Could Amazon's Lending Library End in Court?

As more information has come to light about the Lending Library program Amazon launched last week, the tenor in the industry has shifted from puzzlement to anger. Although Amazon initially said it reached a "variety of terms" with publishers to include their titles in the Lending Library program, which allows Amazon Prime members to borrow one title per month for free, PW has learned that the overwhelming majority of publishers with titles featured in the program did not reach any agreement with the retailer. Rather, these titles were taken without publishers' knowledge or consent. Many publishers, who feel the program undercuts the value of their content and is something Amazon is doing to promote sales of its devices--a Prime membership costs $79 a year and also includes free shipping on products and access to streaming video content--are now consulting their contracts and their lawyers to see what, if any, legal action can be taken. PW has also learned that Amazon has been in talks with some agents who have expressed discomfort with the program.