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The e-book format continues to be a growing force in book publishing. Worldwide sales are predicted to reach nearly $10 billion by 2016 ' compared to $3.2 billion in 2011. Current publishing agreements offered by book publishers unambiguously transfer electronic rights as well as print rights. But whether licenses granted by authors in older book publishing agreements can be construed to embrace this new technology is a major question for the industry. The answer will determine whether traditional publishers, or authors and the digital startups that some of them now choose to license to, will control e-book publishing of lucrative classic titles. This issue has been raised for the second time in a decade in a lawsuit filed in the U.S. District Court for the Southern District of New York. HarperCollins LLC v. Open Road Integrated Media LLP, 1:2011cv09499.
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The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
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