Rare Book Monthly

Articles - November - 2013 Issue

Apple Inc. to Appeal Ebook Price-Fixing Verdict

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Apple files notice it will appeal.

Apple, Inc., has officially notified the U. S. Court of Appeals that it intends to appeal the judgment against it in the recent ebook price fixing case. Apple, along with five publishers, was accused of a conspiracy to fix the prices of electronic books by forcing Amazon to raise their charges to levels sought by Apple. Apple wished to join Amazon in selling electronic books online, but did not wish to join their rival in offering them for prices that left little if any room for profit. Amazon is focused on long-term market share, and is willing to forgo profits today for market share tomorrow. Apple wishes to have its cake and eat it too.

 

Apple and the publishers had numerous conversations, and on one day, the publishers all switched to an agency model of pricing. In an agency model, the publisher sets the retail price and all retailers must charge that amount. No one is allowed to discount, as Amazon had been doing. It forced Amazon to raise its prices.

 

While agency pricing may sound like price fixing in itself, it is not. Publishers can force all retailers to charge a minimum price for their books. What they can't do is get together and all agree to adopt the agency model together. That is what the U.S. Department of Justice believed had happened when they all raised prices together, and the D.O.J. believed that Apple was a major instigator of the claimed conspiracy.

 

Ultimately, all of the publishers chose not to fight city hall. They all reached settlements with the D.O.J. Apple did not. Apple contended that it had done no wrong, that it had not conspired with the publishers to set prices. They fought the case in court. They lost.

 

The District Court ruled that Apple had conspired to fix prices. No monetary judgment has yet been set, but the Court did order a monitor be placed in Apple's headquarters to make sure they do not engage in such behavior again. Apple still believes it owes no damages, deserves no monitors. So, on October 3, they officially filed a notice with the Appeals Court of their intent to appeal.

 

Apple has not stated a grounds for its appeal. It has a few months to put the details together. However, they made sure to leave every door open, writing in the notice that it appealed against the injunction and “any and all orders and rulings that were adverse to it.” Some hints of Apple's claims may be gleaned in objections Apple earlier filed with the trial court. Apple claimed that various witnesses they believed helpful to their case were not permitted to testify, certain testimony was disregarded, and incorrect inferences were drawn. This will all undoubtedly come out in greater detail when the appeal itself is filed.

 

An unscientific perusal of articles by legal experts suggests that most believe Apple has a difficult challenge. The consensus appears to be that the decision was well-reasoned and facts clearly established. Nevertheless, Apple will undoubtedly be bringing the best legal minds to the challenge, and no one can better afford an appeal than Apple. Apple earns almost a billion dollars a week and has for a long time been struggling to figure out what to with all of its money. No matter how much it invests in the appeal, it will be barely a drop in the bucket. Having more money than you know what to do with is one of those unusual challenges most of us will never experience.

 

Rare Book Monthly

  • <b>Old World Auctions (Feb 3-17):</b><br>Lot 14. Blaeu,<i>Nova Totius Terrarum Orbis Geographica ac Hydrographica Tabula</i>, 1635. Est. $14000-$16000
    <b>Old World Auctions (Feb 3-17):</b><br>Lot 305. Arrowsmith, <i>Texas: The Rise, Progress, and Prospects of the Republic of Texas</i>, 1841. Est. $18000-$20000
    <b>Old World Auctions (Feb 3-17):</b><br>Lot 256. Thackara, <i>Plan of the City<br>of Washington in the Territory of Columbia</i>, 1792. Est. $13000-$16000
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 188. Browne/Senex, A New<br>Map of Virginia Mary-land, 1719. <br>Est. $5500-$6500
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 47. Cellarius, <i>Scenographia Systematis Copernicani</i>, 1708.<br>Est. $2400-$3000
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 6. Ortelius, <i>Typus Orbis Terrarum</i>, 1571. Est. $7000-$8500
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 413. De Medina, <i>Mundo Novo,</i> 1554. Est. $7000-$9000
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 37. Jansson, <i>Histoire des Grands Chemins de l'Empire Romain</i>, 1736. Est. $3000-$3750
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 798. Le Rouge, <i>Atlas Nouveau Portatif a l'Usage des Militaires</i>, 1748. Est. $2400-$3000
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 60. Munster, <i>Tabula Novarum Insularum</i>, 1559. Est. $5500-$7000
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 122. Morden, <i>A New Map of the English Empire in America</i>, 1695. <br>Est. $14000-$16000
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 291. J.J. Stoner, Niagara-Falls, <br>N.Y., 1882. Est. $1600-$1900
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 797. Sanson, <i>Die Gantze Erd-Kugel</i> ... Europa, Asia, Africa und America, 1679. Est. $8000-$10000
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 799. Lotter/Lobeck, Atlas Geographicus Portatilis, 1760.<br>Est. $1600-$1900
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 808. Railroad Companies, [<i>Manuscript Railroad Atlas</i>], 1890.<br>Est. $1000-$1500
    <b>Old World Auctions (Feb 3-17):</b> <br>Lot 800. Pinkerton, <i>A Modern Atlas</i>, 1815. Est. $8000-$10000
  • <b>19th Century Shop.</b> LINCOLN, ABRAHAM. <i>A superb collection of manuscripts signed by Lincoln and relics related to Lincoln’s death</i>. Washington, 1864-1865
    <b>19th Century Shop.</b> Rare Relic of the Underground Railroad (1857). <i>$500 Reward Ran away ...</i>
    <b>19th Century Shop.</b> CARTER, SUSANNAH. <i>The Frugal Housewife,</i> (1772) the second American cookbook, plates by Paul Revere.
    <b>19th Century Shop.</b> SCHIRRA, WALTER M.. Icon of the American Space Program. <i>A Complete Set of Schirra’s Flight Log Books (1947-69).</i>
    <b>19th Century Shop.</b> A fine pair of daguerreotypes, one a black nurse holding a white baby, the other the white parents. Maryland, c. 1853.
    <b>19th Century Shop.</b> The Internet. (COMPUTERS.) CERF, VINTON & KAHN, ROBERT. <i>"A Protocol for Packet Network Intercommunication" in IEEE Transactions on Communications.</i>
  • <b>Swann Auction Galleries Feb 25:<br>Art & Storytelling: Photographs<br>& Photobooks</b>
    <b>Swann Auction Galleries Feb 25:</b> Marcus A. Root, "<i>General Tom Thumb</i>" with parents, daguerreotype, circa 1846. $30,000 to $40,000.
    <b>Swann Auction Galleries Feb 25:</b> William Saunders, <i>Sketches of Chinese Life and Character</i>, album with 50 hand-colored photographs, 1871-72. $25,000 to $35,000.
    <b>Swann Auction Galleries Feb 25:</b> Wilson A. Bentley, album of 25 microphotographs from glass<br>plate negatives, 1888-1927.<br>$20,000 to $30,000.
    <b>Swann Auction Galleries Feb 25:<br>Art & Storytelling: Photographs<br>& Photobooks</b>
    <b>Swann Auction Galleries Feb 25:</b> Hilla & Bernhard Becher, <i>Anonyme Skulpturen, Eine Typologie technischer Bauten</i>, first edition inscribed, Düsseldorf, 1970. $1,200 to $1,800.
    <b>Swann Auction Galleries Feb 25:</b> Edward Ruscha, four seminal artist's books in original dust jackets.<br>$1,500 to $2,500.
    <b>Swann Auction Galleries Feb 25:</b> Typological set of more than 100 photographs of WWII fighter planes, 1942-45. $400 to $600.
    <b>Swann Auction Galleries Feb 25:</b><br>Roy DeCarava and Langston Hughes, <i>The Sweet Flypaper of Life</i>, first edition signed by authors, New York, 1955. $500 to $750.
  • <b>Bonhams Fine Books and Manuscripts, February 14th, 2016.</b>
    <b>Bonhams Feb 14th:</b> Lot 9. HIERONYMUS. C.340-420. <i>Epistolae. WITH: Lupus de Oliveto. Regula Monachorum ...</i> US$ 20,000-30,000.
    <b>Bonhams Feb 14th:</b> Lot 47. FROST, A.B. 1858-1921. Shooting Pictures. New York: Charles Scribner's Sons.<br>US$ 10,000-15,000.
    <b>Bonhams Feb 14th:</b> Lot 53. PICASSO, PABLO, RAOUL HAUSMANN, et al. ILIAZD, ed. Poesie de mots inconnus. 1949. US$ 8,000-12,000.
    <b>Bonhams Feb 14th:</b> Lot 64. BRIGGS, HENRY. 1561-1630. <i>The North Part of America</i>. [London: 1625]. Engraved by R. Elstracke. US$ 8,000-12,000.
    <b>Bonhams Feb 14th:</b> Lot 79. COPERNICUS, NICOLAUS. De revolutionibus orbium coelestium. 1566. US$ 80,000-120,000.
    <b>Bonhams Feb 14th:</b> Lot 80. DARWIN, CHARLES. On the Origin of Species by Means of Natural Selection, or the Preservation of ... US$ 70,000-90,000.
    <b>Bonhams Feb 14th:</b> Lot 87. NEWTON, ISAAC, SIR. Autograph Manuscript in Latin and English [n.p., early 1670s}. US$ 100,000-150,000
    <b>Bonhams Feb 14th:</b> Lot 93. Dr. Kary Mullis' 1993 Nobel Prize in Chemistry, awarded to him for the invention of the Polymerase Chain Reaction. US$ 450,000-550,000.
    <b>Bonhams Feb 14th:</b> Lot 96.<br>CLEMENS, SAMUEL. Autograph Manuscript, nearly complete chapter 30 of <i>A Tramp Abroad</i>, c.1879.<br>US$ 20,000-30,000.
    <b>Bonhams Feb 14th:</b> Lot 105. GOLF. [MATHISON, THOMAS. d.1754.]<br><i>The Goff</i>. An Heroi-Comical Poem.<br>US$ 40,000-60,000.
    <b>Bonhams Feb 14th:</b> Lot 113. JOYCE, JAMES. 1882-1941. <i>Ulysses</i>. First Edition, Presentation Copy, Signed and Inscribed by Joyce on the half-title. US$ 40,000-60,000.
    <b>Bonhams Feb 14th:</b> Lot 120. LONDON, JACK. Autograph Manuscript of the short story "Flush of Gold". US$ 40,000-60,000.
    <b>Bonhams Feb 14th:</b> Lot 135. STEINBECK, JOHN. Autograph Manuscript of an unpublished short story. US$ 35,000-45,000.
    <b>Bonhams Feb 14th:</b> Lot 149. GERONIMO. BARRETT, S.M., ed. Geronimo's Story of His Life. 1906. US$ 12,000-18,000.
    <b>Bonhams Feb 14th:</b> Lot 165.<br>ENOLA GAY. LEWIS, ROBERT A. An official pilot's log, 1942 to 1946.<br>US$ 50,000-80,000.

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