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Old 08-09-2013, 03:20 PM   #1
Alexander Turcic
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DOJ reiterates need for Apple punishments; gets support from Kobo

For those of you who have spent the last few days in an isolation chamber, the DOJ is proposing an injunction prohibiting Apple from making pricing deals for five years and allowing e-book app vendors to link to their own stores for two years. Meanwhile, the five publishers who had previously settled in the e-book pricing case, ganged up once again, this time with a legal brief opposing the proposed penalties against Apple. Though this might have backfired a little. The Verge reports:

Quote:
One thing's clear: the DoJ isn't pleased to see the publishing industry again uniting so soon after the major case. "There is reason to believe the publisher defendants may be positioning themselves to pick things back up where they left off as soon as their two-year clocks run," the letter says. This in and of itself justifies Apple's five-year penalty, which Buterman says will "ensure that Apple (and hopefully other retailers) can discount ebooks and compete on retail price for as long as possible."
Kobo shows that it could have been done differently. As Publishers Weekly notes today:

Quote:
Meanwhile, the DoJ got some support for its proposed final order, in the form of Amicus briefs from Kobo, and from The Consumer Federation of America.

Notably, Kobo’s brief in support of the DoJ puts it odds with its retail partner—the American Booksellers Association, through which Kobo facilitates e-book sales. [...]

In its brief, however, Kobo says the DoJ injunction would help Kobo and the indies—especially through the requirement that Apple allow e-book retailers to link to their own e-bookstores for two years without paying a commission to Apple on sales.
Which is not really a surprise given that Kobo has invested quite some time and money lately in renovating their online book store. The PW article cites some convincing numbers showing how Kobo suffered from plummeted sales after Apple introduced its in-app store rules.

Last edited by Alexander Turcic; 08-09-2013 at 05:05 PM.
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Old 08-09-2013, 04:06 PM   #2
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Old 08-09-2013, 04:27 PM   #3
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The Associated Press is reporting that Judge Cote denied Apple's request to suspend the ruling. Tick tock, things are moving along.

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A judge on Friday refused a request by Apple to temporarily suspend her ruling that it violated antitrust laws by conspiring with publishers to raise electronic book prices in 2010.

Judge Denise Cote, ruling from the bench in Manhattan federal court, declined to withdraw the effect of last month's ruling while Cupertino, Calif.-based Apple Inc. appeals.
http://bigstory.ap.org/article/ny-ju...t-e-books-case
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Old 08-09-2013, 04:54 PM   #4
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Old 08-09-2013, 06:12 PM   #5
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While the publishing industry apologists harp about Amazon, it is Kobo, Sony and Nook that are foremost among the many epub vendors that stand to gain from the proposed remedies.
Nook, for some reason, seems unwilling to step up and admit that they are the biggest victim of the conspiracy but at least Kobo is willing to stand up for their own best interests.
Now if only the BPHs realized how counterproductive their stance is and actually started looking after their own long term interests...
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Old 08-09-2013, 08:14 PM   #6
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Now if only the BPHs realized how counterproductive their stance is and actually started looking after their own long term interests...
Their long-term financial interests, or their long-term interest in being proud of how they treat employees and authors, and of the books they publish?

I realize that if they go belly up, they can't produce better titles. But there's the middle ground of accepting modest profits or going non-profit, which is where many publishers already are.
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Old 08-09-2013, 08:16 PM   #7
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I believe that the CFA antitrust lawyer stated it perfectly.

Quote:
The CFA, meanwhile, is represented by noted antitrust lawyer David Balto. In its brief, Balto and CFA attorneys argue that DoJ’s proposed remedy “is not unusual by comparison to prior antitrust remedial orders,” and is appropriate in light of “the significance of the violation, the gravity of the consumer harm, and defendant’s continued denial.”

Full adoption is warranted, CFA stresses, because “the underlying conduct was willful and [Apple] remains unrepentant.” The brief also notes that the DoJ proved “conduct of a sort often prosecuted criminally, that was knowingly orchestrated by defendant’s highest management.”

Failure to take “strong remedial steps” in a case involving such egregious conduct, the brief concludes, would send a message that “antitrust compliance can be an afterthought and that antitrust penalties are merely a cost of doing business.”
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Old 08-10-2013, 06:08 AM   #8
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Their long-term financial interests, or their long-term interest in being proud of how they treat employees and authors, and of the books they publish?

I realize that if they go belly up, they can't produce better titles. But there's the middle ground of accepting modest profits or going non-profit, which is where many publishers already are.
Yeah, the readers don't fit very nicely into the BPH's interests.

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Old 08-10-2013, 06:59 AM   #9
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Gosh, I am shocked, shocked I tell you to find that the lead DOJ anti-trust lawyer thinks that Apple should be punished even harsher, or to find that the trial judge who wrote the majority of her decision before the trial even started declined suspend the ruling.

Right now, I think that Apple is looking forward to the appeal process where some judges a little less invested in the decision can take a look at it.
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Old 08-10-2013, 07:01 AM   #10
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or to find that the trial judge who wrote the majority of her decision before the trial
No matter how many times you write that, it doesn't make it true.

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Old 08-10-2013, 07:06 AM   #11
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Their long-term financial interests, or their long-term interest in being proud of how they treat employees and authors, and of the books they publish?

I realize that if they go belly up, they can't produce better titles. But there's the middle ground of accepting modest profits or going non-profit, which is where many publishers already are.
If people can't make money on publishing books, there won't be many books published. The reality of the publishing world is that only the top 10% or so of books actually make money and basically support the ability to publish the other 90% of books. Telling publishers that they need to become non-profit or be satisfied with a modest profit just means less books for the consumers to buy.

Tell me. Is there anyone here who would honestly say they would be happy if their employer tells them that they ought to work for free or be satisfied with a modest salary? I suspect that the vast majority would start looking for another job. Why should book sellers, publishers and authors be any different?
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Old 08-10-2013, 07:12 AM   #12
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No matter how many times you write that, it doesn't make it true.

Graham
Well, it is true, no matter how many times you deny it. She wrote the first 122 pages of her 160 page decision before the trial started.

http://tech.fortune.cnn.com/2013/07/...erdict-appeal/
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Old 08-10-2013, 07:14 AM   #13
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Tell me. Is there anyone here who would honestly say they would be happy if their employer tells them that they ought to work for free or be satisfied with a modest salary? I suspect that the vast majority would start looking for another job. Why should book sellers, publishers and authors be any different?
Straw man. The case was about illegal collusion, not publishers individually setting higher prices for their books.

Books will be published, following more efficient routes to the market. Just like any other business, the big publishing houses have to react to changes in the marketplace and compete.

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Old 08-10-2013, 07:32 AM   #14
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Well, it is true, no matter how many times you deny it. She wrote the first 122 pages of her 160 page decision before the trial started.

http://tech.fortune.cnn.com/2013/07/...erdict-appeal/
Rubbish. From the the first paragraph of the article you quoted (my emphasis):

Quote:
The first 122 pages of the 160-page ruling against Apple (AAPL) that U.S. District Judge Denise Cote handed down on Wednesday could have been written before the trial began.
You've said before that you've read the ruling. You'll realise therefore that the first 122 pages make reference to things that occurred during the trial from p6 onwards, mainly in footnotes. You'll also note that the structure of the document is to cover the history leading up to the launch of iBooks in the first 100 pages, followed by 12 pages of analysis of the legal standards against which the case should be judged, before getting into the analysis of the evidence.

So, sure, the first 112 pages or so 'could have been' written before the trial, based on the known history and the detailed evidence presented to the judge as part of the trial before the actual courtroom sessions, but there's no evidence that they actually were written at that point, as you contend.

And even if they were, that wouldn't negate the reasoning presented in the remaining 47 pages of the document.

The judge's pre-courtoom deliberations and tentative reading of the evidence, as requested by both Apple and the DOJ, are just as valid a part of the overall trial as the subsequent courtroom arguments.

She was handed the evidence in detail. She formed a preliminary opinion on that evidence, as requested by Apple and the DOJ, and then proceeded to the courtroom with her 'homework' done.

Graham

Last edited by Graham; 08-10-2013 at 07:37 AM. Reason: spelling.
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Old 08-10-2013, 07:34 AM   #15
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Straw man. The case was about illegal collusion, not publishers individually setting higher prices for their books.

Books will be published, following more efficient routes to the market. Just like any other business, the big publishing houses have to react to changes in the marketplace and compete.

Graham
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