Tuesday, September 29, 2009

Smashwords Signs Distribution Agreement with Sony, Helps Power Sony Publisher Portal

Sony and Smashwords today announced a relationship that significantly expands sales and readership opportunities for Smashwords authors around the world.

Sony has launched the Sony Publisher Platform, powered in part by Smashwords, that makes it easy for self-published authors and small publishers to sell their books at the eBook Store from Sony.

Concurrent with the Sony Publishing Platform relationship, Sony will soon begin distributing Smashwords ebooks.

This distribution relationship with Sony follows our distribution agreement with Barnes & Noble announced four weeks ago. Thanks to these relationships, any author, anywhere in world, can receive distribution from two of the three most prominent online ebook retailers in a matter of days.

This relationship has several positive implications for Smashwords authors and retailers, and for the future of publishing...

For Smashwords Authors:
This distribution is provided for FREE. No fees, no packages to buy, no hidden costs, no sales reps calling to sell you something.

The author/publisher receives 85% of the net, and we receive 15%
For Smashwords Retailers:
Smashwords is optimized to serve as a rapid publishing platform. We're an efficient onramp through which retailers can gain access to ebooks from small presses and self-published authors from around the world.

Because Smashwords serves as both an aggregator and distributor of original ebook content, retailers who partner with Smashwords gain immediate access to thousands of multi-format ebooks.

For the Future of Publishing:

For most of the last two centuries, a small handful of publishers controlled the means of book production and distribution. If you wanted to publish and sell a book, you worked through a publisher. Today, thanks to our humble little publishing service and the wonders of digital publishing, the means of ebook production and distribution are now available to all authors at no cost.

The current print publishing supply chain (how a book gets from publisher to reader) is woefully archaic and inefficient. Publishers take enormous risks to get a book out to market. Multiple gatekeepers stand between the publisher and reader, and each gatekeeper extracts their fee. With the new ebook supply chain we're helping to build, authors and publishers get closer to their reader. This cuts fat from the supply chain which is good for publishers, authors and readers alike.

Digital rights will become more valued by authors and publishers alike. I spoke with one successful midlist author a couple weeks ago who told me he plans to sell the print rights for his next book, but is considering retaining digital rights. He says he can do the ebook distribution on his own using Smashwords since we can get him essentially the same mainstream digital shelf space but at a royalty level twice the amount he'd receive from a commercial publisher.
How to Distribute Your Books with Sony (It's FREE!)

If you're not yet registered for Smashwords - Visit the Sony Publisher Portal and click the link to Smashwords. This will then take you to a co-branded signup page that will qualify your books to appear quickly at Sony. Next, carefully format your manuscript per the requirements of the Smashwords Style Guide, and review the Smashwords Distribution Information page for additional guidelines. Once your book is formatted per the Style Guide, your book will earn inclusion in the Smashwords Premium Catalog, which entitles you to distribution at Sony, Barnes & Noble, Fictionwise, and other online retailers served by Smashwords. It's quick and easy to qualify if you follow the simple instructions on the two pages above. Have questions? Use the customer support link at the top of any Smashwords page.

Current Smashwords authors and publishers - Your current Smashwords books will appear at the eBook Store from Sony in approximately two to three months. If your books have already been accepted into the Premium Catalog, there's nothing you need to do. Please visit your Dashboard's Channel Manager feature, where we will update expected ship dates once we have a firmer date.

We're excited about this relationship with Sony and we look forward to making it a smashing success for Sony and our authors and publishers.

What's next for Smashwords? Stay tuned.


Image credit: Courtesy of ReadWriteWeb

Monday, September 21, 2009

Speaking Tuesday about Future of Digital Publishing

I'm speaking on a panel Tuesday night in San Francisco about "Plugging into Digital Publishing," hosted by the Northern California chapter of the American Society of Journalists and Authors.

We'll discuss how the rapid changes in digital publishing will impact the lives of authors, journalists and other writers. Should be fun.

But don't come to see me - come to listen to my two fellow panelists. They'll have Robert Cauthorn, former VP of digital media for the San Francisco Chronicle and now the founder of CityTools, a social journalism site; and Ivory Madison, founder and CEO of the Red Room, a cool social media website for authors.

The event takes place at the Mechanics Institute Libary at 7:00pm, and is only $5 for ASJA members and $10 for non-members. To RSVP or learn more, visit the event listing at Mediabistro.

Much thanks to ASJA chapter president and Smashwords publisher, D. Patrick Miller of Fearless Books, for his kind invitation for me to speak.

Friday, September 11, 2009

Smashwords Supports Operation Ebook Drop

UPDATE:  On April 22, 2013, Operation Ebook Drop was discontinued.  My thanks to Ed Patterson for managing this great initiative, and thanks also to the thousands of Smashwords authors who participated.  This post will remain for historical purposes only, and may inspire others to do similar non-profit volunteer efforts.

The other day on the Amazon Kindle message boards, Smashwords author Ed Patterson met a U.S. soldier stationed in Iraq who wanted to download ebooks for his Kindle, yet Whispernet (Amazon's wireless download service) didn't work in Iraq.

Ed offered to email the soldier all 13 of his ebooks, for free. The soldier gratefully accepted.

Following the chance encounter with the soldier, Ed, himself an Army veteran, queried other indie authors on the Kindleboards message boards, asking if they too would be willing to offer their ebooks for free to troops deployed overseas.

In a matter of days, about twenty authors volunteered their books. Almost immediately, Ed began receiving additional requests for ebooks from soldiers and their families.

Ed and some of the authors started using Smashwords as the platform for distributing the ebooks to soldiers. Using the Smashwords Coupon Generator feature, authors are emailing 100%-off coupons to the soldiers.

I stumbled across the thread at Kindleboards yesterday, and was pleased to learn about Ed's project and see so many Smashwords authors participating. I immediately decided I wanted to get Smashwords more involved.

I got on the phone with Bill Kendrick, Smashwords' CTO (and chief magician), and together we brainstormed how we could help take Ed's campaign to the next level. Then late last night, Ed and I spoke on the phone for more brainstorming.

What began as "Operation Kindle Ebook Drop" has now morphed into something much bigger - "Operation Ebook Drop," in recognition of the multiple ebook-reading devices - cell phones, Kindles, Sony Readers, laptops, etc. - people use to read ebooks.

With Ed's encouragement, over the next week or so, we'll begin notifying our 1,300+ Smashwords authors and publishers about the opportunity to participate in Operation Ebook Drop.

The campaign, as we kick it off today, will roll out in stages.

For stage one, we'll encourage Smashwords authors to email Ed to opt-in to participate. On a regular basis, as Ed receives requests from deployed soldiers, he'll pass these requests on to the authors, who will directly email the soldiers hyperlinks to their book pages at Smashwords, along with Smashwords coupons which the troops can redeem to download the book in multiple formats, readable on any e-reading device.

For stage two, we'll look to create a more automated system of matching soldiers with ebooks, so that rather than the manual process described above, we'll create a catalog, either hosted at Smashwords or by the military, where service members can access the books.

The biggest challenge we'll face is authentication, but we think this can be achieved with some simple hyperlinks originating from within secure websites and intranets operated by the military. Ed has already started reaching out to different military branches to explore opportunities for collaboration on this important project.

How to Participate

Authors and Publishers - Operation Ebook Drop has been discontinued.  Here's how author's created coupons: To create a 100%-off coupon, log in to your Smashwords account and click on the Coupon Manager link. Ed will email you book requests, and then you simply email the soldier a hyperlink to your book page, and the corresponding coupon code. From your Dashboard, coupon redemptions will show up in your Sales & Payment History Report, and you'll also receive instant email notification. If you're not yet a publisher with Smashwords (why not?), you can learn how publish with us by visiting our How to Publish with Smashwords page.

Deployed troops - Operation Ebook Drop has been discontinued.  Here's how service members created redeemed coupons: All coalition military personnel deployed overseas who need multi-format ebooks are eligible. According to Ed, "If you're overseas and away from your home and loved ones, your dependence on reading might increase - and so we a gifting you ebooks for Kindle, Sony, iPhone, Blackberry etc." For free ebooks, please email Ed at the address above. Please note that the ebooks you receive may be shared with fellow deployed service members, but may not be distributed or shared elsewhere. Please also consider the coupon codes you receive as privileged information, not to be shared elsewhere. The participating authors are pleased to offer you their books.


Where to Learn More
Operation Ebook Drop has been discontinued.  The unofficial staging area for Operation Ebook Drop campaign is over at the Kindleboards message boards. Check it out, help out, and support the young men and women in uniform with some great reads! Operation Ebook Drop also has its own web site, here.

October 15, 2009 Update: Ed Patterson and I were interviewed at PodioRacket tonight with an update on Operation eBook Drop. Listen to the interview here.

October 31, 2010 Update: Ed Patterson informs me over 500 indie authors are now participating in Operation Ebook Drop. Awesome! Congrats to all.

April 22, 2013 Update:  Ed Patterson informs me that Operation Ebook Drop has been discontinued.  Ever since the pull-out of troops from Iraq, and now the wind-down in Afghanistan, the need for the service has diminished.  My thanks to Ed for his great volunteer effort, and thanks also to the thousands of Smashwords authors who supported this.

Sunday, September 6, 2009

Ebook Retailers to Faciliate Revolution in Book Publishing

Smashwords author Mary Anne Graham has published a whimsical allegory - complete with castles, knights and magicians - on her Quacking Alone blog in which she romanticizes our campaign at Smashwords to democratize publishing for the benefit of authors, publishers and readers.

She complements Barnes & Noble for partnering with Smashwords and calls on other retailers to do the same:

To my fans (come on, they exist – or at least I believe they exist the same way I believe in them) I say that all of my e-books – the historicals – Brotherly Love, A Faerie Fated Forever, A Golden Forever and A Six Sense of Forever, and my contemporary – E-mail Enticement, should be on Barnes & Noble and Fictionwise soon. I expect that other e-book retailers will come to share the wise vision of B&N and Fictionwise – the e-book retailers who understand the American thirst for choice and who are bold enough to embrace change rather than scurry out of its path.
Read Mary Anne's post here, or visit her Smashwords author page for a complete listing of her Smashwords titles.

Thanks for your support, Mary Anne! Stay tuned. We're just getting started.

Wednesday, September 2, 2009

Smashwords Profiled on GetPublishedTV

I was browsing the Twittersphere tonight and stumbled across this pleasant surprise.

Dale Beaumont, an Australian author and entrepreneur behind a very cool Internet television show I hadn't heard of before, GetPublishedTV, has produced an engaging nine minute video segment on Smashwords.

I'm flattered and tickled pink. I don't know what it is about Australians. So many of them on are the cutting edge of digital publishing and indie publishing - there's Mel Keegan, Alan Baxter, Joanna Penn and several others. I just want to give 'em all a hug. Special thanks to Joanna Penn of The Creative Penn for introducing Dale to Smashwords. And of course my thanks to Dale for the fabulous introductory profile of Smashwords!

SEPTEMBER 6 UPDATE: Dale has released a second video titled, "Marketing Your Book on Smashwords," explaining Smashwords from a publisher's perspective.

Enjoy!

Friday, August 28, 2009

Barnes & Noble to Distribute Smashwords Ebooks

Smashwords has signed an agreement with Barnes & Noble to distribute Smashwords ebooks.

As you might imagine, we're thrilled.

Until today, it was difficult if not impossible for many independent authors and publishers to gain such mainstream digital distribution. Now with Smashwords, virtually any deserving author, anywhere in the world, can receive broader distribution for their ebook.

We trust this is good news for Barnes & Noble as well because it makes thousands of new titles accessible to their customers. As any large retailer can attest, you want to carry the broadest possible selection for your customers yet it's virtually impossible to strike relationships with every individual author or publisher who walks in the door.

Even with ebooks, where an online store can offer virtually limitless online shelf space, it's still a challenge to sign on promising authors, because each business relationship requires technical setup, contracts, accounts payable systems, automated data feeds, sales tracking and more. We're an onramp that makes it easy for Barnes & Noble to accept and sell books from indie authors and publishers.

This is an important milestone for Smashwords. 15 months ago when we launched, we were an ebook publishing platform for self-published authors. Earlier this year we opened our services to publishers. And today, we expand our role to that of an ebook distributor as well.

Smashwords ebooks are now distributed via multiple online channels, including Smashwords.com, Stanza (the e-reading app used by 2 million + people on the iPhone/iPod Touch), Aldiko (for Google Android phones) and soon, the Barnes & Noble network (Barnesandnoble.com, Fictionwise, Ereader app, others).

If you're an author or publisher, I invite you to join with us today. We'll make it easy for you to publish and distribute your book to a worldwide audience. Our services are free. As the author or publisher, you keep up to 85% of the net (net = proceeds to Smashwords multiplied by .85). We offer you free social media-enabled tools to help you take control over your marketing and promotion.

As part of this development, we're creating a Premium Catalog, which contains Smashwords titles that meet the mechanical requirements for distribution. We posted a page to inform our authors and publishers about how to gain inclusion in the Premium Catalog: http://www.smashwords.com/distribution. Pardon our dust. These guidelines will surely evolve as we work out the inevitable kinks and bugs along the way.

Stay tuned. We're just getting started.

Ebooks on the Airwaves with Frank Gromling

I'm appearing tomorrow, Saturday, at 11:30am Eastern on the "Cover to Cover" radio show with Frank Gromling, aired on WNZF radio and streamed on the Internet.

We'll talk about ebook publishing trends, ebook publishing opportunities for authors and publishers, and Smashwords. You can listen to the show as it airs by clicking the LISTEN LIVE! link on the this web page. If you live near northeast Florida, you can tune in live at 1550AM and 106.3FM. After the show airs, it'll be archived here.

We taped the show Wednesday. Before I met Frank, I didn't know there was a mainstream radio show dedicated to the business of publishing. Each week, Frank examines all aspects of the book publishing world -- from what titles are hot, to up-and-coming authors, to how books are produced and marketed. His guests come from every aspect of the book world, including publishers, authors, illustrators, buyers and reviewers.

Frank is a strong advocate for independent publishing. He's the founder and publisher of Ocean Publishing, a small press that specializes in nonfiction titles about nature, marine life, environment and conservation. He's also past-president of the Florida Publishers Association, board member of the Independent Book Publishers Association, and author of Frank's Whales. Ocean Publishing has 18 titles in print and publishes four to five books a year.

Soon, we hope to welcome Ocean Publishing to the growing ranks of independent publishers who distribute their books on Smashwords.

Frank tweets on Twitter at @oceanpub and blogs at http://oceanpub.wordpress.com.

Thursday, August 20, 2009

Flat World Offers Smarter, Fairer Model for Textbook Publishing

The traditional model for textbook publishing is broken. High college textbook prices are threatening to render college unaffordable to many students and their families.

Textbook price increases have exceeded inflation for the past 20 years. The average textbook can run a student $100 or more, and especially for community college students, the price of textbooks can exceed the price of tuition.

As usually happens whenever business models get out of sync with what's fair and right, free market alternatives soon emerge to remedy the pain. In the case of textbooks, the solution has been the used textbook aftermarket and, more recently, textbook rentals.

Although used textbooks offer students lower prices, the aftermarket denies authors and publishers any additional revenue. In response, publishers accelerate publishing cycles by introducing new versions with little more changed than the page numbers. This hurts students, because they need to shoulder the increased expense. It hurts educators who need to modify their curriculum around the text (how often does a textbook on Microeconomics really need to change?).

Whenever you anger your customer, the customer reacts in creative (and predictable) ways. For some college students, the answer is piracy. College students can find free digital versions of nearly every college textbook, even new ones, via the underground file exchange services. For others, it's the used market.

The current model for textbook publishing is unsustainable for students, publishers, authors and educators.

A Smarter, Fairer Model for Textbook Publishing

Enter Flat World Knowledge. I first blogged about Flat World last year (As I disclosed then and I'll disclose now, my enthusiasm for them is not entirely impartial. I'm a Flat World investor, a former advisory board member, and the PR firm I own, Dovetail, represents them).

Flat World is a publisher of commercial open source textbooks. They offer their professionally produced, peer-reviewed books to students for free online, and then they monetize the books by offering low cost printable downloadable PDF ebooks, digital study aids, audiobooks and low cost print on demand versions.

Instructors are free to modify the texts to suit their exact classroom needs. They can cut chapters, add their own case studies, whatever they want.

Last semester, Flat World books were used by 1,000 students at 30 colleges around the world. The company announced this morning that this Fall semester, 40,000 students at 400 colleges will utilize Flat World texts in their classrooms. In an interesting twist not typical of the traditional textbook sales process, more and more instructors are requesting Flat World books without an intermediary interaction with a sales person. In short, Flat World is taking off, with important implications for publishers of all stripes.

There are several stories out about the news today, with more varied and independent analysis than I can provide here. For your reading and research pleasure, learn more about Flat World here:

BNET, by David Weir - Flat World Knowledge: A Disruptive Business Model

GalleyCat, by Jason Boog - Flat World Knowledge to Reach 40,000 Students This Fall

Publisher’s Weekly, by Jim Milliott - Number of Students, Colleges Using Flat World Knowledge Digital Texts Soars

ReadWriteWeb, by Dan Oshiro - Open Textbooks Gaining Ground: Flat World in 400 Colleges

Teleread, by Paul Biba - Flat World’s textbook sales show huge increase

VentureBeat, by Camille Ricketts - Open-source textbook co. Flat World goes back to school with 40,000 new customers

Wired, by John Abell - Open Source Textbook Company Now BMOC At 400 Colleges

ZDNet, by Dana Blankenhorn - Some 40,000 college students studying on a Flat World

InformationWeek, by Serdar Yegulelp - Flat World: Freemium Made Workable

Click here to visit the Flat World Knowledge web site.

Wednesday, August 19, 2009

Android Ebooks Coming to a Phone Near You

As of today, Smashwords ebooks are available on Android phones thanks to our new distribution relationship with Aldiko.

If you're not familiar with Android, then you probably don't yet understand why the news above matters. If you're an ebook author, publisher, or reader, and you're looking to sell or discover ebooks, I wrote this post for you. Consider it an "Ebooks for Android" primer.

First, let's start with what you know. Many ebook fans are familiar with the iPhone. The iPhone has become one of the most popular ebook reading platforms, thanks in part to its fantastic touch screen, but also thanks to a proliferation of great e-reading apps such as Stanza, eReader and BookShelf.

These apps, created by independent software developers, add value to the iPhone by letting you do cool things with your phone, like reading ebooks. Smashwords ebooks, for example, are discoverable by more than two million users of Stanza because they're listed in Stanza's native catalog.

The iPhone, like many other "smart phones," isn't really a phone at at. It's a computer. And like any other computer, it relies on an operating system (just like Windows is an operating system) to allow the apps to work their magic. The iPhone uses a proprietary operating system, which means Apple controls it.

Now that Apple has demonstrated the profitability of selling an app-happy computer wrapped in a telephone's clothing, other phone makers are looking to get in on the action. To turn their phones into smart phones, however, they need an operating system.

Rather than build their own operating system, several handset makers have decided to adopt a new mobile operating system standard called Android. Android is one the most promising developments you'll hear about this year in mobile phones.

A little history on Android: A few years back, Google acquired a company by the same name, which was creating an operating system for smart phones. In late 2007, after shepherding the project along, Google and 47 other companies created the Open Handset Alliance, a consortium of phone makers, software developers and other interested companies who wanted to further develop the Android system and make it available as an open standard that all smart phone companies could utilize.

Several million Android phones have already been sold, and by the end of 2009 nearly two dozen new Android-enabled phones will be on the market. Like any other operating system, be it Microsoft Windows or Android, the real value of the operating system is in running applications created by independent software developers, like e-book reading apps.

According to Flurry, a company that helps techies develop their mobile apps, app developers are excited about Android, probably because so many phones are coming out that support Android. Flurry tracks the number of their developers starting new app development projects for different platforms. As you can see in the chart below, the number of new Android projects is growing quickly, while the number of new iPhone projects is declining. These new project starts are an indication of the type of explosion we're likely to see in applications for Android. Bring on the ebook applications!
The advantage of developing an Android app is obvious to many developers. By developing, for example, and ebook reading app for Android, the app will work on multiple smart phones from multiple manufacturers. So they can build it once and sell it on any device. Apps developed for the iPhone, by contrast, only work on Apple's devices.

All these different Android phones represent potential ebook discovery platforms for authors, publishers and readers.

With today's news of our partnership with Aldiko, Smashwords authors, publishers and readers can benefit from any growth in the Android handset market.

If you're a Smashwords author or publisher, and your books are available in our EPUB format, your books are ready for immediate sampling and sale on Aldiko.

If you own an Android phone, with a lot of patience and a little luck you might locate Aldiko at the horribly designed Android Market, which is the official online marketplace for Android apps. The good folks at Aldiko inform me that if you point your Android phone's camera at the bar code below, it'll help you download their app more easily.


<-- Scan this barcode with your Android camera

Wednesday, August 5, 2009

Why Print Books are Like Zombies

Print books are like zombies. They don't die easily.

When I told my wife Lesleyann I was considering titling this post, "Why Print Books Must Die," she flashed me an icy stare that said, "Don't you dare!" In deference to Mrs. Smashwords, I changed the title.

Don't get me wrong. I love print books. Lesleyann and I collect them. Every Friday, we do date night at the book store. Books form narrow hallways in our house. I'd say I'm cursed by print books except it's really more of a blessing, as anyone sharing our affliction will tell you.

I don't want print books to go away. The real purpose of this post is to make a point about DRM. More about that in a second.

From an early age, we're taught to respect books. We know and love them as receptacles of knowledge and entertainment, and as artifacts and souvenirs. They're expressions of personal identity and personal desire. It's quite amazing, really, how books can envelop our lives like, uh, mossy green zombie goo.

There's a dark side to these zombies of the printed page. We never throw them out, so they're difficult to kill. We pass them on to friends who read them, and then they pass them on again. We sell them, or trade them in for credits at a used bookstore, or we donate them to a library and they change hands again and again and again. Each time they pass from the previous owner to the next, the author and publisher who invested so much effort to create the book don't see a cent. I'm not the first person to raise this point, and I won't be the last.

What do book Zombies and DRM have to do with one another? Quite a lot, actually. DRM, or digital rights management, is a scheme designed to prevent ebook customers from illegally copying and sharing ebooks (most ebooks are licensed like software - you're not legally allowed to share them with friends, or resell them). There's a big debate in publishing circles about whether or not books should be protected (afflicted?) with DRM.

I, and many other progressive book people, think DRM is a bad thing. It treats law abiding customers like criminals by limiting their ability to enjoy their book their way. Others, like a concerned author who emailed me the other day, fear that without copy protection, customers will pirate their books and soon, millions of unpaid copies will be in the hands of ungrateful readers.

Lost in this debate about whether publishers can trust their customers to do the right thing is the zombie elephant in the room. Each time a print book passes to a new owner, the author and publisher earn nothing. It's not piracy, but it has the same effect.

While I think piracy is a bad thing, and chronically under-compensated authors and their publishers deserve more money for their work, it bears remembering that book piracy pre-dated ebooks.

Ebooks, even DRM-free ebooks, could help mitigate the book piracy problem.

Here's how:

Assuming publishers continue producing zombie print books, the incremental cost to create an ebook is infinitesimally small. Smashwords, for example, will convert a finished Microsoft Word manuscript into nine ebook formats at no cost. Many free conversion tools to do the same.

Once in ebook form, ebooks cost virtually nothing for the publisher to print (duplicate) and ship. Unlike Zombie books, ebooks have no inventory, no returns and theoretically (if customers for the most part are trustworthy, as I think they are), no sharing or reselling.

Ebooks are cheap to make, so the publisher can offer them to customers at a lower price. By lowering the price, publishers expand the affordability of the book to a wider potential audience, including folks who can now purchase the book as opposed to seeking out a pirated copy. Bigger market, bigger profits, cheaper books, no zombies. It's a win/win/win for author/publisher/customer.

Want more zombies? Click here for Smashwords ebooks about zombies.

Tuesday, August 4, 2009

New Tele-class Wednesday: Everything You Always Wanted to Know About Publishing Digital Books

Shelley Lieber has invited me back to VIP Authors for a live encore performance Wednesday at 2:00pm Eastern time of the ebook publishing tele-class we first presented back in June.

The theme this time around is, "Everything You Always Wanted to Know about Digital Publishing (but were afraid to ask)." If you're an author or publisher, and you want to learn how to make the move to ebooks, come join us. Don't forget to bring your questions.

I really like Shelley's approach. There's no PowerPoint presentation. It's just Shelley and I on a conference call with Shelley asking smart questions, and then we open it up to audience questions. This time around we're reserving up to 45 minutes for the audience segment. We're also going to invite folks on Twitter to tweet Shelley questions. Shelly is @wordywoman and I'm @markcoker.

If you're not familiar with Shelley, check out my Q&A interview with Shelley from a few months back here on the Smashwords Blog. Shelley's a great advocate for all authors, so I highly recommend you learn about her and get involved with her VIP Authors program.

The class runs from 2:00pm - 3:30pm Eastern. It's free to listen to the live call and ask questions. Click here to learn more and register.

Saturday, August 1, 2009

Priceline Threatens to Sue Smashwords

Alright, this is god awful silly. I don't know whether to laugh or get mad. I'm leaning toward mad, judging from the adrenaline.

It always bugs me when big swinging ding dongs try to throw their weight around using lawyers and the threat of legal action to bully or intimidate.

The ding dong in question is Priceline.com.

A couple hours ago, I received the email below. Priceline is threatening to sue Smashwords if we don't take down our experimental web site, Name-your-own-price-ebooks.com, which is one of a constellation of sites that comprise the Smashwords Satellites experiment we launched a few weeks ago.

Apparently, I offended the sensibilities of their trademark by using the sacred words in a domain name. While they're at it, maybe they should sue Publisher's Weekly for using the term in a book review to refer to Radiohead's innovative experimental pricing model, or sue Amazon.com for reprinting the review, or sue Chris Anderson for using the Publisher's Weekly review to promote his book, Free.

I've always been a huge fan of William Shatner, but I think Priceline.com just lost a customer.

Some background, for those of you who care:

Yesterday, our office received a call from someone inquiring about the above-mentioned domain, which I registered in my name and the name of the PR firm I own, Dovetail Public Relations.

The message I received was cryptic, usually the sign of someone trying to sell me something I don't need. If you ever want to make me not what to return your call, inquire about a domain name that's hardly worth the $8.00 I paid for it. Did she want to purchase the domain? It's not for sale. I only responded because I thought there was a chance she might be a Smashwords customer, possibly having trouble with an ebook.

Personally, I think it's a poor domain name, judging from the fact that as of yesterday, according to Google Analytics (click on the screen shot at below), the site has attracted a grand total of (drum roll please) nine unique visitors for a total of ten visits in about 16 days. No, those aren't typos. I'm not rounding to the nearest million or thousand.

The average time spent on name-your-own-price-ebooks.com, according to Google Analytics, was zero minutes and zero seconds, making me wonder if only robots and web crawlers have visited this particular Satellite. It also makes me wonder if the lawyer bothered to visit the site before billing Priceline.com a few sweet hours to write the toothy letter below.

If she had visited the site, or studied Smashwords, she'd know we don't auction off ebooks. At Smashwords, we give our ebook authors and publishers multiple options by which to price their books, and name your own price is one of them (though we call it "You set the price!" Can we get sued for that too?). Radiohead inspired us to introduce the pricing option 15 months ago, not Priceline.com or my man William Shatner (hey, did you hear him reading Sarah Palin's tweets as poetry on Conan the other night? Hilarious.) .

It's curious Priceline would care about our little Smashwords Satellite experiment. Back in 2005 or 2006, Priceline.com began de-emphasizing their opaque "Name your Own Price" option in favor of more transparent price comparisons, according to these articles in USA Today and the San Francisco Chronicle. The company received quite a bit of criticism for its Name Your Own Price Option, because some customers could overpay if they accidentally bid too high, according to travel author and journalist Edward Hasbrouck of The Practical Nomad who blogged about the practice in 2003 and wrote:

From its start, Priceline.com has required you to "name your own price". Priceline.com determines a minimum offer that they will accept, based on how much their consolidator contracts require them to pay the cheapest airline for your tickets. But Priceline.com doesn't tell you that price. You have to guess, and if you offer more than necessary, Priceline.com keeps the difference as a windfall of pure profit. This is, quite clearly, the system of price "negotiation" most disadvantageous to the consumer.
Clearly, it's not at all similar to what we're doing at Smashwords. Some of our authors want their customers to set the price of their book. Often, it's whatever the customer wants to pay, or is capable of paying. A price of zero is acceptable and quite common. I'd apply for a trademark on "Free Stuff" but that would be silly.

The letter below accuses me of some nasty things, and these accusations just make me all the madder. Some sample gems:

  1. I'm engaging in "calculated infringement of Priceline's NAME YOUR OWN PRICE Mark." (No.)
  2. I'm "trading on the goodwill of their famous service mark" (oh really?)
  3. I "plainly intend to mislead Web users into believing that [Smashwords] is approved of, sponsored by or affiliated with Priceline." (uh, yeah, are you trying to make me laugh? Can I sue you for such a lie?)
  4. My "actions also put Priceline at risk of irreparable injury through tarnishment of its reputation." (Uhm, write me more letters. Maybe if Priceline.com treated their customers with the respect Smashwords treats its customers, you'd have a better reputation than, say, "the bottom of the heap" according to the latest results from the Foresee Survey of ecommerce customer satisfaction, as reported earlier this year by Web Pro News.)
The silliest thing about all this is that this particular Smashwords Satellite, name-your-own-price-ebooks.com, was already a candidate for my chopping block. I shared the stats above. Now I'm not so eager to pull the plug.

When we launched the Satellites, we made clear they were an experiment. Whether some or all of them become permanent standalone sites, or if we kill some, or merge some into the Smashwords.com mother ship (maybe I should refer to it as the Smashwords Starship Enterprise?), remains to be seen. So far, customers have been uniformly positive on the experiment. Customers appreciate the ability to browse and discover ebooks sliced and diced into so many specialty categories, and they like how the user interface allows them to control the information presented.

Oh, as an aside, here's an irony only ebook people and techies will understand: Her firm's web address is www.drm.com.

The letter asks me to respond in writing. So here's my response: Maybe.

(rec'd at 2:12pm Pacific time, August 1 2009.  I replaced her name and contact information with XXX.  It's not her fault, so don't blame her.  She's just doing the evil bidding of Priceline.com.  ~mc.)

Dear Mark,

We represent Priceline.com Incorporated ("Priceline"), the owner of numerous U.S. service mark registrations for its famous marks, including NAME YOUR OWN PRICE(r) (the "Mark"). This Mark has accrued enormous and invaluable goodwill with the public since 1998. Priceline has invested substantial sums in the last decade in popular national advertising campaigns featuring NAME YOUR OWN PRICE, which as a result is now a famous mark, as that term is defined in the Trademark Act.

Our attention has recently been directed to your registration, on behalf of Dovetail Public Relations, of the domain name name-your-own-price-ebooks.com, which links to an active commercial site where users can bid on e-books. The service mark NAME YOUR OWN PRICE EBOOKS is displayed prominently at the top of each Web page. The registration and use of name-your-own-price-ebooks.com and the use of the mark NAME YOUR OWN PRICE EBOOKS for a Web site that allows users to bid on e-books by using Priceline's NAME YOUR OWN PRICE Mark and proprietary auction model violates Priceline's valuable intellectual property rights by trading on the goodwill of that famous Mark. This is illegal under federal and state law.

Web users seeking the services of Priceline are being deliberately and deceptively lured to the name-your-own-price-ebooks.com Web site through your calculated infringement of Priceline's NAME YOUR OWN PRICE Mark. By using name-your-own-price-ebooks.com and NAME YOUR OWN PRICE EBOOKS, you plainly intend to mislead Web users into believing that your business is approved of, sponsored by or affiliated with Priceline.

That e-books are being auctioned rather than travel services provides no defense. The NAME YOUR OWN PRICE Mark is so famous and so closely identified with Priceline that the scope of protection from dilution afforded the Mark under federal law extends to any product or service. You may therefore be held accountable for any sales attributable to consumer traffic improperly diverted to your site as a result of the violation of Priceline's rights. These actions also put Priceline at risk of irreparable injury through tarnishment of its reputation.

Any further use of name-your-own-price-ebooks.com and NAME YOUR OWN PRICE EBOOKS as a service mark or business name must immediately cease, as must the use of any other infringing trademarks, service marks, domain names, electronic identifiers, URL addresses, metatags, promotional communications and the like, wherever they may appear, that incorporate "NAME YOUR OWN PRICE" or obvious variations of it.

Accordingly, we demand that you reply in writing (e-mail is acceptable) confirming that:

(a) name-your-own-price-ebooks.com will immediately be disabled, remain inactive, not be transferred, and not be renewed when it expires on June 16, 2010;

(b) any and all use of name-your-own-price-ebooks.com and NAME YOUR OWN PRICE EBOOKS will immediately cease; and

(c) you will not use "Name Your Own Price," "Name Your Own Price Ebooks" nor any other variation of the Mark, in any domain name or service mark, on any Web site, or anywhere at all in the future.

If these steps are taken promptly, we will monitor name-your-own-price-ebooks.com but not pursue the matter further. We will visit the name-your-own-price-ebooks.com Web site shortly. If we find it still active we may, without further notice to you, file a complaint under the Uniform Domain Name Dispute Resolution Policy with the World Intellectual Property Organization, or take such other legal action as we deem necessary to terminate your tortious interference with Priceline's business. We are hopeful you will choose the path of least resistance.

Please contact me if you have any questions.

XXX | Downs Rachlin Martin PLLC
Associate | Intellectual Property Law Group
199 Main Street, PO Box 190 | Burlington, VT 05402-0190
XXX
XXX| www.drm.com

Admitted in Vermont, New Hampshire, and Massachusetts

-----Original Message-----
From: Mark Coker [mailto:XXX
Sent: Saturday, August 01, 2009 5:27 PM
To: XXX
Subject: Re: Smashwords

XXX,

Let's do it over email. How can I help you?

mark



XXX wrote:
> Hi, Mark,
>
> Please call me on Monday.
>
> Thanks,
> XXX
>
>
> XXX | Downs Rachlin Martin PLLC
> Associate | Intellectual Property Law Group
> XXX
> XXX| www.drm.com
>
>
> Admitted in Vermont, New Hampshire, and Massachusetts
>
>
> -----Original Message-----
> From: Mark Coker [mailto:XXX
> Sent: Friday, July 31, 2009 1:08 PM
> To: XXX
> Subject: Smashwords
>
> Hi XXX,
>
> You called? How can I help you?
>
> Best,
> mark
>
>