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Waterstone's halts overseas e-book sales

Waterstone's has stopped selling e-books to customers outside of the UK and Ireland in order to comply with the legal demands of publishers regarding the territories into which it can sell digital titles.

Waterstone's spokesman Jon Howells said the stop had been very recently brought in and had come into force last week. "It is basically due to rights of controlling where we sell books to," said Howells. He said from now on customers will need to have a UK billing address in order to purchase e-books. "This is not a temporary move," said Howells.

A letter sent out to customers said: "We regret that as of 20th October 2010, we are no longer able to sell e-books to customers placing an order from anywhere outside of the UK and Ireland. We have had to take this action to comply with the legal demands of publishers regarding the territories into which we can sell e-books."

The letter states that previously purchased e-books will not be affected by this and will still be available from online accounts.

This move comes after an exclusive investigation by The Bookseller into territoriality controls on Amazon. The Bookseller managed to crack Amazon's territorial controls and buy 10 US Kindle editions of titles. Publishers called territoriality on the online retailer "on the verge of non-existent".

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I don't think this is a bad thing; the big W (does anyone call it that any more?!) has reacted quickly to this and have let their customers know. I'm sure at some point there will be a facility (spelling?) to order e-books via Waterstone's website outside of the UK.

And those publishers - not many, but I can think of at least three without trying - who license world rights, and are very happy for Waterstones to keep on selling to any customer anywhere? Has that baby been thrown out with the bath water?

Is this even legal in the single EU market (for EU customers)?

What's the truth behind this? I understand that legally the point of sale of an e-book is where the customer resides (as opposed to physical books which is the retailer's location) so this must be the basis for this imposition of territorial rights by publishers BUT to my knowledge, many English language e-books do NOT have territorial rights restricted to the UK only (I checked last month on Nielsens Online Book Data). It should be easy enough for retailer's systems to identify from the data Nielsens and/or the distributor/wholesaler provide what the geographic restrictions for an e-book are instead of using a sledgehammer to crack a nut. At the same time, publishers should ensure that Nielsens and distributors are given accurate information as to what the territorial restrictions for e-books are (based on the contracts in place) as it appears data integrity for e-books is generally poor and many publishers are reluctant to correct this until issues around pricing, royalties and territorial rights are clarified.

Take my book, Deadly Secrets, as an example - no geographic restrictions whatsoever and now, for example, english speakers people living in Spain (where the book is based) cannot buy the e-book from Waterstones, Smiths or Amazon (fortunately they can still buy it from a Spanish e-book retailer - if they can find the site, read Spanish etc.) but its the retailers, the author and the consumer who are suffering!

I don't pirate books - but it seems absurd to me that the publishers would rather NOT sell me a book I can easily download from a pirate site. Why not take my money? I am in the US, but I often bought narrow interest books from Waterstone's.

That's interesting, Bookseller. Do you run 'exclusive investigations' into publishers as well? Are Amazon not booksellers too? Who are you protecting and why? Like we don't know!

I'm surprised it took an 'investigation' to crack Amazon's territoriality controls. I'm more surprised that The Bookseller thought they were the only ones to try it (definition of the word exclusive ;-)). The eBooks future doesn't feature territoriality controls and publishers should wake up to this now. The future of book-selling, particularly in digital, is about connecting end-users directly with product and the publisher will play the biggest role in that. The ones that succeed will know where their niches, fans and target community groups hide out online and talk to them directly. It is laughable that you could communicate with such a community of say Steig Larsson fans but only point the ones that lived in your territory towards a retailer to buy the book. Just looking on my Facebook account, out of 200+ friends, at least 40% of them are non-UK based. If we publish (or I read) an amazing book that I want to recommend, territorial restrictions means some of them can't purchase at the link I send them. Ain't gonna last and it's counter intuitive to work online with that mentality. There will just be competing editions with marketing incentivising and driving people towards those editions. The books industry is so slow to catch on to what works online. I love digital directors - as if they have time to spend trying to break Amazon. WHO CARES, that's not going to help digital strategy.

In terms of the wording "in order to comply with the legal demands of publishers regarding the territories into which it can sell digital titles" - this is a bit misleading! Other online e-book websites manage to keep track of which countries they can sell certain books to, but Waterstones have obviously decided that is too difficult. I work for a multinational publisher, and I know we are working our hardest to sort out territorial rights & have our e-books available to consumers in our region ASAP. I understand it's frustrating, but the blame cannot be purely on the publisher - there are a few kinks, yes, but if Waterstones wanted to they could monitor where a customer was from and then limit which books they could access.

oh dear :-D

This is ridiculous. Have just discovered that I can't buy the ebooks that I spent time browsing for and adding to my Shopping Basket at Waterstones. (I am currently in Japan, but live in the UK). Absolute lunacy. I will seek (free) alternative options from manybooks.net. Waterstones and the publishers can contemplate their loss of potential earnings. A great business model for the publishing industry. Send your paying customers away.. FAIL!

Meanwhile, Uk publishers are oblivious to the fact that sites such as Amazon UK, WH Smith's or Foyles with a UK domain can't sell ebooks to customers in Ireland because digital territories are different to established rights areas ie. Great Britain and Ireland. It's laughable.

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