Major Publishers Sue California College Bookstore Chain for Copyright Infringement
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Major Publishers Sue California College Bookstore Chain for Copyright Infringement

Five Publishers File Lawsuit to Enforce Copyright Law

DANVERS, Mass., January 26, 2004—Five major publishers have filed a copyright infringement suit against KB Books, a college bookstore chain in San Diego, California. Harvard Business School Publishing, The New York Times, Elsevier Inc., Pearson Education and John Wiley & Sons Inc. allege that KB Books has routinely produced and sold coursepacks to college students in the San Diego area without obtaining permission to use the content from the publisher or Copyright Clearance Center, the publishers' licensing agent. The publishers' complaint was filed recently in the U.S. District Court for the Southern District of California.

Copyright law ensures that publishers and other copyright holders are fairly rewarded for their investment in producing materials such as books, newspapers, journals and case studies. Revenues from the sale and reuse of their published materials fund author royalties and other expenses that support the creation of new works, scholarly endeavors and scientific developments.

"When copyrights are not respected, it has a direct and adverse impact on innovation and creativity," said Allan Ryan, director of Intellectual Property, Harvard Business School Publishing. "It is vital for individuals and businesses to recognize that disregard for copyright law is not only illegal, it also stifles progress. Our hope is that KB Books, and all offending organizations, will adopt copyright compliant business practices in the future."

KB Books operates copy shops located near the campuses of San Diego State University, Mesa College and San Diego City College. Like many college-area copy shops, it does a substantial business selling coursepacks, which typically include journal articles, excerpts from books, case studies and other materials selected by the instructor of a course as required reading. The copy shop photocopies and binds a collection of works into a customized coursepack which it sells to students for a profit. To comply with copyright law, the copy shop must obtain permission to distribute the materials it reproduces and pay royalty fees to the respective copyright holders as fair compensation. Usually, this is done through Copyright Clearance Center, the publishing industry's not-for-profit licensing and compliance entity. In this law suit, KB Books is charged with repeatedly failing to obtain the rights to reproduce and sell copies of the content belonging to the plaintiffs.

This lawsuit is being coordinated by Copyright Clearance Center as part of the company's ongoing enforcement and education programs to promote copyright compliance. Copyright Clearance Center helps businesses, academic institutions, copy shops, print centers and other users of copyrighted materials comply with copyright law through its range of licensing solutions. Copyright royalties collected are distributed to the publishers, authors or other copyright owners who have engaged Copyright Clearance Center as a rights management agent.

About Harvard Business School Publishing

Headquartered in Boston, Massachusetts, Harvard Business School Publishing is a wholly-owned, not for profit subsidiary of Harvard University. HBSP publishes for the general, professional, and academic markets. Its offerings include the widely-respected Harvard Business Review, books from the Harvard Business School Press, the newsletters Harvard Management Update, Strategy and Innovation, Negotiation, and Balanced Scorecard Report, a range of conference programs, elearning programs for management development, videos, course books and the world-renowned Harvard Business School case studies. For more information, please visit our website at http://www.hbsp.harvard.edu.

About The New York Times

The New York Times Company (NYSE:NYT), a leading media company with 2002 revenues of $3.1 billion, includes The New York Times, The International Herald Tribune, The Boston Globe, 16 other newspapers, eight network-affiliated television stations, two New York City radio stations and more than 40 Web sites, including NYTimes.com and Boston.com. For the third consecutive year, the Company was ranked No. 1 in the publishing industry in Fortune's 2002 list of America's Most Admired Companies. In 2003 the Company was named by Fortune as one of the 100 Best Companies to Work For. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.

About Elsevier Inc.

Elsevier Inc. is a U.S.-based unit of the international Elsevier science and medical publishing business (www.elsevier.com), headquartered in Amsterdam, The Netherlands. Elsevier is the world's leading scientific, technical and medical information provider and publishes over 1,600 journals as well as books and secondary databases. Elsevier's two parent companies - Reed Elsevier PLC ("REL") and Reed Elsevier NV ("REN") - are listed on the London and Amsterdam Stock Exchanges. Both Reed Elsevier PLC (NYSE: RUK) and Reed Elsevier NV (NYSE: ENL) are also listed on the New York Stock Exchange.

About Pearson Education

Educating 100 million people worldwide, Pearson Education is the global leader in educational and computer publishing. With such renowned brands as Pearson Prentice Hall, Pearson Longman, Pearson Addison Wesley, Pearson Benjamin Cummings, Pearson Scott Foresman, Que, Sams, Peachpit, and many others, Pearson Education provides quality content, assessment tools and educational services in all available media, spanning the learning curve from early childhood through college and beyond. Pearson Education is part of Pearson (NYSE: PSO), the international media company. Pearson's primary operations also include the Financial Times Group (publisher and distributor of business and financial business worldwide) and the Penguin Group (publisher of an unrivalled range of fiction and non-fiction, bestsellers and classics, children's and reference works for audiences in over 100 countries). More about Pearson and Pearson Education's Internet sites can be found at www.pearson.com and www.pearsoned.com.

About John Wiley & Sons, Inc.

Founded in 1807, John Wiley & Sons, Inc., provides must-have content and services to customers worldwide. Its core businesses include scientific, technical and medical journals; encyclopedias, books and online products and services; professional and consumer books and subscription services; and educational materials for undergraduate and graduate students and lifelong learners. Wiley has publishing, marketing and distribution centers in the United States, Canada, Europe, Asia and Australia. The company is listed on the New York Stock Exchange under the symbols JWa and JWb. Wiley's Internet site can be accessed at www.wiley.com.

About Copyright Clearance Center, Inc.

Copyright Clearance Center is the world's largest licensing agent for text reproduction rights and provider of licensing services for reproducing copyrighted materials in print and electronic formats. A not-for-profit organization founded in 1978, Copyright Clearance Center provides rights management for more than 1.75 million works represented by more than 9,600 publishers and hundreds of thousands of authors and other creators, either directly or through their representatives. In addition, the company provides more than 10,000 corporations and subsidiaries (including most of the Fortune 100), as well as thousands of government agencies, law firms, document suppliers, libraries, academic institutions, copy shops and bookstores, with comprehensive licensing services. Copyright Clearance Center can be found at www.copyright.com.


Copyright Clearance Center and the Copyright Clearance Center logo are registered trademarks of Copyright Clearance Center, Inc.