forces to arrive at a mutually satisfactory agreement and I see little room for both Big Tech and existing authoritarian publishers in such an arrangement. (And I agree with you, 'consumers will always be the barometer for fairness; if they perceive value, they will pay for it'.)

I'd add that both parties ought to encourage and foster this symbiotic relationship ASAP, as at best both will benefit, at worst it'll be the least destructive option.

What I fear most is that copying tech will become so easy that any sense a human can experience will be able to be copied. Very soon one will be able to capture just about everything one sees, reads or does with great ease, copying by default will become the norm. This could easily become very destructive and not benefit anyone, creators, users and society will all be worse off.

Copyright, IP and patents are very complex matters that just can't be left to hip pocket arguments and or gut reactions over property rights and it's time the debate matured to reflect this. That won't be easy given that money is involved.

Like you I don't know how it will end up but it's clear that things could go horribly wrong if sense doesn't prevail. Let's hope it does.

[MetaWhirledPeas]

This is my first time hearing of the 1886 Berne Convention, very interesting. And the United States did not join until 1989.

> What I fear most is that copying tech will become so easy that any sense a human can experience will be able to be copied.

For many people and mediums this is already the case. What bothers me most is that this normalizes outlaw behavior. That is usually an indication that the law is wrong, but in the meantime it erodes our collective morals.

[vel0city]

> It exists because you have an ownership interest in that copy of the book and copyright law has to respect your physical ownership of that property.

Right, copyright law needs to respect your ownership of that physical property. That bound collection of paper. That stamped piece of vinyl. That reel of magnetic tape. That plastic disc. The copyright protects the ideas and creative stuff on that medium, but not the actual medium itself. You don't actually own any of the ideas that medium contains, but you do own the actual medium.

But what property do you actually own when you "buy" a digitally distributed work? What is the "that" in this case? A collection of bits that are indistinguishable from every other copy of the file? Isn't that what is actually copyrighted, and not the "that"?

[kmeisthax]

Speaking purely in the realm of Law, and what arguments will get past a court, "buying" a digitally distributed work does not confer any ownership. At the bare minimum, what is actually being purchased when you buy a digitally distributed work is a combination of a license and a service. They transmit the work to you, and you have a license to copy that transmission and store it indefinitely, for your own use. There is no "that" being sold, you are making all the copies yourself, so you need permission to make those copies. And permission cannot be resold.

In the law, a "license" is just permission from a copyright holder to do something. There are no standard terms like there is with a "sale", because licenses are usually tied to a contract[0]. And contracts can have really arbitrary provisions[3]. For example, fair use says you don't need permission from a copyright holder in order to review a game. But if that game is only available digitally, the copyright owner solely dictates the terms upon which the game is sold, through contracts and licensing. And that contract could absolutely just say "you agree not to review the game in exchange for permission to copy the game to your hard drive and RAM[4]", in which case there is no fair use anymore. In fact, Oracle already did this[1].

The law has no counter to this because, for the vast majority of copyright case law history, nobody needed permission to purchase a physical copy of a creative work[5]. Physical media has very well established consumer rights that were codified back when copyright law wasn't nearly as blatant a power grab. Digital is very recent, and copyright law has gotten significantly stricter. It's often said that "the law needs to catch up to technology", but that usually gets said in the context of "I thought of this cool little excuse to not get permission[2] but the court won't agree". Where technology really outflanks the law is in inventing new ways to strip consumers of their rights, by turning things that didn't need permission into things that now do.

[0] US law only. In other countries licenses are treated as separate from contracts, but this is mainly something plaintiff lawyers have to remember when drafting complaints, since "doing something without permission" is copyright infringement but "getting permission, but not fulfilling your end of the bargain" is breach of contract here.

[1] https://en.wikipedia.org/wiki/David_DeWitt#DeWitt_Clause

[2] Which will never be granted, mind

[3] The only real restriction on contracts being that you can't literally sell yourself into chattel slavery. BTW, in unrelated news, never upload your brain into a computer if you happen to like the 13th Amendment.

[4] DON'T GET ME STARTED ON MAI SYSTEMS CORP VS PEAK COMPUTER INC

[5] Thomas Edison tried.

[vel0city]

I agree with pretty much everything you said here. However, I'm kind of hoping my comment would draw out more on this idea.

> Speaking purely in the realm of Law

Let's argue this from the basis of expanding the ideas of copyright to something newer and better for this digital age. As mentioned, these days we're really just buying licenses. How do we better define property rights with this new(ish) concept of ownership to help individuals continue to have useful rights while not just suggesting copyright overall is now meaningless and creators no longer have any protections? Do we codify some basic rights of ownership around what a license is, what it means, and how one transfers ownership of it?

[BlueTemplar]

Speaking of property-adjacent rights, there's this tricky ongoing legal battle :

https://www.stopkillinggames.com/

[kmeisthax]

Good question. While I personally would not consider "suggesting copyright overall is now meaningless" to be a failure[0], there's no way in hell anything that might even remotely harm industry revenue would ever make it through Congress, European Parliament, and/or the Japanese Diet; much less survive challenges in the court or WTO. So the only reforms I can actually suggest are marginal things like this.

Anyway.

First you need to legally define the kinds of licenses we care about. There's a bunch of very good reasons why permission can't be sold, so we want to make it clear that we're only talking about things that function like a sale. That is, one-time purchases of works that are downloaded to a device and whose license grants fall within normal use of that work. This is the sort of thing that needs to be drafted water-tight because the industry absolutely will search for excuses to not comply with the law.

Second, we need to define how a transfer can be done and who needs to honor it. This has per-work and per-service considerations, especially in games[1], which have anticheat and toxic player removal. There are times where a copyright owner has a legitimate interest in taking away the thing you bought because you are ruining the experience for everyone else. So we need carveouts for our carveouts, both of which need to be carefully drafted to not interfere with anticheat.

And this is only considering digital-to-digital first sale. That's easy to do because the systems already exist to revoke and delete your ownership over digital copies of works; you just aren't allowed to use them for first sale purposes. We're ultimately just dictating that certain kinds of DRM license files have a legal mechanism to transfer between owners.

Physical-to-digital schemes like the IA's Controlled Digital Lending pose an additional problem: there's nothing to physically enforce the destruction or disabling of the physical copy when you convert it to a digital one and lend it. The book doesn't refuse to open because someone has it open in Adobe Editions. Everything is done on the honor system and there's massive incentives to cheat CDL. The discovery on the IA lawsuit showed that they basically had never complied with their own legal theory. They had partner libraries who were counting copies of books as digitally loanable without actually taking them out of circulation, and when IA had discovered this on their own, they never did anything to take that library out of the system.

An actually legal CDL regime would need infrastructure to support itself. I'm talking legally qualified DRM banks that could lock up or burn books in exchange for DRM limited files that accurately represented the time in which the physical side of the book was inaccessible. That's... still extremely complicated. Actually, screw CDL. If we're talking about amending the law, there is a far easier way to go about fixing the problem with ebook lending: Book Communism!

Compulsory licensing is a scheme in which the government sets the price of a specific kind of copyright license. If you pay that amount of money to the copyright owner, you automatically have that permission, they can't say no. Naturally, copyright owners would liken this to theft, but they thought your dad's VCR was a home-invading rapist[2], so I don't consider their opinions on the subject to be meaningful. The idea is actually pretty straightforward: having a government-set license price makes licensing a lot more straightforward. Creative work owners can't make silly demands of users or withhold shit because their """strategy""" that quarter was to keep something off the market or sell exclusivity[3].

The specific imbalance that IA tried to fix with CDL is that libraries, being public services run by local governments, do not have negotiating leverage for favorable ebook lending terms with major publishers. "Just lend out physical books digitally" fixes the problem for libraries but the infrastructure needed to make this not unfair to authors or publishers is silly. Why can't we just have the federal government say, OK, we'll sell licenses in which any library can pay $X to the owner of a given book and then digitally lend it out Y times or for Z days? The Copyright Office or some administrative judge can determine fair values for X, Y, and Z.

[0] For one thing, if you are a small artist, you effectively do not have copyright protection because the enforcement costs for a single infringer greatly exceed your total revenues. Copyright is already a failed system.

[1] For example, if reselling whole accounts is legal, then I can buy hundreds of accounts, play the game I want to cheat in on each one, and switch accounts whenever I get banned.

If reselling individual licenses is legal, then after I get banned, I can resell the license - which continues to remain valid - and get my money back so I can repurchase the game on a new account with a fake identity.

[2] https://en.wikipedia.org/wiki/Jack_Valenti#Valenti_on_new_te...

[3] A related wrinkle in the CDL story is that publishers really, really hate libraries. Not because they let people read books for free - in fact, library circulation is actually really good advertising for sequels that won't hit libraries right away. The problem is that libraries are run by book fans, so they're going to recommend books they like, not what the publisher needs to sell that month.

[MrDrMcCoy]

I've always liked the idea of moving to compulsory licensing for patents so we can have things like day-1 generic drugs and an end to IP-squatting, so am definitely interested in further exploring similar mechanisms for copyright. What would it mean for the government to set prices? Works of similar classification may have a wide array of quality and utility, and thus suggest different pricing. Compulsory licensing for patents would not require government pricing, since they could instead mandate a percentage of profits be assigned to the pattentee.

I am skeptical of government bodies having the agility to appropriately respond to market needs in a timely and equitable fashion, since they've done such a bad job with the rules in every other area. This is not to say that it can't or shouldn't be done, but definitely deserves careful consideration. What mechanisms do you imagine might keep such a system functioning healthily?

[BlueTemplar]

Screw anticheat too, it's even worse than DRM : an even more invasive software for an even more anecdotic use.

[iggldiggl]

> Basically, physical books wear out with use, ebooks don't, so there's a built-in mechanism for revenue recurrence that happens with print books but not ebooks.

While physical books might indeed wear out, I think they wear out way slower than what current library e-book licenses might suggest (apparently two years or 26 lends seems to be popular in the US? – my library has tons of books older than two years, and back from when they used to stamp the return date in the back, quite a few books had hit 26 lends without falling apart yet).

[mezzie2]

Also, physical books can be rebound/repaired. The binding is usually the point of failure, and even smaller libraries often have rebinding equipment. I worked in libraries for over a decade and I could probably count on one hand how many books (as opposed to CDs/DVDs/other materials) that were weeded due to condition versus because they simply weren't used or contained out of date/wrong information.

[wbl]

IANAL but I don't think the work is legally a derivative any more than a JPEG of the Mona Lisa is. In US law those are the same for copyright. MS Word vs PDF shouldn't matter so neither should this.

[mumblemumble]

The ruling's section on transformativeness explains the distinction. Note that "derivative works" under US copyright law works differently from how it gets defined in typical open source licenses.

My understanding is that, for the purposes of determining fair use, a derivative work is substantially the same thing but in a different format. Transformative work must involve significant additional creative contribution "Changing the medium of a work is a derivative use rather than a transformative one." They cite previous case law that holds repackaging a print book as an e-book as a "paradigmatic example of a derivative work." The law also offers some paradigmatic examples of transformative work, such as criticism, commentary and scholarship.

Based on all of that, I would guess that, for the purposes of copyright law, a JPEG of a painting is absolutely a derivative work and not a transformative one.

[tptacek]

Just to be clear: works that are transformative are a subset of derivative works. They're all derivative works.

[bryanrasmussen]

The only way an ebook of a novel is not derivative in the same way a JPEG is not derivative of the Mona Lisa is if we are talking about the author's original handwritten version that just came up for auction

on edit: actually I also think that a JPEG of the Mona Lisa is derivative, but just noting that the value we ascribe to the Mona Lisa is something like the concept of Mana for art https://medium.com/luminasticity/art-as-a-tool-for-storing-m...

[asadotzler]

>The ruling discusses this starting on page 33. The gist is that they set up a non-transformative service that is substantially equivalent to competing ebook services and CDLs, but unlike those it is not paying the customary price to publishers.

The question was "how is this hurting authors" and your reply is to carry water for publishers?

[bryanrasmussen]

as lousy and inefficient a system as the one we mainly have is, as a theoretical rule in this system authors get some share of the money that goes to publishers.