Wednesday, March 20, 2013

Apple and Amazon Patent Exchange Markets for Digital Books and Music

Hunter Commnications recommended reading from:
The New York Times

Link to article:
Revolution in Resale of Digital Books and Music

Unlike physical books, records and CDs, the actual ownership of the e-books and mp3s you have bought is a legal gray area. Officially you never own them, but have paid a user fee to read or listen.  So getting rid of music or ebooks you no longer want is currently not legally possible.  All this may change due to patents issued to Amazon and Apple to enable resale exchanges where these types of files can be transferred from one owner to another.

Excerpt: "The retailer’s button might say 'buy now,' but you are in effect only renting an e-book — or an iTunes song — and your rights are severely limited. That has been the bedrock distinction between physical and electronic works since digital goods became widely available a decade ago.

That distinction is now under attack, both in the courts and the marketplace, and it could shake up the already beleaguered book and music industries. Amazon and Apple, the two biggest forces in electronic goods, are once again at the center of the turmoil.

In late January, Amazon received a patent to set up an exchange for all sorts of digital material. The retailer would presumably earn a commission on each transaction, and consumers would surely see lower prices.

But a shudder went through publishers and media companies. Those who produce content might see their work devalued, just as they did when Amazon began selling secondhand books 13 years ago. The price on the Internet for many used books these days is a penny.

On Thursday, the United States Patent and Trademark Office published Apple’s application for its own patent for a digital marketplace. Apple’s application outlines a system for allowing users to sell or give e-books, music, movies and software to each other by transferring files rather than reproducing them. Such a system would permit only one user to have a copy at any one time.

Meanwhile, a New York court is poised to rule on whether a start-up that created a way for people to buy and sell iTunes songs is breaking copyright law. A victory for the company would mean that consumers would not need either Apple’s or Amazon’s exchange to resell their digital items. Electronic bazaars would spring up instantly."

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