Posted by David Post:
Kindle 2 Speech:
http://volokh.com/archives/archive_2009_02_15-2009_02_21.shtml#1235230368


   There's an interesting little [1]copyright kerfuffle afoot in regard
   to the release of version 2 of Amazon's Kindle e-book device. The
   Kindle 2 incorporates a "text-to-speech" function; that is, for books
   that you download onto your Kindle, a function is provided whereby you
   press a button and the device translates the text into
   computer-generated speech.

   Cool stuff. The Author's Guild, on behalf of book authors, is not so
   enthusiastic. It [2]is asserting -- thus far, only in public
   statements, and not in any court proceedings, though they may come --
   that the Kindle 2 functionality infringes the copyright holder's
   rights to create "derivative works," and, therefore, is not within the
   license granted by authors to amazon to distribute their works on
   Kindles. [The National Federation of the Blind, incidentally (and for
   obvious reasons), [3]disagrees]

   It's a knotty copyright issue, actually -- though I'm reasonably
   certain that Amazon has the better of the argument. Here's how it
   looks to me. Amazon already has the right to "reproduce" and
   "distribute" the books it sells in Kindle format -- under the terms of
   which the copyright holder gets a royalty for each
   reproduction/distribution. So far so good. The license covers
   reproduction and distribution only; it does not give Amazon the right
   to "publicly perform" the copyrighted work, or to "create derivative
   works" based on the copyrighted work.

   A sound recording of the book -- an "audiobook" -- is, clearly, a
   "derivative work" under copyright law. In the Copyright Act, a
   "derivative work" is defined to include "sound recordings . . . or any
   other form in which a work may be recast, transformed, or adapted,"
   and "sound recordings," in turn, are defined as "works that result
   from the fixation of a series of musical, spoken, or other sounds."
   Because the audiobook "fixes" sounds (onto a CD, or a computer disk,
   or some other tangible medium), it's a derivative work. So when
   Audible.com sells you an audiobook copy of a book, they need a
   "derivative works" license from the copyright holder.

   Pre-Kindle 2, in other words, copyrightholders have two separate
   sources of licensing revenue: Amazon (for the reproducing and
   distributing copies their book) and Audible (for making "sound
   recordings" = "derivative works" based upon their book).

   Along comes Kindle 2. There's no "audiobook" involved in the Kindle
   transaction. The copy that customers receive is just the (marked-up)
   text, in Kindle format - same as before. The sounds are generated
   on-the-fly when the user presses the right button -- the sounds aren't
   "fixed" anywhere, i.e. they're not stored separately from the text
   itself. Therefore, no sound recording; therefore, no derivative work;
   therefore, no additional royalty revenue for the copyrightholder.

   There may be more to it than this - the Author's Guild may be able to
   come up with an argument that the generation of the sounds, while not
   a "sound recording," nonetheless creates a derivative work because it
   "recasts, adapts, or transforms" the original work into a new medium.
   There are some messy precedents out there on which they may be able to
   rely to make this argument. I doubt it, though. They face a very
   difficult slippery slope -- if Amazon needs a separate license because
   Kindle 2 is creating a derivative work, then presumably so does
   everyone who reads a book out loud, even to him/herself. That looks a
   little harsh to me, and I very much doubt that that's the law.

References

   1. 
http://online.wsj.com/article/SB123419309890963869.html?mod=yahoo_hs&ru=yahoo
   2. 
http://www.authorsguild.org/advocacy/articles/e-book-rights-alert-amazons-kindle-2.html
   3. http://www.nfb.org/nfb/NewsBot.asp?MODE=VIEW&ID=412&SnID=1916786125

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