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[self-portrait]Scrivener's Error Law and reality in publishing (seldom the same thing) from the author's side of the slush pile, with occasional forays into military affairs, censorship and the First Amendment, legal theory, and anything else that strikes me as interesting.
31 January 2010

link to: 12:12 [GMT-6]

GBS Musings

 

Tangent: AmazonFail (version 3.21)

The Settlement (in essay form)
The Lawsuit (in essay form)

Depending on how one counts, this is either the second or third major AmazonFail arising from egotistical — and ultimately stupid and self-defeating — mass delistings of material by Amazon. A pox on all their houses; although Amazon bears the most blame for this, Macmillan is hardly blame-free.

Let's get the Macmillan problem out of the way first, because understanding it sheds an awful lot of light on other issues. Andrew Wheeler offers a useful introduction that, unfortunately, doesn't go far enough in assigning responsibility. First, one should note that Macmillan is willfully and misleadingly mislabelling its "new model"; leaving aside that it isn't at all new, it is not an agency model. It is, instead, a fewer-layers version of the present book retailing model, which is not a sales model: Instead, the "new" model is a single-layer consignment instead of a multilayer consignment. This does have some significant legal implications, particularly for taxation purposes and timing of payments... but, as important as those are, they are ultimately less important than the industry's refusal to accept that the Copyright Act of 1976 and the Bankruptcy Code of 1978 operating together fundamentally changed the legal nature of the author-publisher relationship.

Under the older law (the 1909 Copyright Act and 1898 Bankruptcy Act, respectively), an author-publisher arrangement was inherently a sale: Publication required ownership — even if fleeting — of the entire copyright. This language continues to pervade author-publisher agreements and arrangements, even though the fundamental change from unitary copyright to separable subrights should have resulted in a fundamental rethinking of contracts, economics, and virtually everything else. Combined with the formalized pro-creditor and pro-secured-interest provisions in the Bankruptcy Code, one would expect things to look rather differently, at least by now, thirty-two years after the enabling legal landscape changed irrevocably. Instead, Macmillan's position depends fundamentally on assuming full ownership and control of not just the rights actually transferred in publishing agreements with the authors, but of a full, unrestricted ownership interest in Macmillan's packaging of the author's intellectual property for market. Crucially, Macmillan could not maintain this position without having oligopoly power to exert — and we'll be returning to that shortly.

Nonetheless, most of the blame here goes to Amazon.30 It's actually fallout from a bad Supreme Court decision from a couple of years ago regarding ladies' leather accessories. (Sadly, this is about the closest we're going to get to "leather" in this whole discussion.) In Leegin,31 the Supreme Court overturned a 95-year-old decision holding that resale price maintenance agreements represent a per se antitrust violation, holding instead that they must be judged under the antitrust "rule of reason" doctrine. In practical terms, that means that a plaintiff complaining that a resale price maintenance agreement violates antitrust law can win if, and only if, the plaintiff hires outrageously expensive lawyers, and has a smoking gun, while the defendant hires a bottom-of-the-class graduate of a bottom-of-the-heap law school who never took antitrust law and has never handled an antitrust matter before.32 It doesn't matter for antitrust purposes that Leegin directly concerned only agreements to maintain a minimum price; antitrust law may be a tangled briar patch indeed, but the restriction is on agreements concerning any fashion of price restrictions.

I suppose that's all suitably theoretical and eyeglazing. Just what does it have to do with the Google Book Search settlement? In the simplest possible terms — so that even the legal staff and management at Amazon can understand — it demonstrates the direct antitrust-violating consequences of precisely the same arrangement as the settlement establishes for orphan works and other unclaimed works. Prettying that arrangement up with an illusory trusteeship concerns only the cosmetics and exact mechanism; it does not change the substance. This particular incident (that will, no doubt, be cleared up in a week or less, even if it takes longer than that for a public announcement) demonstrates that oligopoly power over distribution harms consumer choice. That is all that is necessary to state an antitrust claim, Leegin notwithstanding.

Too, this dispute also makes all too clear the oligopoly problem with putting the publisher class and the author class sharing from the same pot of rights. Bluntly, under the 1976 Copyright Act, there is no real question that the publishers' rights are subordinate to those of the authors (excepting, of course, works made for hire... in which the patron/publisher is wrongly defined as the author). If Amazon's and Macmillan's missteps since Friday result in Judge Chin seeing that even more clearly, and therefore severing the two improperly joined lawsuits and torpedoeing the GBS settlement as failing under Rule 23, then perhaps some overriding good can come of this fiasco. Even if all he does is reject the purported dispute resolution mechanism — a mechanism that fails under the Federal Arbitration Act, but that's another story entirely — that will at least slow things down enough for some wiser heads to speak up.

Update, early evening Amazon "blinked" and has backed down. Sort of. The statement that it made both reinforces my disdain for Amazon's legal staff and bats the shuttlecock of knowing and misleading mislabellings back over the net;33 it's Macmillan's turn again. To point at the most obvious example, Macmillan does not have a monopoly — economically or legally — on the particular products in question; its oligopoly power arises from overall market participation, not from the particular products. (As an aside, that's why it's legally suspect.) The only "monopoly" in question is the monopoly granted to the authors through the Copyright Act — and they weren't even consulted. Then Amazon committed yet another antitrust violation by turning this into a boycott action against nonparties to the dispute.

As Laura Anne Gilman (a knowledgeable former editor at Penguin) notes, Amazon's retreat is carefully hidden away, requiring one to actually be paying attention... and persistently misuses many terms with both legal and economic/business meanings. It is just inconceivable that nobody there at Amazon knows what "monopoly" means. OK, maybe not.


  1. I suppose Amazon's legal staff might argue that it's a power relationship with management that's the real problem... but that violates the old rule "do not ascribe to malice that which can be explained by ignorance or stupidity." Jason Stackhouse would probably be the smartest guy on Amazon's legal staff.

    ANDY BELLEFLEUR: It's interestin', because ... um ... this's the only videotape we found in Maudette's apartment.
    JASON STACKHOUSE: Well, I guess that means somebody took 'em all, right? Somebody didn't want you to see them?
    ANDY: Or somebody only wanted us to find this one? Because it supposedly clears him of a crime that maybe he came back later to commit?
    JASON (at first nods — then laughs softly): Aw ... come on, Andy. I'm not that smart!

    True Blood 1.02 ("First Taste") I hold Amazon's in-house legal staff in lower than minimal high professional regard; I've had too many dealings with them. And remember, y'all, if you decide this is defamatory, I can defend with the contents of those past dealings... and that might prove far, far more damaging.

  2. Leegin Creative Leather Products, Inc. v. PSKS, Inc., 551 U.S. 877 (2007), overruling Dr. Miles Medical Co. v. John D. Park & Sons Co., 220 U.S. 373 (1911).
  3. I do need to dispose of one comparison that some others are making. This may bear some superficial resemblance to disputes between cable companies and content providers, but one must recall that those are regulated monopolies... and there's nothing "regulated" about publishing whatsoever. Further, the regulation extends to actual pricing terms to customers.
  4. See note 30. Someone might try to excuse the legal staff by claiming that Amazon's over-the-weekend statement was made by the PR staff without vetting by the legal staff, so the legal staff shouldn't be blamed for legal inaccuracies contained in the statement. It's one thing to make such a claim for outside counsel; it's another entirely for in-house counsel, and it reflects poorly upon their performance of their professional duties in-house when this sort of thing appears to be routine — because it demonstrates pretty conclusively that the legal staff is not engaging with management.

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29 January 2010

link to: 13:11 [GMT-6]

GBS Update

 

The Settlement (in essay form)
The Lawsuit (in essay form)

Just a quick update on the fun and games: Yesterday (28 January) was the deadline for objecting to or opting out of the GBS Amended Settlement. I've had endless microseconds of amusement reading the submissions this morning, which largely track what I've been complaining about since the lawsuit was first filed.

The essential problem underlying this entire mess can be summed up in one word: Ego.

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link to: 11:20 [GMT-6]

There's Too Much Confusion Here

 

Well, I can't get no relief (streaming audio)

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27 January 2010

link to: 11:52 [GMT-6]

Read Some Gawdawful Rubbish Like You Always Do

 

Here's a tidy cover for this untidy sausage platter. Consider the potential evil of librarians (HT: Ann Bartow at Madisonian):

And now, lifting the lid:

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25 January 2010

link to: 13:09 [GMT-6]

Lazy Monday Afternoon Sausages

 

Well, not lazy, precisely; I've actually been doing other stuff while these rotted aged...

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22 January 2010

link to: 11:45 [GMT-6]

Liar!

 

One large internet sausage link (with bite-sized nuggets in it!) and a few others...

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21 January 2010

link to: 11:14 [GMT-6]

It Really Is Money That Matters

 

There was a reason that I put that particular video into yesterday's entry: Anticipation of this morning's opinion from the Supreme Court in Citizens United. The Court held (in a 5–4, archly partisan decision) that:

Distinguishing wealthy individuals from corporations based on the latter's special advantages of, e.g., limited liability, does not suffice to allow laws prohibiting speech. It is irrelevant for First Amendment purposes that corporate funds may "have little or no correlation to the public's support for the corporation's political ideas." All speakers, including individuals and the media, use money amassed from the economic marketplace to fund their speech, and the First Amendment protects the resulting speech. Under the antidistortion rationale, Congress could also ban political speech of media corporations. Although currently exempt from §441b, they accumulate wealth with the help of their corporate form, may have aggregations of wealth, and may express views "hav[ing] little or no correlation to the public's support" for those views. Differential treatment of media corporations and other corporations cannot be squared with the First Amendment, and there is no support for the view that the Amendment's original meaning would permit suppressing media corporations' political speech. Austin interferes with the "open marketplace" of ideas protected by the First Amendment. Its censorship is vast in its reach, suppressing the speech of both for-profit and nonprofit, both small and large, corporations.

Citizens United v. Federal Elections Commission, No. 08–205 (21 Jan 2010) (PDF), slip op. (syllabus at 5; internal citations omitted).

Although much of this summary of the reasoning seems perfectly reasonable, and indeed compelled, it nonetheless depends upon an unstated assumption that itself does not bear much scrutiny. The Court did not ask for the correct reconsideration of precedent; it's not Austin that creates the problem here, but Buckley. As I mentioned a while back, the supplementary question that they should have asked was this:

<hypothetical-question> For the disposition of this case, should the Court overrule Buckley v. Valeo insofar as it holds that expenditures and contribution of money and other resources constitute expressive speech protected by the First Amendment that may not be severely regulated for the express purpose of ensuring free and fair elections? </hypothetical-question>

It makes no difference to the "marketplace of ideas" whether the privileged, largely hereditary position of some market participants comes as a result of land grants from the king or differential wealth-accumulation grants from the elected sovereign; it's still a reification of a hereditary privilege, and therefore equally subject to scrutiny regarding what constitutes free exchange of ideas. It's not the expression that is at issue, but the means to communicate that expression. Although McLuhan may have claimed that "the medium is the massage" (later changed by many to "the medium is the message"), that statement of equivalence fails to acknowledge that context and content are a dynamic equilibrium; so does Buckley, and thus so did the Court this morning in Citizens United.

What I find most disturbing is that this particular error favors nonvoters: Corporations are not "citizens" for purposes of voting (except, perhaps, in Chicago... and the reality of modern campaign finance). Neither, for that matter, are unions. Instead, corporations and unions represent a broad delegation of authority by investors to managers (capital in corporations, labor in unions) who, in turn, are supposed to represent the limited best interests of that delegation. Whether one accepts the "nexus of contracts" model of corporations or uses some other model (and similarly for unions), the key point is that it is a delegation related to a limited interest; and in that sense, the real problem is not the "forced speech" meme that dominates the 180ish pages of opinions in this matter, but the Rawlsian problem of the initial position. In this instance, corporations (and unions) have a preferred initial position, and Citizens United fails to acknowledge that governmental preference for an initial position constitutes an intensely ideological prejudgment... which, in turn, is inconsistent with the values of free speech both explicitly and implicitly at the core of the First Amendment.

I do not claim that this means that one must disfavor corporate/union speech; I only deny that mere expenditure constitutes expressive speech, when mere expenditure (and the accumulation of resources to engage in mere expenditure) has been granted a favored initial position. And, in turn, that's why the artificial distinction requiring use of PACs and other artificial devices to separate expenditures on political speech from general treasuries (of artificial "persons") makes a great deal more sense than does the Court's action this morning. It's not a perfect solution, but it is the least-intrusive means... unless, of course, one denies that the favored initial position has even the capability of distorting the marketplace of ideas. In short, unless one would apply neoclassical microeconomics to a postmodern macroeconomic context without any regard for the problems created by monopoly and oligopoly pricing. To paraphrase Ursula Le Guin, free speech does not consist of handing one party a bullhorn and open venue in a public park while simultaneously allowing a party with inconsistent views to hold forth in a public lavatory near that park... without a bullhorn.

It really is money that matters, and Justice Kennedy could not possibly have made that more explicit without saying so in so many words. Authors — and, in particular, fiction-writers seeking commercial publication — should keep this in mind.

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20 January 2010

link to: 11:50 [GMT-6]

Frosty's Fate

 

Our six inches of snow (of course, down on Frat Row they're insisting that it was eight inches) is finally melting off here.

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19 January 2010

link to: 10:55 [GMT-6]

Monday Sans Caffeine

 

It's still Monday; at least it sure feels like Monday.

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15 January 2010

link to: 12:45 [GMT-6]

These Sausages Still Quite Grumpy

 

Surprised? You shouldn't be.

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12 January 2010

link to: 12:36 [GMT-6]

A Very, Very Angry Sausage

 


  1. At that, it's better than my first paycheck, all those years ago; thanks to President Carter's largest-ever-as-a-percentage military pay bump, I made almost as much as my girlfriend-the-Catholic-school-teacher. And speaking of grossly underpaid professions...
  2. To quote myself, from a little over a year ago:

    The USA Totalitarian Regime Activity Incitement To Obscure Reality Act, Pub. L. No. 107–56. They had to destroy civil liberties and representative democracy to save them. Riiiiiiight. What part of "protect and defend the Constitution of the United States against all enemies, foreign and domestic" did they not understand... aside from "all of it"?

    "Too Many Sausages, Not Enough Caffeine" (06 Oct 2008) (emphasis in original).

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11 January 2010

link to: 12:42 [GMT-6]

Sausages Seasoned With Scare Quotes

 

Another binary day (the six-digit date is all 0s and 1s). That said, it's Monday.

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04 January 2010

link to: 14:15 [GMT-6]

Post-Holiday Sausage Platter

 

Somewhat overdue post-holiday sausages... and, as much as nobody really wants to watch any sausage being made, you really don't want to understand how these were made. And stored. And shipped to you.

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02 January 2010

link to: 16:35 [GMT-6]

Meet the New Censors, Same As the Old Censors

 

Today's entry from the Department of Misplaced Priorities concerns The Who and the Super Bowl. And one-issue politics. And idiots who cannot manage to distinguish between "artist" and "artwork," or "performer" and "performance."

One supposed child-advocacy organization in Pompano Beach, near where the Super Bowl will be played next month, requested that the NFL disinvite The Who due to Pete Townsend's expired registration as a sex offender... which was imposed on him for the horrible, horrible crime of accessing a site that also hosted child pornography in the course of researching background material (some of which is implicit in Endless Wire, so it doesn't appear to have been just an excuse). In any event, Townsend's "sentence" of appearing on the registry expired a while back.

Meanwhile, halfway across the country, we've got some real abuse going on at Texas Tech. Even if you credited the most innocuous-sounding of Mr Leach's descriptions of his treatment of a college sophomore suffering from post-concussion syndrome, that treatment was medically inappropriate. There's a huge difference between the medically indicated "avoid sharp, loud sounds and bright lights" and shutting someone — alone — in a dark (not darkened) room. And if you've got someone who could suffer an unpredictable seizure or relapse, you simply do not shut them away from supervision in the first place!

Besides, we're talking about a bloody football game. Even if one credited the censors of Pompano Beach — which I do not — it's not exactly a stretch to question whether this is just a publicity stunt. We'd be much better off barring Michael Vick from football for abusing dogs (and actually serving time); or Ray Lewis from football for his conviction for obstruction of justice in a homicide investigation (and actually serving time); or any of at least a dozen others within the NFL... if, that is, one is going to assert "once a miscreant, always a miscreant and danger." The whole point of limited terms of punishment (or, in Townsend's case, a limited term of registration) is the anticipation that the punishment will change the behavior in question for the better. That this doesn't always work is beside the point.

Besides, after the Springsteen debacle last year and the 0.56sec of a middle-aged black woman's breast before that, does anyone really look to the Super Bowl's halftime show as an "endorsement" of anything?

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01 January 2010

link to: 20:57 [GMT-6]

Only Three of Them?

 

The 02 January Grauniad contains an absolutely wonderful, meaty slugline in the books section:

George W Bush, Dick Cheney, Donald Rumsfeld and Karl Rove have all chosen to publish their memoirs in 2010, thereby ensuring that at least three of them will be on the remainder piles by Christmas. The problem is that we already know what we are going to get: a badly written piece of fiction about how nothing went wrong and how if it did it was nothing to do with me.

John Crace, "The Books We Would Like" (emphasis added). Which leads, with more than a bit of glee, toward Clive James's classic of schadenfreude.

The book of my enemy has been remaindered
And I am pleased.
In vast quantities it has been remaindered
Like a van-load of counterfeit that has been seized
And sits in piles in a police warehouse,
My enemy’s much-prized effort sits in piles
In the kind of bookshop where remaindering occurs.

Clive James, "The Book of My Enemy Has Been Remaindered" (originally published in The London Review of Books in 1983).

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link to: 10:35 [GMT-6]

Mathematically Challenged

 

John Darkow, Columbia (MO) Daily Tribune, 31 Dec 2009 (resized)This is really a losing argument: The decade isn't over yet. I don't begin counting with "zero" (except, of course, my checking account...); hell, I don't really like counting from the inaccurately calculated birthdate of a mythological figure, whether starting with zero or one. Maybe it's just that I don't have a problem with reading from right to left. It's one of those arguments that isn't really worth winning, either.

In any event, I don't do annual review entries, or anything like that; the closest I come is the Turkey Awards, but — as ridiculous as reality tends to be — that's hardly a complete review. The only new resolution I have has to do with resolving to get the dishes done before dinner tonight; it's also the only one I could keep that doesn't involve sarcasm.

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