Full Text of Montgomery County Md eBooks Resolution

7/27/2019 Full Text of Montgomery County Md eBooks Resolution

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AGENDA ITEM #2DJuly 23,2013ACTION

MEMORANDUM

July 19,2013

TO: County CouncilFROM: Vivian Yao, Legislative AnalystrvfSUBJECT: Action - Resolution to urge equitable access to e-books for Montgomery CountyPublic Libraries

On July 16, the County Council introduced a resolution ( 1-2) supporting equitable accessto e-books for Montgomery County Public Libraries (MCPL). Sponsored by Council VicePresident Rice, Councilmember Leventhal, Council President Navarro, and CouncilmembersAndrews, Ervin, Berliner, and Riemer, the resolution supports equitable access to e-books at fairprices for MCPL. The resolution urges the Maryland General Assembly, the U.S. Congress, theU.S. Department of Justice, and the Federal Trade Commission to examine policies and pricingrelated to public library access to e-books and seek any appropriate remedy so that County libraryusers may access materials in a reasonable and non-discriminatory manner. The Health andHuman Services Committee discussed issues related to the procurement of e-books at itsNovember 29 review of the MCPL Strategic Plan. The County Executive has also expressed hissupport for the resolution (3-4).The demand for e-books in MCPL has increased dramatically in recent years, reflecting atrend in other areas of the country. MCPL reports that there has been an 88% growth in e-bookcheckout between 2010 and 2011, and 87% growth in the demand between 2011 and 2012. TheCouncil approved additional funding of $300,000 in the FY14 operating budget for MCPL toaddress customer demand for e-books. However, e-book pricing and distribution policies haveplaced strain on the MCPL budget and limited the access of e-books to library patrons.The changes to e-book pricing and policies governing sales to public libraries are describedby Dylan Scott in his article "Can Libraries Survive the E-Book Revolution?" (5-8) Before the

advent of e-books, publishers allowed libraries to purchase print books at a discount and turned anacceptable profit. Libraries purchased new releases and replacements for worn-out books, andcould lend copies as many times as the condition of each book allowed. With e-books, however,some publishers limit the particular e-books that can be purchased or do not sell to all libraries.Some publishers set limits on the number of loans that an e-book license will support, e.g., 26uses. Some publishers simply charge a premium on e-books licenses for public libraries, in somecases over six times the amount of a license to a regular consumer for the same book.


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Publishers have explained that they are trying to ensure the sustainability of the industry;cover increased costs of doing business, i.e., frequent revising and correcting of e-books,providing e-books in various electronic formats; protecting e-books from pirating and copyrightinfringement; and making up for lost income resulting from the re-sale of old titles to librariessince e-books do not wear out or deteriorate. Mr. Scott also states that the rise of e-publishing"has given the industry an opportunity to reevaluate its traditional way of thinking about libraries,which was that they encouraged reading and thus benefited publishers. Now the big companiesare concentrating on direct sales to the customer."

During the Council's introduction of the resolution, Councilmember Floreen expressedinterest in soliciting the views of Montgomery County writers on the issue of equitable access ofe-books for public libraries. Local author David Stewart has provided comments to the Council(9-10) that generally support different pricing and access policies for libraries than for regularconsumers because these practices support fair compensation to authors.Council staff notes that the resolution would presumably call for examination of allcompeting interests in this debate, including the economic sustainability of the publishingindustry, the fair compensation of authors, and the importance of public access to information

through libraries in sustaining an educated, literate, and democratic society.

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Resolution No.: Introduced: July 16,2013 Adopted: COUNTY COUNCIL

FOR MONTGOMERY COUNTY, MARYLAND

By: Council Vice President Rice, Councilmember Leventhal, Council President Navarro, and Councilmembers Andrews, Ervin, Berliner, and Riemer

SUBJECT: Equitable access to e-books for Montgomery County Public LibrariesBackground

1. Montgomery County Public Libraries (MCPL) serve 721,385 (as of the end ofFY 2012)cardholders from all parts of a large, diverse county.2. MCPL strives to deliver materials in all available formats to meet the interests andrequirements of those patrons.3. The demand for e-books in Montgomery County is increasing exponentially. There wasan 88% gro\\tlh in e-book checkouts between 2010 and 2011, and an 87% growth indemand between 2011 and 2012. The trend shows no signs of slowing down.4. Through actions of the County and its budget process, the Council approved an additional$300,000 in the Fiscal Year 2014 MCPL operating budget to address customer demandfor e-books. This budget item supports the MCPL's Strategic Goal #1: "StrengtheningOur Communities' Passion for Reading, Viewing and Listening by diversifying ourcollection to meet the evolving needs of our residents."5. The needs ofMontgomery County library users, as with users of libraries around thecountry, are being severely hampered by the actions of the book publishing industry.According to the March 4, 2013 pricing comparison from the Douglas County, Colo.,library, which compiles such statistics monthly, the top book on the New York Timesfiction best seller list is unavailable to libraries in e-book format. Nine of the top 15books on the fiction list are not available to libraries as they are to consumers. The #5fiction book, A Week in Winter, by Maeve Binchy, costs libraries $80.85 to license,while consumers pay $12.99 to license use of the same book. These prices place a strainon the MCPL budget and limit the access of e-books to library patrons.

6. The American Library Association, ofwhich MCPL is a member, has consistently protested this discriminatory behavior by publishers.


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Action

The County Council for Montgomery County, Maryland approves the followingresolution:The Council believes that patrons of the Montgomery County Public Librariesshould have equitable access to e-books at fair prices.Therefore, the Council urges the General Assembly, the U.S. Congress, the U.S.Department of Justice, and the Federal Trade Commission to examine this issue and seekany appropriate remedy so that County library users will have the access to materials in areasonable and non-discriminatory manner.

This is a correct copy of Council action.

Linda M. Lauer, Clerk of the Council

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Yao, VivianFrom: Ayers, BonnieSent: Thursday, July 18, 2013 11 :19 AMTo: #PIO.Releases; #PIO.Releases.SpanishSubject: Leggett Urges Action on Local, State, Federal Levels To Bring Down E-Book Purchase Prices forPublic Libraries; Commends Council Resolution Seeking State, Federal Investigation

For Immediate Release: July 18, 2013 Leggett Urges Action on Local, State, Federal Levels To Bring Down E-Book Purchase Prices for Public Libraries; Commends Council Resolution Seeking State, Federal Investigation

County Executive Ike Leggett is urging residents to express -- to all levels ofgovernment -- their opposition to the pricing tactics employed by book publishersthat result in public libraries paying more for e-books than general consumers."We need to act now to end this discriminatory practice and bring fairnessback to the cost of licensing e-books for public consumption at our public libraries,"Leggett said."We have a very strong lobby for public libraries in Montgomery County," Leggettstated, "and I urge our advocates to call attention to this issue."

Leggett expressed support for a County Council resolution, to be voted onnext week, requesting a Federal-level investigation of the issue and urging actionfrom residents.

"I commend the County Council," said the Executive, "on its pendingresolution urging the [Maryland] General Assembly, the U.S. Congress, JusticeDepartment and the Federal Trade Commission 'to examine the issue and seek anyappropriate remedy so that County library users will have the access to materials in areasonable and non-discriminatory manner.'"

Over the past four years, the demand for e-books in Montgomery CountyPublic Libraries has increased by an average of 87.5 percent. Leggett noted that"We as a government have a responsibility to ensure that the customers who use ourlibraries have ready access to materials in the formats they are most requesting. Yet,the pricing set by the book publishers for e-book titles is so high and out of line withthe cost of other materials that it can become a financial burden for jurisdictions tokeep up with requests from the public."

In Leggett's FY14 recommended operating budget, sent to the Council inMarch, he included $200,000 in the Public Libraries budget solely for the purchaseof e-books to help meet the growing demand of the more than 720,000 cardholding

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customers."Recognizing, just as I do, the importance and popularity of our public

libraries, the Council added another $100,000, bringing our commitment to$300,000," Leggett said. "But, considering that our libraries often pay $75 or higherfor an e-book, three times more than consumers would pay to purchase a particulare-book, can our seemingly generous allocation meet the demand from ourcustomers?"

Montgomery County Public Libraries Director Parker Hamilton said, "Anyand all attention that can be drawn to the issue of inequitable e-book pricing is mostwelcome. If not addressed by our elected representatives at all levels, this practicewill adversely affect one of the oldest public services that government provides free access to life-long learning for people of all ages and backgrounds."

###

Media contact: Bonnie Ayers, 240-777-6507

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t'age 1 or.q.

Can Libraries Survive the E-Book Revolution?Facing higher prices and limited access to e-books from the major publishers, one man has inspireda national movement to promote smaller, digitally based presses and self-published authors.BY: Dylan Scott I July 2013

More than 20 years ago, when Jamie LaRue took over the library system in Douglas County, Colo., fewpeople outside that patch of Rocky Mountain wilderness south of Denver knew who he was. A lot ofthings were different back then. Public libraries were still considered pillars of the community and themost important stop for any local resident looking for the latest from the printed word. Commercial e-bookswere still a fantasy in the mind of some anonymous Silicon Valley geek. The rules of the game betweenlibraries and publishers had been established long ago: Discount prices and generous access were thenorm, and there was every reason to believe that the status quo would continue, ad infinitum.

But it didn't.Instead, the e-book revolution has overturned the whole infrastructure upon which libraries depended. From2011 to 2012, the percentage of Americans who owned an e-book reader leapt from 18 to 33 percent, arapid climb from 6 percent in 2010. Attempting to accommodate this shift, more than three-quarters of U.S.libraries allow their customers to check out digital books, but they've encountered fierce resistance in accessand pricing from the major publishers. Some won't even sell e-books to libraries. If libraries are able toobtain mainstream e-books at all, those sales almost always come with onerous conditions and high prices,especially compared to the traditional discounted rates libraries pay for hardcover copies.Read the rest of this month's magazine issue.The situation has left libraries looking desperately for a way to make e-borrowing sustainable for customersin the future. But they have little negotiating power other than an altruistic appeal to the establishedrelationship between library and publisher, both working toward the goal of a more literate nation. Thebottom line is that libraries need to have e-books for their readers to check out, because that's how peopleare going to read in the future. If they don't have the goods, then what will a library be useful for a decadefrom now?Enter LaRue, who oversees seven libraries in what is now a suburban county of 285,000 people, but isbuilding a nationwide movement based on his principles. He talks about bypassing the "Big Six" New Yorkpublishers, or at least leaving them behind and setting his sights on the next publishing wave: smaller,digitally based presses and self-publishing authors. He wants to transform the library from a place whereyou go to find a New York Times bestseller to a local incubator fostering homegrown writing talent. If the bigpublishers want to cut libraries out, that's fine, he says. He's going straight to the people.Want more education news? Cl ick here."This is the most exciting time to be a librarian in the history of mankind," he says. "There has never beforebeen this profusion of writing. There's this incredible opportunity that we have if we step up to the table, ifwe're willing to reinvent ourselves, i f we are bold. But if we are not willing to do those things, we will bemarginalized. As time goes on, we'll become less and less relevant. At some point, we'll perish. It's adapt ordie."LaRue's ideas have inspired an upheaval in the library and publishing worlds. Libraries from California toMassachusetts are fitting his design to their own systems. Mere mention of his name attracts audible sighsand knowing nods from top executives at some of the biggest publishers in the world. Whether he and hisphilosophy succeed or not could determine the public library's future. That's how many librarians view thestakes, anyway. If he's wrong, the library could fade into obscurity, a relic of the pre-digital age. But if he'sright, and a growing number of acolytes believe he is, it could still thrive in an era when hardback bookshave gone the way of illuminated manuscripts.Before the arrival of e-books, the library business model for purchasing and distributing print books wasset in stone. There were intermediaries between the publishers and libraries, companies like the giantdistributor Baker &Taylor, but there was little tension. Libraries purchased books at a comfortablediscount, sometimes as much as 40 percent off the retail price, and publishers earned an acceptable profithttp://www.governing.com/templates/govJ'rint_article?id=2133 5500 1 7/1712013
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by selling them new releases and replacements for worn-out books. A library bought a copy of a book, and itcould lend the copy as many times as the binding would hold; if the book was in high demand, the librarycould buy more copies. Affordable prices meant a library could build a huge reservoir of material for itsreaders.The digital market, however, has been built from scratch in the last few years, and all those old norms havedisappeared. There are still intermediaries that transmit digital files from the publisher's online collection tothe libraries -- one company, OverDrive, owns an 85 percent market share -- but little else is the same. Firstof all, not every major publisher is selling its products to any library that wants them. Several, includingSimon & Schuster, Macmillan and Penguin, either don't sell e-books to libraries at all or have only begun todo so through pilot projects that work with select libraries, usually concentrated in New York. This leaves outthe nearly 9,000 other libraries spread throughout the rest of the country.Even if publishers do sell to libraries, they've restructured the rules. HarperCollins, for example, sets a limitof 26 loans on each e-copy; after that limit is reached, the library has to purchase a new copy license.Random House hasn't established such restrictive conditions and makes its full e-catalog of 46,000 titlesavailable to libraries, but the price for each copy is often four or five times ($85 is the upper limit) what thecompany charges for physical copies.While their business model is being upended, libraries, along with the rest of the public sector, are enduringthe aftershocks of the Great Recession. Library spending in the U.S. dropped 8 percent in 2013, largely aresult of government funding cuts, continuing a decline that started with the economic downturn. So at thesame time that libraries are navigating unprecedented financial challenges, they must contend with a newmarketplace that they feel is rigged against them."The situation has basically become: It's going to cost you so much that you can't afford to buy it," saysLaRue. "That means we can't buy as many things. Our citizens are now being denied things that they usedto be able to have."Publishers say they are just trying to make sure their industry is sustainable for the long haul. A whole hostof new variables in the digital market, they argue, makes it different from the traditional one -- and moreexpensive. E-books have to be protected against pirating and other copyright infringement. Digital books areconstantly being corrected or revised in a way that physical books never could be, plus they must beadapted to various formats from iPad to Kindle to Nook to smartphones, and all that coding costs money.Virtual copies never wear out the way physical books do, and a significant portion of publishers' incomeused to come from reselling old titles to libraries to replace deteriorating inventory.But most fundamentally, it seems, the rise of e-publishing has given the industry an opportunity toreevaluate its traditional way of thinking about libraries, which was that they encouraged reading and thusbenefited publishers. Now the big companies are concentrating on direct sales to the customer. AlisonLazarus, president of the sales division at Macmillan, acknowledges her company has focused on the retailmarket as e-books have taken off. It has treaded lightly in selling e-books to libraries. Only this March did itlaunch a pilot program for library sales of 1,200 titles from one of its crime fiction imprints."Libraries always talk about how they're a venue for discovery, for people to learn about authors. I believethat in theory, but I don't know that there's any hard evidence," Lazarus says. She also argues that goingdigital has erased old barriers for people borrowing from a library, such as the necessity of getting a librarycard and physically going to the library building to check out a book, and that might mean library lending willcut into publishers' profits more than it did in the past."Our concern is that the more e-Iending becomes available ... what would have in the past been a salebecomes a borrow," Lazarus says. "Over time, that would be extremely detrimental to the health of thepublishing industry."For the moment, the industry, thanks in large part to the digital market, is showing few signs of sickness. In2008, e-book sales represented on average about 1 percent of a publisher's revenue, according to a recentreport by the Association of American Publishers. That share ballooned to 23 percent in 2012, accountingfor $1.5 billion in sales. The overall industry grew 6.2 percent in 2012, up to $7.1 billion in revenue.In a way, that remarkable growth might validate the industry's apparent marginalization, intentional or not, oflibraries. E-books seem to be doing just fine without them. So while publishing executives are quick to ( ' ;

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emphasize, as Lazarus does, that they still appreciate the value of libraries, the libraries themselves aremore skeptical."I frankly think in some cases they just see the opportunity to make more money," says Maureen Sullivan,president of the American Library Association (ALA), who has personally participated in negotiations withpublishers. That's the American way, of course; as Alan Inouye, director of the ALA's Office for InformationTechnology Policy, puts it: "People are not required to sell you things at all or at terms that the consumerlikes."These contentions have led to robust, sometimes tense, negotiations between libraries and publishers inrecent years. Representatives from the ALA have met with top executives of the Big Six publishers at leastfive times in the last year. Some compromises have been made -- Macmillan's new pilot program, forexample -- but the underlying issues remain unresolved.I f laRue has his way, though, it might not matter if they are. He surveyed this new world as director of theDouglas County Libraries and saw an opportunity to move in a new direction. He recalls looking at TheNew York Times bestseller list and seeing that a growing number of the books on it were being solddigitally. He noticed that self-published authors had begun creeping toward the top of bestseller lists (thisMarch, a self-published book topped the Digital Book World E-book Best-Seller List for the first time). Someof the most successful independent publishers, those outside the Big Six, were increasing their salesexponentially year over year, and that growth was almost exclusively driven by the digital market.Most important, more and more people started coming to his seven libraries, which receive 2 million visitsannually, and asking about e-readers and the possibility of checking out digital books. The supply wasn'table to keep up with the demand, because his libraries faced the same fiscal pressures and burdensomerestrictions as their peers across the country."I realized we needed to do something," laRue says. "The vendors were screwing us." In December 2010,with all of these ingredients mixing in his mind, he had a moment of clarity. As with the music industry beforeit, a common analogy in these conversations, he decided that the publishing industry's future didn't rest withthe legacy conglomerates that had dominated it in the past. Its strength resided in the independent pressesand self-publishing writers who had seized the opportunity that e-books offered: the democratization ofpublishing. Libraries, he reasoned, needed to harness that creative outburst. He devised a plan to do it.It was remarkable in its simplicity: laRue decided to build a digital warehouse and contracting system, whichwould allow his libraries to purchase directly from smaller publishers and authors, cutting out the Big Six andOverDrive, which would mean lower prices. In January 2011, Douglas County Libraries purchased Adobesoftware that for $10,000 would serve as the backbone of the new system, safely transferring files from theprovider to the library to the reader. laRue wrote "Dear Publishing Partner" letters, setting simple yet firmexpectations for how the content would be handled and eliminating the restrictions that accompanied themajor publishers' products. The whole enterprise cost $200,000, but laRue says the libraries have alreadysaved that much in a year because the prices they're paying for the independent and self-publishedmaterials are much lower, up to 45 percent below retail.The system went live in February 2012, and laRue went to work finding partners. They soon floodedDouglas County's digital shelves. The libraries have so far purchased e-books from more than 900 smallerpublishers and hundreds of individual authors. They make up 21,000 of the 35,000 titles in his virtualcatalog. The rest come from the major publishers, sold through intermediaries at much higher prices. Thosemainstream titles are still more popular with readers, making up 65 percent of the county's loans, but it'sclear that the appetite for the independent and self-published content is growing.Outside Douglas County, laRue's ideas have even earned their own acronym: the DCl model. Aconsortium of more than 250 California libraries is on the verge of rolling out a similar system. The HarrisCounty Public Library, which serves the Houston area, has launched its own pilot project based on the DClprinciples. laRue gave the keynote address at a May 2012 conference hosted by the Massachusetts LibrarySystem, which represents the state's 1,700 libraries, and exactly one year later, the group established alimited DCl-style prototype with 50 participating libraries. The plan is to expand it statewide in 18 months,which would make it the largest victory yet for laRue'S vision."Jamie is such a leader. The passion is very clear. You hear how important this is to him. He inspired us to _move forward," says Greg Pronevitz, executive director of the Massachusetts Library System. "The library's r::(]http://www.governing.comlternplates/gov -print_article?id=213355001 7117/2013
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future is becoming more and more electronic, so it is essential that we work this out. We've got the wholelibrary community working toward it."The Big Six publishers are watching the DCl movement closely. Skip Dye, vice president of library andacademic sales at Random House, says he has talked privately with laRue. While he has some concernsabout every library's ability to adopt a similar model, Dye says he's "very interested" in how it performs as itbecomes more widespread. "We know what they're doing. We're very excited about what they're doing," hesays. "We'd really love to see them come up and be able to handle this ... but the question is whether this issustainable for them in the long term."Having lit this fuse, laRue is turning his attention toward what he sees as the next frontier: librariesthemselves as publishers. Now that Douglas County has the content management system for its directpurchasing project, he thinks it would be easy to turn that into a self-publishing portal. The library would bethe center of a local authors' society, connecting self-starters to copy editors, cover artists and e-bookdistributors, and transforming thousands of Word documents sitting idly on neighborhood desktops intopolished, professional products. laRue hasn't actually done this yet, but the idea is already attractingadherents. Officials at the Harris County Public Library say they're interested in eventually starting a similarproject.There's something circular about it, laRue says. Adversity that threatened to undermine the existence oflibraries entirely could ultimately lead to their reinvention as incubators for writing talent, creating newcontent for their own collections and reconnecting with their original purpose as stewards of the written word.And like it or not -- though he must not mind because he describes his own activism as "proselytizing" -laRue himself has become the face of the movement, the chief priest of a new faith."We're in the midst of a fundamental shift in the role of the public library," he says. "You're moving peoplefrom consumers of content to producers of content. If you want your library to become part of thisrenaissance, that's how you do it."

This article was printed from: http://www.goVerning.com/toPicS/education/goV-Can-librarieSsurvive_ebook_revolution.html

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Yao, VivianFrom: Nancy Floreen [[email protected]]Sent: Wednesday, July 17, 2013 9:52 AMTo; Yao, Vivian; Rice, Craig; Riemer, Hans; Jablow, Judy; Brodsky, ArtSubject: Fwd: Lending e-books through the library - the rest of the story

Sent from my iPadBegin forwarded message:

From: "David Stewart" Date: July 17,2013,8:58:01 AM EDTTo: Subject: Lending e-books through the libraryTraditionally, the publishing industry, and writers, have subsidized the publiclibrary system, a system that is undeniably socialist. A single library book,which may generate $2 in revenue for a writer, can be loaned out dozens oftimes. At least some of those borrowers were likely to have purchased thebook, but writers and publishers have been willing to forego that incomebecause of their largely sentimental wish to support public libraries. Manywriters have fond memories of libraries of their youths, where their love ofthe written word was nourished. Similarly, writers and publishers foregorevenues altogether in the making of recorded books fo r the blind.E-books, however, raise special problems. A library book will eventually become too tattered to continue lending. If it is a popular volume, the library wil l buy another. That never happens with e-books. They never degrade. They are perpetual. That harms writers directly. Different publishers have taken different approaches to the problem of library distribution of e-books. Some Simply refuse to sell e-books to libraries. Others charge premium prices fo r e-books. Others will license an ebook only for a specified number times it may be loaned out: fo r example, the license may expire after 26 times being loaned. These responses to the problem of library distribution of e-books are neither discriminatory nor wrong. They respond to a special problem presented by the lending of e-books for free. What other products in our world are given

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away for free? Does Microsoft give away its software? Does Exxon give awayits gasoline?Moreover, with digitization, the economics of the publishing industry are inwild flux. Authors' incomes are declining because authors earn less on ebooks than on physical books. Other negative forces are the disappearanceof retail outlets for books, not to mention the shrinkage and disappearance ofbook reviews in magazines and newspapers.Article 1, Section 8, clause 8 of the U.S. Constitution specifically provides for asystem of copyright protection for the creations of authors because theFramers recognized that a vibrant political culture requires that authorsreceive fair compensation for their work, and that the written word isuniquely vulnerable to being stolen. Books are the means for sharing themost important ideas of our time: in politics, in science, in history, in culture,and in the lives of our imaginations. If those who write books do not receivefair compensation -- as is true in modern Russia and China, where book piracyis pandemic - the book culture will shrivel and die, leaving a nation that ispoorer in ideas and understanding.David O. StewartP.O. Box 24/10801 Keswick St.Garrett Park, MD 20896301-466-8356davidostewart@gmail.comwww.davidostewart.comwww.washingtonindependentreviewofbooks.com
mailto:[email protected]:///reader/full/www.davidostewart.comhttp:///reader/full/www.washingtonindependentreviewofbooks.commailto:[email protected]:///reader/full/www.davidostewart.comhttp:///reader/full/www.washingtonindependentreviewofbooks.com

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