Showing posts with label parallel imports. Show all posts
Showing posts with label parallel imports. Show all posts

Wednesday, November 11, 2009

Victory is so, so sweet

Craig Emerson, the Minister for Small Business, Independent Contractors and the Service Economy; the Minister for Competition Policy and Consumer Affairs, and the Minister Assisting the Finance Minister on Deregulation, has just issued a press release stating that parallel importation regulations will not be changed. That's correct: NOT be changed. Which means Australian copyright still exists and Australian authors have the same fair shot at getting published that they had a couple of years ago (the industry has been understandably nervous the last year and a bit).

This is extraordinary news, and I can't begin to describe my relief. I've had more to do with this issue in the last few weeks than I thought I would, and from close up it wasn't looking too hopeful.

To the booksellers who will be disappointed, I can only say that Amazon has precisely the share of the Australian market that it should have - books are not cheaper from Amazon when you're paying to fly them here, and people seem to order from Amazon when there's a book they just can't get here, not when there's a book that's delayed by a month (because flying the book here takes almost as long unless you want to pay huge courier fees). I know all of this because I order books from Amazon and it is always books that I just can't get here, for whatever reason (usually because they're out of print).

To the large chains who think they're hard done by: count your discount blessings while you have them and stop to think that there is absolutely nothing to prevent publishers selling direct from their websites. The internet means that a book can be sourced from many different places - there is no reason that one of those places shouldn't be the publishing company, with its big warehouse and courier contracts.

Big thanks to all of you who wrote to your MPs, who wrote on your own blogs and generally provided support - a special shout-out to Theresa L.

Thursday, July 23, 2009

The Productivity Commission - part XXVI

It feels like part XXVI, even though I haven't made that many posts on the subject.

I believe there is some rallying of the pro-Productivity Commission troops going on. 'Cheaper books' is the cry. Yawn. YAWN. Since when did a public company give cheaper anything? Since when did you all start believing that Coles, Woolworths and Dymocks are going to do something that benefits their customers? How are those petrol prices working for ya? How's your toilet paper? How's your 'home brand' product range - about the same price as everything else, right? That's how they roll.

And since when have we forgotten that tried-and-true chestnut, that there is no such thing as a free lunch? Well, folks, those so-called cheaper books are the free lunch. Which means there's a price somewhere ... oh, wait, here it is: you can have cheaper books, sure, but just don't expect them to be Australian. Don't expect to get your Donna Hay cookbook or your Michael Clarke Captain's Diary or your Lote Tuqiri tell-all, because there won't be anyone around to produce them. Why not? Nope, not because publishers won't exist - because writers won't.

There is bugger-all money for writers as it is; if retailers like Dymocks pound the publishers for more and more discounts - they already pay less than half the recommended retail price for a book, which means that anything they charge above the discount is money straight to them - then the publishers have to squeeze it at the other end. The other end is the writer. If Dymocks will only pay $5 for a book that used to cost them $15, how much money do you think there is for the writer after the publisher has paid for production, distribution, sales, marketing and publicity?

Of course, I've heard that writers are all members of an 'elite' - thus, they must all be trustafarians who don't need the money. Yeah, right. The writers I know come from all sorts of backgrounds and live all sorts of lives. Some were cops; some were actors; some were journos; some work in bookshops. Most of them don't have anything approaching a Masters degree. Most of them work bloody hard for a living and then do their writing at 3 a.m. with a crying child, or late at night after a shift, or they sneak it into a lunch hour. They're not elite in anything other than talent. And since when did having talent make someone 'elite'? It just makes them talented.

So let's turn to those other so-called 'elites': people who work in publishing. Hmmm, let me see ... public high school, public high school, private school on a scholarship, public high school. I personally started working the day after I finished my HSC and kept working throughout university. Guess I wasn't elite enough to get by without the money. Maybe I should leave the industry. Except you know what I spent a lot of my money on back then? Books. I bought books because I couldn't breathe without them. I bought books because they were my whole world. They fired my imagination and made me laugh and cry and dream.

Writers wrote those books. It sounds facile to say it, but let's go over it again: writers wrote those books. Without writers, there are no books. There are no stories. So how dare anyone - ANYONE - imply that they are not worth every cent they are paid, and more. How dare anyone say that they should be paid less. How dare anyone - let alone the CEO of Dymocks, who makes his money off the products of writers - call Australian writers incompetent. I'd like to see him write a book. But, no, he can't - he's not elite enough. He's just the CEO.

There's a lot of misinformation going on in this debate, and it's centred on this mantra: 'cheaper books'. Australian books are not expensive compared to books in the rest of the world. And anyone crowing about the cost of books overseas and the price they'd fetch here under this new world order has failed to factor in the enormous cost of actually getting those books here. Who do you think is going to pay for that? Do you imagine that Dymocks will absorb the cost of freight so they can bring their customers cheaper books? If so, let me resurrect a phrase from the 1980s: that, my friends, is Voodoo Economics.

The Coalition for Cheaper Books has also managed to divert attention away from another truth about writers. agents and publishers: we are all book buyers too. But we are 'super-user' book buyers. We understand the economics behind the price of a book. Don't you think that, as folks with a heightened interest in buying books, we'd be the first to support the idea of 'cheaper books' if we actually believed they weren't as cheap as they could be? The Coalition members have not seen costings for books; I have. I can assure you that the profit margins aren't big. I can also assure you that most books never earn out their advance. Publishers take the risk that they won't. They take that risk on some books that they're fairly certain will never earn out - like first novels - because they believe in what they're doing. They believe in books. Yes, they're mostly public companies but there is this weird thing in the publishing industry: we believe we're all involved in something bigger than ourselves. We believe in the mission. And to quote Buffy the Vampire Slayer, 'the mission is what matters'. Why else would we put up with these woeful salaries?

The members of the Coalition for Cheaper Books do not believe in books. For them, books are a SKU like cat food and Wettex. They believe in maximising their profit. There is a price for this. You pay that price already - it's called a lack of competition in the marketplace. The Grocery Choice website didn't even get off the ground because the major retailers stopped it. This is not a different fight we have here, for books. We want book choice. Currently we have it. And isn't it nice? This is not a fight of 'elites and elitists' versus everyone else. No one is more elite than a member of a board. What's going on now is pure greed. Dymocks et al can charge less for books any time they want - they pay less than half the RRP of the book, so they can just charge that if they want. But they don't want. They want to pay even less than they already do, and then charge the same. It's called making a profit. Making a profit is something most publishing companies hope to do and often don't. It's something most writers will never have the luxury of doing. And they're the elite? Pah. There are about five authors in this country who earn an hourly rate commensurate with their skill.

I could go on and on about this. I already have. But if you're sitting on the fence, let me break it down in non-book, cold economic terms. Whenever you pay less for something than it is worth, someone loses. The loser is NOT going to be the public company that sells you the product; it is going to be the primary producer. This is the lesson our farmers have learnt. This is the lesson Australian writers are about to learn. If you value your Australian stories and the films and TV shows that are made from them - such as Underbelly - you will value the writers who created those stories. They are irreplaceable.

Friday, July 17, 2009

The sky is probably falling

Well, the Productivity Commission, in its wisdom, has decided to kill the Australian publishing industry. Okay, that's being dramatic - they've decided to cut off its legs and not cauterise the wounds.

A publisher I spoke to yesterday remarked that, between the changes to publishing due to the digital world and the PC's recommendations, we'll all be lucky to have jobs within five years. My attempt at putting a positive spin on it all is to say that at least I've been given three years' notice to find a new career.

This may all sound a bit Chicken Little-y to those who are on the outside of the industry, but the potential consequences of the PC's recommendations - that parallel importation restrictions (PIRs) are removed and that Australian territorial copyright be worthless - are far reaching and devastating. The PC may feel that PIRs are restrictionist and anti-free market (Yay, free market! Free market that allowed subprime mortgages to flourish!) but the fact remains that their removal will benefit only UK and US publishers and will probably mark the end of the Australian publishing industry as any real force. The threat is THAT real and THAT upsetting.

The federal government can do one very simple thing to make books 'cheaper', if that is the real intention of the PC: Mr Rudd could remove the GST on books and anything to do with books. No GST on the book designer's fee; no GST on the printing company's fee; no GST on the freight charges; no GST on the purchase price. That would immediately bring about a drastic reduction in the price of books. But it's not really about that, is it? I wouldn't be the first person to point out that it's a bit iffy that ALP stalwart Bob Carr, the former premier of NSW (that gloriously functioning free-market economy), is on the board of Dymocks. Dymocks were the main driver behind the PC conducting this review, a review which was also pushed for under the previous government but which was mysteriously left alone by those renowned free marketeers John Howard and Peter Costello.

Some people I know are suggesting that the recommendations are actually a form of 'anti-elitist' strike - a 'let's take down those snobby publishing people a peg' thing. Maybe. Human motives are always complex, but I know this for sure: no company (private or public) with shareholders - such as Dymocks, Coles or Woolworths - is going to do anything that saves their customers money. They are businesses. They want to make money for themselves. And that's fine - that's what they are charged to do under the Corporations Act. However, they have been allowed to get away with the argument that evil publishers and greedy authors are just taking customers' money and only they - publically listed companies - are putting the customers' interests first. What I find even more remarkable is that the real media story has not been this landmark event - public companies as charities.

It's been good spin. It's worked - on the Productivity Commission. But don't let it work on you. If the PIRs are lifted, the members of the Coalition for Cheaper Books (Dymocks et al) will pay less for the books they sell, but they'd be in defiance of their duties under the Corporations Act if they didn't try to maximise returns for their shareholders - and that means charging customers whatever they think they can get away with. By that time, it will be too late for anyone to protest that this is not what was supposed to happen. By that time, our industry will be on its knees and the number of Australian stories finding their way into the world will be greatly reduced. And that affects our film and TV industries - who often draw material from books; it affects our radio, TV and print media who rely on authors for stories; it affects our culture, quite apart from the economic ramifications.

There has been some hand-wringing in the industry about digital publishing and the wave of imminent change that faces us. I'm not worried about that - I think it's exciting, and if we could all get on board and embrace the change, there's no telling what innovation may be found. No, digital publishing is not the enemy. Frighteningly - heart-sickeningly - the enemy has come from within. We are all now holding our breath to see whether our federal government - our arts-loving, job-saving government - is going to ensure that we are all out of jobs within five years; whether they are willing to see the immense talent and passion in the publishing industry just bleed into the ground.

I'm not being dramatic, I promise - my mother beat it out of me (not literally) quite young. I was even, initially, trying to be pragmatic about this whole thing. We'll be right etc etc. But we won't be right. We will be far from right. And we will certainly not have cheaper books.

If you feel like you want to do something but aren't sure what, now is the time to write to your local federal MP - particularly if they are in the ALP - and lobby them to not allow these recommendations to go ahead. And if you want to engage in mindful protest, you can join me - and others in the industry - in personally boycotting Dymocks. I'm also boycotting Coles and Woolworths, because of this and their petrol shenanigans. If we all think 'one person can't make a difference' there will be no difference. I'm also going to ask the Empire Gods to give us Barack Obama. Since the PC wants to send the industry back into the arms of empire - they want things to work they way they used to in the 1950s - at least let us get Barack. Because the UK sure as hell doesn't care about us any more. And there's no way Barack would let anyone do parallel imports in his country: he knows it's bad for business.

In closing, I am publishing, with permission, a letter that one of this blog's readers sent to the ABC:

RE: Cheaper Books, Don't Count on it.

Promising something that can't be proven is an old trick.

On the other hand, in government-speak, what can be examined is "demonstrated ability" to deliver. Pray, what precisely is Bob Carr's demonstrated ability? After what he did to NSW, who in their right mind, would let him even preside over a chook raffle?

The Australian Publishing Industry is only asking to keep the same protections that its US and UK counterparts enjoy. Nothing more. New Zealand's abolition of territorial copyright protections and opening up to parallel importation has done nothing good for its industry. Their people are now here, or anywhere, but in NZ.

Mr Rudd, knowing that the Productivity Commission Recommendations will cost many jobs, proposes simply to put more people on the public purse with "subsidies". Why not just leave them alone to keep earning a living and contributing to general revenue instead of drawing from it?

Anyone who believes the Coalition for Cheaper Books really intends books to be cheaper for consumers (particularly after their competition is decimated) is in for a double-take. Cheap, de-regulated milk? Cheaper fuel? Cheaper groceries? Surely, this trick has been done to death.

Theresa Lauf, Brisbane Fri 17 July 09

Tuesday, March 24, 2009

An update on parallel importation

I notice the so-called review of parallel importation has been done, and that public submissions will be called. Could you please educate us a little more about this and what the local publishing industry believes would be best? No doubt the ASA will do something calling on its members, however, many readers of your blog might not be members. http://www.abc.net.au/news/stories/2009/03/20/2521427.htm

Thank you for this question, because I didn't think to blog about the review - and I should have. I'm going to paste in below the press release from the Australian Literary Agents' Association, of which the agency I work for is a member, as it pretty much says everything I could say, but more concisely and clearly. I also advise you to read Henry Rosenbloom's blog post:
http://scribepublications.com.au/blog.


Media Release
Monday 23 March 2009

Bad news for Australian Authors


The Australian Literary Agents’ Association (ALAA) believes that the Productivity Commission’s draft report on Australia's Restrictions on the Parallel Importation of Books released on Friday 20 March is bad news for Australian authors.

The recommendation by the Productivity Commission—that the market be opened and that parallel importation of books be freely permitted except for the first 12 months in a book’s life—appears to be nothing other than meddling with an existing successful model with no predictable outcome, except the dismantling of an industry. It is excellent news for publishers and distributors in the United Kingdom and America.

The Productivity Commission believes that this will ‘preserve some certainty for local publishers to market new authors’, but what business is going to be foolish enough to spend many years and hundreds of thousands of dollars producing and distributing and marketing a new ‘product’—preparing the soil so to speak—only to have other businesses reap the benefits of their work and expense?

12 months is nothing in the life of a book. Marketing a book is merely the beginning of a successful book’s life. Books establish themselves within the community by word of mouth, that is, slowly and they last for generations. Under the proposed new regime just at the time an Australian book is finding its way in the market there would no longer be territorial copyright for the author. The books we all know and love—Voss, The Power of One, Cloudstreet, Oscar and Lucinda, Lilian’s Story, Tomorrow When the War Began, My Brother Jack, The Book Thief, Possum Magic—would essentially lose their homebase.

Territorial copyright is a right for all authors in the United Kingdom and America. Under the Productivity Commission’s suggested changes to the copyright law Australian writers will no longer be able to compete on the same terms with writers in these countries.

The Rudd Government claims to be committed to a creative Australia. Our authors are living it now, producing world-class books with the essential support of a thriving local industry. Australian writers are widely read outside Australia and have been awarded the world’s most prestigious literary prizes. They are able to attract such attention because they are first and foremost published with verve, commitment and passion here in Australia. In the past thirty years we have managed to keep Australian writers working at home and exporting their work. We do not want to return to the past and the possibility that Australian writers will have to go abroad and have their books published in another country to be better served by their publisher. Let us keep our industry flourishing and our authors here.

Monday, February 2, 2009

Territorial copyrights/parallel imports

You have commented briefly and provided a link on the topic of Parallel Imports and why they worry the Australian publishing and associated industries. I was wondering whether you could provide any further information about it, and contextualise Bob Carr’s recent essay in the Weekend Australian Review? From my very vague recollection, he was supporting the idea because it would provide Australians with access to cheaper books which is important for literacy in society, and also, because New Zealand was doing well with parallel importation. At the time, I didn’t take much notice of the article because I didn’t know anything about the issue’s significance and frankly, I don’t have a lot of time for Bob Carr.


As an adult fiction writer with something just about ready to start sending out, the thought of narrowing the chances for new and existing Australian authors worries me, but also because it would be dreadful if Australians weren’t able to read about Australians (written by Australians) again. The film industry has been devastated by the sheer volume of overseas content permitted on our television services and movies. What can we, as individuals, do to protest/object/resist before it’s too late? Or is it already too late? (I already support Australian writing by buying it).

I'm sorry I didn't answer this question in a more timely fashion - the dread Reading Pile again - because I could have pointed you to the submission guidelines for the Productivity Commission. Encouragingly, though, many people - including me - wrote submissions setting out the case against changes to the legislation and you can read those here: http://www.pc.gov.au/projects/study/books/submissions. I could attempt my own explanation of the issues, but then you'd probably be able to pick which submission is mine and there goes the whole Secret Agent thing.