Amazon Kindle: DRM Issues*

            

Details


Case Code : CLBE008
Publication date : 2008
Subject : Business Ethics
Industry : Publishing, Electronics
Length : 04 Pages

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

This short case study discusses Amazon's remote deletion of two eBooks from its customers' Kindle eBook readers, without their permission, or even their knowledge. The move was widely criticized and raised questions about Amazon's DRM policies. The case also describes some other instances where Amazon had followed similar courses of action, and also examines the question whether these actions could have an adverse effect on the sales of the eBook reader.

Issues:

Digital Rights Management.
DRM for eBooks.

Introduction

On July 17, 2009, online retailer Amazon Inc. (Amazon) remotely erased two eBooks from the Kindle eBook readers of its customers. Later, it emailed these customers that it had deleted Animal Farm and Nineteen Eighty-Four - two books by George Orwell - from their devices. The email also said that the Kindle accounts of the customers had been credited with the price of each of the eBooks, i.e., US$ 0.99.

Amazon stated that it had removed the eBooks because they were unauthorized editions and the ‘publisher’ of the eBooks did not have the rights to sell them...



Questions for Discussion:

1. Evaluate Amazon's response to the entire controversy. Considering its own interests, as well as the interests of other stakeholders, what were the alternative responses that it could have considered?
2. In your opinion, will Amazon action have a significant impact on Kindle's sales? Why, or why not?
Cases on Related Topic

1. Digital Rights Management
2. A Note on Future Trends in the Publishing Industry
3. Will Amazon be No.1 Forever?
4. Amazon Kindle: Pricing Issues

Key words:
Digital Rights Management (DRM), Amazon, Kindle, Big Brother, eBooks, eBook readers





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