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image image You may be out of luck if you want to borrow a library e-book by Stephen King or Bob Woodward or other titles published by Simon & Schuster.

“We have not found a business model that works for us and our authors.” That’s how the NYT’s Motoko Rich quotes S&S spokesman Adam Rothberg on why the publisher won’t let public libraries distribute its e-books.”

In Libraries and Readers Wade into Digital Lending, she says that “About 5,400 public libraries now offer e-books, as well as digitally downloadable audio books.” Along the way, she quotes  librarians as objecting to the higher prices that libraries often pay for e-books. Many publishers aren’t enchanted by the idea of one copy serving a number of readers.

TeleRead, anyone? Both S&S and the libraries would be better off if writers and publishers received usage-based compensation from a national digital library fund—financed perhaps by a very small tax on Internet–related goods and services.

The idea wouldn’t be to replace bookstores; rather, provide yet another business model appealing to the public’s desire for “free,” while still paying creators. There could even be cost-justification, by encouraging the use of hardware fit not just for e-books but also e-forms for purposes ranging from e-commerce to tax and health forms.

Perhaps the service could start out focused on educational and public domain materials, as well as older copyrighted books. That would be one way to reduce the threat of Washington discriminating against writers with the wrong politics. Yet another way would be to make the system decentralized and preserve choices for local libraries.

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