Of the many ways for publishers to combat copyright infringement, the one they have been loath to employ is  to sue the end user.  Because some downloaders may be ignorant kids or confused old people, going after them can be a public relations disaster, making the righteous plaintiffs look like corporate bullies and turning the defendants into  folk heroes. But there’s a limit to restraint, and after Bit Torrent users on the demonid.me website illegally downloaded a Dummies book almost 75,000 times, the publisher of the series reached it.

“John Wiley & Sons ,” reports Publishers Weekly, “filed a copyright infringement suit last week in the U.S. District Court for the Southern District of New York involving 27 ‘John Does’ the publisher claims are illegally copying and distributing its For Dummies books through the use of Bit Torrent file sharing software. At present, Wiley only knows the IP addresses and names of the information services providers of the John Does, but a company spokesperson said the intent of the lawsuit is to learn the names of the infringers so the company can contact them to work out a settlement.”

Though Wiley hasn’t actually sued anyone yet, that is clearly an option if one of the John Does becomes a John Screw You.  Lawsuits against end users have been brought by music and movie companies after they exhausted more moderate measures. (See Fileshare This) And though those actions have provoked great outrage by the victims and their libertarian defenders, some pirates have been put out of business and many end users have thought twice before clicking on Download.  But Wiley seems to be a rare instance of such an action in the book industry. For details read Wiley Goes After Bit Torrent Pirates.

For the full archive of E-Reads piracy postings, visit Pirate Central, especially Curtis Agency, E-Reads Launch Program to Neutralize Pirates

Richard Curtis

The Author’s Guild issued a sharp rebuke to publisher John Wiley & Sons for delivering a sort of Trojan Horse to authors.

The “horse” came in the form of a notice to authors who had contracts with newly acquired Bloomberg Press that the company was downwardly adjusting its royalty rates. Buried inside a saccharine (“We are pleased to inform you…”) salutation was a message that Wiley was conforming Bloomberg’s royalty to the rate stipulated in Wiley’s boilerplate – an “adjustment” that would pay the authors 24% and 43% less than they were getting.The authors were invited to sign an amendment.

The Guild’s outrage that authors were being snookered was expressed in unusually strong language. “The contract amendment, which provides no threshold level of sales for a work to be considered in print, essentially grants Wiley a perpetual right in an author’s book for a pittance. The 5% of net receipts royalty rate for print on demand editions is as lowest we have ever seen.” And “This is no way to do business. The letter is shocking from a publisher of Wiley’s stature.” “In our view, Wiley should tear up any signed letters it has received and start over, forthrightly explaining to its new authors the contractual changes it is seeking and how this may affect their income and their right to terminate their publishing contracts.”

We haven’t viewed Bloomberg contracts but assignment language in many publishing contracts guarantees that an acquiring company cannot change contractual terms without the express consent of the author. Signing the amendment would do just that, and the Guild wants to make sure authors know that it is a potential trap.

The full text of the Guild’s notice is below.
Richard Curtis
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Wiley’s Deceptive Letter to Bloomberg Press Authors: “We are pleased to inform you” that we will be slicing your royalties up to 50%

John Wiley & Sons acquired Bloomberg Press, the books division of Bloomberg, in March. At the end of April, it began sending a letter to hundreds of Bloomberg Press authors purporting to inform them “about a few differences in the accounting systems of Bloomberg and Wiley that it will be helpful for you to know about.”

While this sounds innocent enough, it isn’t. If signed by an author, the letter is actually a contract amendment that will materially and adversely affect the royalty rates of many Bloomberg Press authors.

Among other things, this contract amendment would:

1. Change royalty rates based on retail list price to rates based on net receipts. We’ve reviewed several Bloomberg Press contracts. All provide for royalty payments based on the retail list price (although we understand that there may be many based on net receipts). The Wiley letter misleadingly presents this to the author as good news: “We are pleased to inform you that we will be paying your royalties on the net amount received…” This change will, for many authors, effectively slice royalties by up to 50% for some book sales. Wiley’s letter fails to disclose that.

2. Empower Wiley to keep an author’s book in print with a lowball print on demand royalty of 5% of net receipts. (Bloomberg Press had no print on demand program.) The contract amendment, which provides no threshold level of sales for a work to be considered in print, essentially grants Wiley a perpetual right in an author’s book for a pittance. The 5% of net receipts royalty rate for print on demand editions is as low as we’ve seen.

We’ve asked an independent royalty auditor to review the affects of these contractual changes on royalty income. The royalty auditor found reductions of 24% to 43% using actual sales figures and applying Wiley’s amendments. (The precise affect of the amendments will vary by title, depending on particular categories of sales of the work.)

The Authors Guild strongly urges Bloomberg Press authors to not sign this letter without careful consideration. If you have received this letter, consult your agent or a publishing attorney or contact a lawyer in our legal department so you understand precisely how this amendment would affect your rights and royalties. Important: if you have already signed the letter and returned it to Wiley, contact our legal department immediately. Non-Guild members are welcome to contact us as well. All communications will, of course, be held in confidence.

This is no way to do business. The letter is shocking from a publisher of Wiley’s stature. In our view, Wiley should tear up any signed letters it has received and start over, forthrightly explaining to its new authors the contractual changes it is seeking and how this may affect their income and their right to terminate their publishing contracts.

The Authors Guild