Consequently, the existing restrictions on parallel importation still fulfil their intended goals – which relate entirely to distribution of physical books (which still make up the bulk of sales). Insofar as the application of those restrictions in ‘the digital era’ is concerned, Hachette Australia notes that the concept of parallel importation of ebooks has no application other than when an ebook is imported for commercial distribution in a physical medium (such as a CD or USB). This is, however, a mode of distribution that has simply not taken off. Rather, the business model for distributing ebooks is by way of download from a website (for example, from Amazon, Apple and other online distributors) or by way of digital delivery via email (as is necessary with digital reading devices such as Kindle). To the extent that other submissions may suggest that Australian consumers be permitted to buy from overseas digital retailers who otherwise are not authorised to sell into Australia, Hachette Australia makes the following brief comments. As with copyright rights generally, licensing of digital rights for ebooks occurs on a basis, and online retailers in other jurisdictions are licensed by publishers only to sell to those countries for which the publisher has rights (which in many cases, will reflect those countries in which third-party rights – such as in illustrations, cover art and quotes – have been cleared). Such territorial licensing is backed up by the metadata included in each ebook. As a result, any overseas retailer is not permitted to alter metadata to sell copies into the Australian market – and in the unlikely event that they did, given roughly 20% of trade consumer sales are now digital, authors and publishers stand to lose 20% of their income from Australian sales. In addition, were a retailer in another country to sell to consumers outside their licensed territory, then they would (potentially) be both in breach of their contractual obligations and authorising an infringement of copyright. Further, a consumer who successfully obtained in Australia an ebook for which the online retailer did not have Australian rights (including by using VPN technology to fool a retailer as to where he or she is located), may also be in breach of warranties concerning their location, may be infringing copyright by accessing a download or email that they are not authorised to receive, and would likely also lose – or not be able to rely on – consumer protection laws if
Consequently, the existing restrictions on parallel importation still fulfil their intended goals – which relate entirely to distribution of physical books (which still make up the bulk of sales). Insofar as the application of those restrictions in ‘the digital era’ is concerned, Hachette Australia notes that the concept of parallel importation of ebooks has no application other than when an ebook is imported for commercial distribution in a physical medium (such as a CD or USB). This is, however, a mode of distribution that has simply not taken off. Rather, the business model for distributing ebooks is by way of download from a website (for example, from Amazon, Apple and other online distributors) or by way of digital delivery via email (as is necessary with digital reading devices such as Kindle). To the extent that other submissions may suggest that Australian consumers be permitted to buy from overseas digital retailers who otherwise are not authorised to sell into Australia, Hachette Australia makes the following brief comments. As with copyright rights generally, licensing of digital rights for ebooks occurs on a basis, and online retailers in other jurisdictions are licensed by publishers only to sell to those countries for which the publisher has rights (which in many cases, will reflect those countries in which third-party rights – such as in illustrations, cover art and quotes – have been cleared). Such territorial licensing is backed up by the metadata included in each ebook. As a result, any overseas retailer is not permitted to alter metadata to sell copies into the Australian market – and in the unlikely event that they did, given roughly 20% of trade consumer sales are now digital, authors and publishers stand to lose 20% of their income from Australian sales. In addition, were a retailer in another country to sell to consumers outside their licensed territory, then they would (potentially) be both in breach of their contractual obligations and authorising an infringement of copyright. Further, a consumer who successfully obtained in Australia an ebook for which the online retailer did not have Australian rights (including by using VPN technology to fool a retailer as to where he or she is located), may also be in breach of warranties concerning their location, may be infringing copyright by accessing a download or email that they are not authorised to receive, and would likely also lose – or not be able to rely on – consumer protection laws if