NJ libraries squeezed as e-book prices soar and licenses expire

📚 NJ libraries say e-books cost 3 to 5 times more than print

💸 Officials warn millions in taxpayer dollars are spent with no power to negotiate
⚖️ New Jersey bill aims to curb high e-book costs

HOBOKEN — It seems that more and more people are reading digital books these days.

NJ libraries face soaring e-book costs and restrictive licensing rules

Unfortunately, libraries are paying more than double the print cost of e-books, and what’s worse is that every digital license libraries pay for expires after two years or after a set number of check-outs, forcing them to repurchase the same popular titles again and again, says Jennie Pu, director of the Hoboken Public Library.

Libraries are spending more every year and going back to zero every two years.

“Libraries have no ability to negotiate the price or the terms. A handful of publishers set all that, and libraries either accept it or we can’t offer that book,” Pu said.

Libraries are spending millions of taxpayer dollars a year and have the same negotiation power as someone who is clicking “accept” on a terms of service agreement, she said.

Why e-book pricing for libraries is higher than consumer costs

For example, when a consumer buys an e-book for themselves, they pay about $13 and have access for as long as they want. But, when a library licenses that same title, the library pays $55 or more, and that license expires after two years, Pu explained.

“That’s three to five times the price for temporary access. Most importantly, we can’t negotiate any of that,” Pu said.

ALSO READ: Starved to 3 lbs., helpless dog dumped in crate to die in NJ 

New Jersey bill targets e-book pricing and library access reform

New Jersey, however, is one state that is working on legislation to curb excessive pricing and restrictive licensing terms under a bill sponsored by state Sen. Andrew Zwicker, D-Middlesex.

In his bill, S1674, Zwicker asks a very simple question, “Why do public institutions spending millions on digital books have zero ability to negotiate the terms?”

This bill says that when taxpayer money is being spent on digital content, there should be basic standards around pricing transparency and licensing terms. Right now, there are none, Pu explained.

“Publishers set the terms. Libraries accept them, and the public has no visibility into how the money is being spent. Senator Zwicker is saying that’s not how public spending should work,” Pu said.

In addition to expiring licenses, Zwicker’s bill would also limit the mandate surrounding the number of e-book checkouts a library is allowed. It’s really about making sure that taxpayers and libraries come to the table to discuss how they can access this content on a sustainable basis, Pu said.

E-book access challenges impact seniors, students, and commuters

Current industry standards are not sustainable and don’t allow libraries to provide free, equitable access to reading materials, especially e-books and audiobooks that have become more important to homebound seniors, and those with disabilities or mobility issues, Pu explained.

“People with accessibility needs who need the adjustable text or audio; it’s not just a preference. It’s really the only option,” she added.

Some students and commuters can’t get to the library during regular business hours. So, these digital collections are the only way they can access these titles.

Pu said libraries are spending more to maintain the same level of access, and the people who depend on the library the most, feel it first, such as long wait times for a title.

Every dollar that goes toward an e-book license is money that can’t be spent on staffing, programming, or other book titles.

“It’s like a treadmill. The people who can least afford it are the ones stuck on it with us,” Pu said.

Concerns over the legislation

There are concerns about the legislation, however, particularly from the Association of American Publishers.

“Legislation, such as what is currently being proposed in New Jersey, has been ruled unconstitutional in Federal court. This legislation not only raises major legal concerns, but it also poses a direct threat to authors, local New Jersey bookstores, and the state’s larger creative economy, said Kathryn Rexrode, chief communications officer of the Association of American Publishers.

Rexrode goes on to say that the legislation being proposed by Zwicker sets a "dangerous precedent."

"By taking away the rights of authors, this legislation sets a dangerous precedent for creators across film, music, and software. The practical impact of this bill would be to likely limit, rather than expand, access to eBooks and audiobooks through local libraries,” Rexrode said.

Other states are getting on board with this issue

Lawmakers have unsuccessfully tried in other states to change all of this, as librarians have pleaded for legislative action.

Maryland became the first state in 2021 to pass a law requiring “any publisher offering to license an electronic literary product to consumers in the state to also offer to license the content to public libraries on reasonable terms.” The Maryland General Assembly unanimously passed the bill and went into effect in 2022.

However, the Association of American Publishers successfully argued that the Maryland law violated federal copyright law, and a federal judge blocked Maryland’s law in 2022 as unconstitutional.

In 2021, New York Gov. Kathy Hochul vetoed a bill over similar copyright concerns.

Last year, Connecticut passed a similar bill with overwhelming bipartisan support in the Senate. Rhode Island and Minnesota introduced similar legislation, Pu said.

“Connecticut’s law includes a trigger clause. It activates when enough other states pass similar legislation. So, New Jersey’s population alone would meet that threshold. We’re no longer talking about one state going at it alone against national publishers. We’re talking about a coordinated response to a national problem,” Pu said.

Libraries are an integral part of the reading ecosystem, so it’s important to make sure this ecosystem works for everyone. Right now, libraries across the country don’t have a voice in how the digital part of that ecosystem operates.

“So, Sen. Zwicker’s bill is a step toward changing that, and the fact that states across the country are moving toward the same conclusion, at the same time, tells you that this is a real structural problem,” Pu said.

However, the Association of American Publishers does not believe the proposed bill in New Jersey is similar to the bill passed in Connecticut. “We believe it would not trigger the Connecticut bill.”

Report a correction 👈 | 👉 Contact our newsroom