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Random House, Inc. v. Rosetta Books LLC | 150 F. Supp. 2d 613 (2001)
Back in the late 1990s, electronic books, or e-books, were an emerging publishing format. At that time, many existing author agreements didn’t explicitly mention electronic-media rights. In Random House versus Rosetta Books, one publisher asked a court to read between the lines.
Random House, a book publisher, had written agreements with authors William Styron, Kurt Vonnegut, and Robert P. Parker. Each agreement contained a first paragraph granting Random House certain exclusive uses of the author’s copyright, such as the right to publish, quote, “in book form,” unquote. Each first paragraph had separate grants of exclusive licenses for reprints, abridged books, and Braille editions. All authors manually crossed out certain grants, thereby retaining those rights. Beginning in 2000, Rosetta Books signed agreements with Styron, Vonnegut, and Parker to electronically publish e-books of works under an agreement with Random House. Rosetta then included the e-books in its online store. Once purchased, e-books were viewable on electronic hardware like laptops and e-book readers. Although the content of Rosetta’s e-books was identical to traditional books, the e-book format had additional features, like searchable text and bookmarking. Random House sued Rosetta for copyright infringement in the United States District Court for the Southern District of New York, alleging that Random House’s author agreements reasonably covered e-book rights. Random House filed a motion for a preliminary injunction to prevent further electronic publication of the authors’ works.
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