• <b>Sotheby's Paris, De la bibliothèque Stéphane Mallarmé, 15 October.</b>
    <b>Sotheby's Paris</b>: Lot 163. Stéphane Mallarmé. An autograph manuscript for <i>Un coup de Dés jamais n'abolira le Hasard</i>. [Avril Ou Début MAI 1897]. Est. 500,000-800,000 EUR.
    <b>Sotheby's Paris</b>: Lot 109. Manet, Edouard - Edgar Allan Poe - Stéphane Mallarmé. <i>Le Corbeau. The Raven. 1875</i>. Est 80,000-120,000 EUR.
    <b>Sotheby's Paris</b>: Lot 152. Edgar Degas. <i>Portrait of Stéphane Mallarmé and Auguste Renoir</i>, [16 Décembre 1895]. Est. 40,000-60,000 EUR.
    <b>Sotheby's Paris</b>: Lot 15. Baudelaire, Charles. <i>Les Fleurs du Mal. Paris, Poulet-Malassis et De Broise, 1861.</i> <br>Est. 80,000 - 120,000 EUR.
    <b>Sotheby's Paris, De la bibliothèque Stéphane Mallarmé, 15 October.</b>
    <b>Sotheby's Paris</b>: Lot 137. Mallarmé, Stéphane. Vers Sur un Galet D'Honfleur. [Eté 1892 OU Été 1894.] Est. 5,000-8,000 EUR.
    <b>Sotheby's Paris</b>: Lot 48. Gide, André - Maurice Denis. <i>Le Voyage d'Urien. Paris, Librairie de L’Art indépendant, 1893.</i> Est. 20,000-30,000 EUR.
    <b>Sotheby's Paris</b>: Lot 103. Mallarmé, Stéphane - Edgar Allan Poe. Manuscripts Autographs. [1870-1875 ET 1869]. Est. 80,000-120,000 EUR.
    <b>Sotheby's Paris</b>: Lot 107. [Revue - Stéphane Mallarmé] La Derniere Mode. Gazette du monde et de la famille. Est. 40,000-60,000 EUR.
    <b>Sotheby's Paris, De la bibliothèque Stéphane Mallarmé, 15 October.</b>
    <b>Sotheby's Paris</b>: Lot 110. Mallarmé, Stéphane - Edouard Manet. <i>L’après midi d'un Faune. Églogue. Paris, 1876.</i> Est. 30,000-50,000 EUR.
    <b>Sotheby's Paris</b>: Lot 160. Mallarmé, Stéphane. Premier état D'un Un Coup De Dés Jamais N'Abolira Le Hasard. Manuscrit Autographe. [1897].<br>Est. 60,000-80,000 EUR.
    <b>Sotheby's Paris</b>: Lot 164. Mallarmé, Stephane. 6 jeux d’épreuves Pour un Coup De Dés Jamais N'Abolira Le Hasard De l’édition définitive chez Vollard. Est. 100,000-150,000 EUR.
    <b>Sotheby's Paris</b>: Lot 198. [Méry Laurent] <i>Liber Amicorum De Méry Laurent</i>. 1875-Fin Des Années 1890]. Est. 50,000-80,000 EUR.
  • <b>AUCTIONATA Oct 14th:</b> Lot 52. Charles Schulz, Original Peanuts Snoopy Baseball Strip, U.S.A, 1964. Starting price $16,000.
    <b>AUCTIONATA Oct 14th:</b> Lot 6.<br>Maurice Sendak (1928-2012), 'Max, Where the Wild Things Are', Pen & Ink, 2012. Starting price $1,500.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 13.<br>Leo Rijn after Dr. Seuss, Cowfish Maquette, U.S.A, 1998. Signed on stand. Starting price $1,000.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 17.<br>Dr. Seuss, Untitled, Color Pen & Ink, C. 1940. Signed ‘Dr Seuss’ lower left. Starting price $4,000.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 19.<br>Dr. Seuss, ‘I wonder how I offended George…’ Pen & Ink, C. 1930. Starting price $7,500.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 29.<br>Disney Studios, 'Queen, Snow White', Concept Sketch, U.S.A., C. 1937. Starting price $3,000.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 30.<br>Marc Davis, 'Sleeping Beauty in a Meadow', Production Cel, 1959. Signed. Starting price $1,200.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 50.<br>Charles Schulz, Original Peanuts Daily Strip, USA, 1966. Signed 'Schulz'. Starting price $10,000.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 58.<br>Chuck Jones, Signed, hand-painted Production Cels from Duck Dodgers, 1952. Starting price $4,500.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 77.<br>Stan Lee, Marvel Studios, Bishop,<br>X-Men, Production Cel, C.1995. <br>Starting price $240.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 79.<br>Warner Bros, 'New Adventures of Superman', C. 2000. Production Cel. Starting price $300.00.
    <b>AUCTIONATA Oct 14th:</b> Lot 84.<br>Tim Burton, Mayor from Nightmare Before Christmas, C. 1993. Starting price $1,500.00.
  • <b>Swann Auction Galleries Oct 22:</b> Autographs
    <b>Swann Auction Galleries Oct 22:</b> Autograph letter signed by Confederate President Jefferson Davis to Senator John William Clark Watson, Richmond, 1865. $10,000 to $15,000.
    <b>Swann Auction Galleries Oct 22:</b> Autograph poem by John Quincy Adams from an album kept by Abby Smith, w. inscription signed by her grandfather, John Adams, 1820s. $10,000 to $15,000.
    <b>Swann Auction Galleries Oct 22:</b> Typed letter signed by Theodore Roosevelt to assemblyman Michael A. Schapp, New York, 1913. $10,000 to $15,000.
    <b>Swann Auction Galleries Oct 22:</b> Autographs
    <b>Swann Auction Galleries Oct 22:</b> Autograph letter signed by Richard Wagner to Hofkapellmeister Max Seifriz, Zürich, 1853. $7,000 to $10,000.
    <b>Swann Auction Galleries Oct 22:</b> Photograph signed and inscribed by Pyotr Ilyich Tchaikovsky to librettist Paul Collin, 1888. $6,000 to $9,000.
    <b>Swann Auction Galleries Oct 22:</b> <i>Katalog der Wiener Kunstschau</i> signed and inscribed by Egon Schiele, 1916. $6,000 to $9,000.
    <b>Swann Auction Galleries Oct 22:</b> Autographs
    <b>Swann Auction Galleries Oct 22:</b> Letter signed by Mohandas K. Gandhi to Dr. John Haynes Holmes, Sevagram, 1940. $5,000 to $7,500.
    <b>Swann Auction Galleries Oct 22:</b> Photograph signed and inscribed by Marilyn Monroe to Dulce Brito, circa 1957. $4,000 to $6,000.
    <b>Swann Auction Galleries Oct 22:</b> Two typed letters signed by William Faulkner, Los Angeles, 1943. $4,000 to $6,000.
  • <b>19th Century Shop.</b> A patriot who fought with George Washington Superb Daguerreotype of Baltus<br>Stone at age 101 (1846).
    <b>19th Century Shop.</b> Edward Curtis portrait of Honovi, Walpi Snake Priest "Honovi was one of the author's principal informants" (1910).
    <b>19th Century Shop.</b> The Execution of the Lincoln Assassination Conspirators by Alexander Gardner (1865).
    <b>19th Century Shop.</b> Harriet Beecher Stowe, Catharine Beecher, Henry Ward Beecher, and the other siblings with their father Lyman Beecher. By Mathew Brady (1850s).
    <b>19th Century Shop.</b> From Slaves to World-Famous Entertainers Millie-Christine, "The Two-Headed Nightingale" (c. 1868-71)
    <b>19th Century Shop.</b> Goldfield, Nevada Photograph Collection Fabled Western Mining Boomtown (1905-1906)
    <b>19th Century Shop.</b> Tycoon-Collector Benjamin Richardson poses with his great-grandson as appeared in parade.
    <b>19th Century Shop.</b> Alexander Gardner portrait of Lincoln the only known copy, ex-John Hay (1863).
    <b>19th Century Shop.</b> Magnificent Niagara Falls album with a strong provenance (1867).
    <b>19th Century Shop.</b> Spectacular American West Album From Yosemite to Salt Lake City to San Francisco.

Rare Book Monthly

Articles - April - 2014 Issue

Apple Appeals Judgment It Engaged in E-Book Price-Fixing Scheme


Apple appeals the judgment against it.

As promised, Apple has filed a blistering appeal against a federal court decision that held it had participated in a conspiracy with book publishers to fix the prices of electronic books at artificially high levels. “Apple and the Publisher Defendants agreed to work together to eliminate retail price competition in the e-book market and raise the price of e-books above $9.99,” wrote District Court Judge Denise Cote in her opinion. Just the opposite, responded Apple. “Apple’s entry as an e-book retailer marked the beginning, not the end, of competition.” Who is right? Stay tuned.


Here is what we know. In late 2009, Amazon controlled 90% of the e-book market. Part of their strategy for gaining such control was low pricing, sometimes selling books at less than their cost, particularly with the most popular titles. It made it extremely difficult for others to enter the business.


While book publishers were able to sell these e-books to Amazon for the prices they wanted, they were still unhappy. Two things bothered them. One was they feared Amazon's unexpectedly low e-book prices would interfere with their ability to sell printed books, a more lucrative market. Secondly, no one likes to have most of their sales go to a single customer. It can give that customer enormous leverage over the supplier in future negotiations. That is a very risky position for any supplier.


Evidently, various publishers were aware that their compatriots were similarly distressed by this situation, though we do not know how much direct communication there was between them. After they, and Apple, were sued by the Department of Justice and others for a conspiracy to fix prices, all five publishers agreed to pay large sums in settlement. Whether they settled out of guilt, or, as one publisher claimed, simply because the potential financial risk of a loss in court was so great it would put them out of business, is uncertain.


In December of 2009, Apple approached the publishers with a plan to open an online e-book store, to go along with its newly introduced tablet computer, which can also be used as an e-reader. However, Apple concluded this would not be feasible unless two conditions were met. First, it must make a reasonable profit. Apple has no interest in building market share by losing money, as Amazon does. Secondly, it did not want to have anyone else undercutting their prices, making them look bad. If Apple needed a 30% profit, while Amazon sold at cost, naturally Apple's price would be 30% more for the same books, an embarrassing situation. Apple may charge a high price for its merchandise, but that is because it is unique, Apple-branded merchandise. It does not want to sell the same thing as Amazon for a much higher price.


Apple explained its requirements to the publishers. What it wanted was for the publishers to adopt “agency” pricing. At the time, the publishers were selling their e-books (primarily to Amazon) at a set wholesale price. Amazon then set the retail price. The bookseller was free to go as low (or high) as it wanted, depending on how much or little it was willing to make on each sale. In agency pricing, however, the publisher sets the retail price. All retailers must sell their books for at least that much. The retail prices they set afforded a 30% commission for the retailers. Of course, this meant that books Amazon was selling at cost or a loss would rise by at least 30%.


Exactly what happened next is unclear. What we do know is that a few weeks later, all at once, the five publishers switched over to agency pricing. Amazon had little choice but to accede. Meanwhile, Apple began selling e-books. According to Apple, between themselves and Barnes & Noble (who could also now afford to sell e-books), they control 30%-40% of the market, meaning Amazon's share has dropped substantially from its previous 90%.


So the question becomes, what did Apple do in that period between telling the publishers individually what they demanded to sell e-books and the publishers switching to Apple's required agency model? Apple had a legal right to tell publishers it would only sell if prices were set so they could make 30% while no one else could sell for less. That is not illegal price fixing. What is illegal is for them to act in concert with multiple publishers to set prices – that is a legal “conspiracy” to fix prices. Even if the publishers conspired with each other to set prices, which is illegal, that does not necessarily mean Apple conspired with them if Apple acted independently with each. However, if, as the court ruled, in the Department of Justice's words, Apple was a “ringmaster” in this conspiracy, then they have violated the law.


The court looked at the evidence and said, in effect, of course Apple was pulling the strings. There is something in the law called a “per se” standard that says there is an antitrust violation where the evidence is obvious. And then, there is another standard where it is not so obvious, but if the evidence establishes participation in a conspiracy, it is also a violation. The court focused on “per se” guilt, but said Apple was guilty under both standards.


Apple responded that the evidence does not establish such participation, and that the law requires clear evidence, not just actions that are consistent with a conspiracy. The demands it made on publishers, Apple said, were strictly normal ones to meet its business needs, and did not require a conspiracy. They say they simply told the publishers what they needed in order to sell e-books, and left it to the publishers to decide whether to meet their requirements. If the publishers conspired among themselves, that was not Apple's doing. They neither participated nor encouraged the publishers to act in concert.


Apple also challenged whether the result of their requirements was anti-competitive anyway. They cite the fact that Amazon's share has substantially decreased, while new vendors now offer e-books for sale. That is pro-competition, not a hindrance to it, Apple argues. There are now more retailers selling e-books. On prices, Apple also cited statistics that e-book prices, as a whole, have come down. Self-published books, in particular, Apple claims, have seen their prices drop, as the 30% profit Apple demands leaves the self-publishers 70%. Apple says this is twice what Amazon used to give them before Apple began carrying their books, enabling these publishers to lower their retail prices. And one more thing – Apple says they did not demand publishers lower retail prices, only that the minimum price leave them a 30% margin. Publishers could set the prices at $9.99 or even less if they chose, so long as the wholesale price was 30% less. What appears to have happened, if Apple's statistics are right, is that overall e-book prices came down, though the prices for the most popular books, which Amazon used to sell at little or no profit, went up.


The Department of Justice has said it will respond to Apple's appeal in May. You can be sure they will give a far less benign account of Apple's actions. Judge Cote's decision paints a series of discussions between Apple and the publishers that implies that firm was knowingly leading them down the road of joint price setting, even while holding separate conversations. It will then be up to the Appeals Court to confirm that ruling, overturn it, or order a new trial. One thing you can count on – Apple will not give up easily or go quietly into the night. This case may one day find itself in the Supreme Court.

Rare Book Monthly

  • <b>Bonhams September 21:</b> Lot 14. Darwin, Charles. 1809-1882. <i>On the Origin of Species by Means of Natural Selection... 1859.</i>. US$ 60,000-80,000.
    <b>Bonhams September 21:</b> Lot 46. Smith, Adam. 1723-1790. <i>An Inquiry into the Nature and Causes of the Wealth of Nations.</i> US$ 70,000-90,000.
    <b>Bonhams September 21:</b> Lot 224. CIVIL WAR. Gardner's Photographic Sketch Book of the War [1865-1866]. US$ 120,000-180,000.
    255 — add to caption: First Edition, Subscriber’s Copy
    <b>Bonhams September 21:</b> Lot 270. Serra, Junipero. 1713-1774, ET AL. Pangua, Francisco. Letter in Spanish, 1775. US$ 60,000-90,000.
    <b>Bonhams September 21:</b> Lot 77. Apple 1 Motherboard, with label "Apple Computer 1 / Palo Alto. Ca. Copyright 1976." US$ 300,000-500,000.
    <b>Bonhams September 21:</b> Lot 46. The 1934 Nobel Prize Medal for Physiology or Medicine. Presented to George Minot. US$ 200,000-300,000.
    <b>Bonhams September 21:</b> Lot 39. Darwin, Charles. 1809-1882. Autograph Letter Signed ("Ch. Darwin"). US$ 70,000-90,000.
    <b>Bonhams September 21:</b> Lot 4. Lubieniecki, Stanislaw. 1623-1675. <i>[Theatri Cometici pars posterior] Historia Cometarum...</i> US$ 25,000-35,000.
    <b>Bonhams September 21:</b> Lot 3. Vera rare George III mahogany and engraved brass orrery. US$ 200,000-250,000.

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