E-books: for rent, not for sale

The advent of so-called electronic books (e-books) has somewhat been overshadowed by the debate as to the pros and cons of traditional printed books (popularly known as “old” media) against an increasingly digital format (“new” media) that is proving so popular within a networked and connected society.

To a large degree the focal point of this publishing revolution has rarely extended beyond the intrinsic format difference, with evident emphasis upon the physical space-saving advantage as well as the ease with which a mouse click on the online button that states, “Buy” in combination with a valid credit-card number, can effectively purchase almost any book and have it delivered directly to one’s e-book reader within seconds.  But are things really just as they appear to be?

In July 2009, Amazon, the world’s leading online retailer of e-books, as well as the Kindle e-book reader, was notified that it did not have the necessary rights to sell electronic copies of the George Orwell books Animal Farm and 1984.  In a measure that surprised many, Amazon, remotely and without any warning, deleted all copies of these two works from the Kindle devices of customers who had bought the e-book edition, and subsequently credited their accounts with the cost of purchase.

The 2009 incident was indicative of the fact that, contrary to popular belief, e-books are not quite like conventional books.  While format is an evident differentiation (paper vs bytes), a not-so-obvious difference is buried with the legal details that few ever bother to read: although we generally talk about purchasing Kindle e-books, in truth we are only renting them and access can be denied without explanation, and without recompense, any time Amazon decides to.

In October 2012, Linn Jordet Nygaard, an Amazon client, noticed that her Kindle e-book reader had developed grey-stripes across the screen and, after contacting Amazon’s support department, was informed that the reader would be replaced free of charge.

However, the replacement device could only be shipped to the UK since the original had been purchased from there.  Nygaard informed the Amazon representative that she lived in Norway but could provide a friend’s UK address as required.

The next day Nygaard noticed that she could not log in to her Amazon account through her damaged Kindle device. Thinking this was yet another fault with her e-book reader she tried to access her 43 e-books through her iPhone and even directly through the web.  However, it transpired that her Amazon account had been suspended without any prior notification or warning.

Nygaard contacted Amazon’s support department but her call was forwarded to an accounts specialist who insisted on communicating solely through e-mail.  Amazon refused to specify the reason for the suspension.

It is still unclear what Nygaard’s violation was but Cory Doctorow, an online blogger on Boingboing.net, deduced that “…the policy violation that [she] stands accused of is using a friend’s UK address to buy Amazon UK English Kindle books from Norway.  Under Amazon’s rules, this type of action is barred, as the publisher seeks to control what content is read in which territory of the world”.

The degree to which Amazon can control use of its e-books is underlined within Kindle’s Store Terms of Use. Clearly, Amazon controls the books we think we buy, but which, in truth, we do not.  Amazon’s Conditions of Use (the fine print) when purchasing e-books stipulates that the company reserves the right to refuse service, terminate accounts, remove or edit content, or cancel orders at its sole discretion.

According to Mathew Ingram, senior writer with GigaOM “…both publishers and distributors like Amazon have spent the past decade or so removing rights that we used to have when books were physical property, and were something that you actually bought – along with the right to resell and/or lend them to whomever you wished, whenever you wished. Those rights no longer exist, which is why it’s better to think of an e-book purchase as an agreement to rent access under specific terms rather than an actual acquisition of something tangible.”

A similar “licensed, not sold” restriction with respect to music is specified within the Terms and Conditions of Apple iTunes which stipulates that users cannot share or resell the content, and access can be revoked at any time.

When we buy an e-book or music, we are, in fact, merely buying a licence through which we can read the book or listen to the music, but not own it. In truth we do not buy e-books as much as rent them and we are all tenants of e-books or music within a form of long-term lease, the terms of which are brokered and policed exclusively by the leaseholder, whether Amazon or Apple.

Such a licence can therefore be revoked at any time if, as in the case of Nygaard, the e-book provider believes that the end-user has, in some way or another, breached the terms of service, even unintentionally.

Fortunately Nygaard’s brush with Amazon had a satisfactory conclusion.  Shortly after the story went public the company reinstated her account and restored her Kindle library and subsequently even shipped a replacement device.

Last April the internet giant Google.com started releasing the first version of the wearable gadget Google Glass to early-adopters – mainly application developers – who, as early as last year, had purchased the $1,500 ‘Explorer Edition’ of the gadget.

Tucked among the cutting-edge technology, customers will find the oft ignored Terms of Sale which declares that “…you may not resell, loan, transfer, or give your device to any other person. If you resell, loan, transfer, or give your device to any other person without Google’s authorisation, Google reserves the right to deactivate the device, and neither you nor the unauthorised person using the device will be entitled to any refund, product support, or product warranty.”

Amazon, Apple, and Google: is this the subtle shape of things to come?

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Hadrian J. Sammut is a business solutions adviser with the local firm of iMovo, which specialises in ‘Know Your Client’ assignments based on Microsoft Dynamics CRM and Qlikview business intelligence tools.