TeleRead: Bring the E-Books Home

News & views on e-books, libraries, publishing and related topics
April 19th, 2009

DNAML’s eBabel push: 31,000+ titles by end of August; DRM zealots gone wild: ‘Single Device Activation ONLY!’

By David Rothman

image DNAML’s eBabellers are planning to pollute the e-book world with “over 31,000 DNL eBook titles” in this proprietary format by the end of August.

“We estimate that DNAML itself will release around 75,000 titles in the DNL eBook format over the next 12 months, with another 10,000 to 15,000 being produced independently by publishers and authors around the world,” the related news release quotes DNAML CEO Adam Schmidt.

Thanks, guys. So now, in a major way, e-book buyers may have to deal with your format, not just Adobe-DRMed ePub and the Kindle format. Oh, and I love your sensitivity toward fair use when publishers exercise the DRM option. “Single Device Activation ONLY! We protect your eBooks against illegal distribution.” Yep, the exclamation mark comes from DNAML.

imageOnly a control-freak publisher or a Luddite would love the above approach. Who cares if e-books don’t take off and grow the publishing industry’s profits? Isn’t DRM the real objective? Especially laughable is the DNAML huckstery’s use of the phrase “open DRM”? Open to pirates?

The good news

Wait. There is good news—in the sense that DRM looks less than ever like a solution, given all the uproar that could eventually come from consumers, especially with the single-device approach. Are we actually talking about a book being read on just one gizmo? If so, this is a major step backward.

No matter how easy DNAML might make it to turn an open ePub book into consumer hell, I’d urge the big boys to back away from this vendor. If the “single-device activation” is what I think it is, then DNL DRM will make Sony and Amazon look positively enlightened. Last I knew, Sony allowed up to six devices to be activated with the same ID. Even Amazon lets you do some sharing within your family. Talk about a consumer-hostile approach from DNAML!

And what’s this from the same hype-artists about “bulletproof” DRM? Is there any such thing? Sooner or later these systems almost always get cracked, and the U.S. FTC just might want to take a look at the phrasing here. I’ll leave it to the lawyers to work this out—I’m not accusing DNAML of violating the law. But if I were Random House, I would actually want to back off from DRM, which, in a generic sense, has a sorry track record. Even Microsoft’s DRM—especially Microsoft’s DRM—has been cracked.

From DNAML news release:

Publishers such as Harper Collins, Hachette, Random House, and Wiley are part of the initial rollout which includes 35 medium-to-large publishers as well as over 250 small publishers and self-published authors.

The initial rollout has accelerated recently due to the increasing popularity of the DNL eBook format amongst publishers. "Outsourcing centers in India are now approaching DNAML for training in mass scale conversion from ePub to DNL, prompted by a sudden increase in publisher demand," says Adam Schmidt, CEO of DNAML.

"We estimate that DNAML itself will release around 75,000 titles in the DNL eBook format over the next 12 months, with another 10,000 to 15,000 being produced independently by publishers and authors around the world," said Schmidt.

DNAML offers publishers a very flexible end-to-end eBook solution. With sophisticated design options, simple production/conversion processes, bullet-proof security, and a powerful distribution solution, the DNL format is the ebook format for the Netbook, PC, and laptop market.

As an option the DNL DRM (Digital Rights Management; see www.dnldrm.com) offers extremely powerful distribution tools that allow the publisher to maintain contact with eBook buyers. "The DNL DRM is an open system," explained Schmidt. "We strongly believe that publishers understand their customers and can market digital versions of the print book appropriately to them if they are given the ability to do so. Allowing publisher’s access to consumers that have purchased their eBook and have opted in to receive updates and further notifications of new offerings is uncommon within current book-distribution systems. However, we believe that this concept will catch on and publishers will be promoting directly to their customers just as software publishers have been doing successfully for over a decade now." said Schmidt

I hope that consumers who want to own their books for real will avoid DNL books, especially DRMed ones. If single-device activation is the order of the day, this just might be the most toxic of the current DRM options.

(Thanks to Medialoper’s Kirk Biglione.)

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13 Responses to “DNAML’s eBabel push: 31,000+ titles by end of August; DRM zealots gone wild: ‘Single Device Activation ONLY!’”

  1. allow the publisher to maintain contact with eBook buyers.

    That’s an interesting way to phrase “has an extremely high user support load due to constant requests for re-activation”.

    Sounds as though it doesn’t just work for a single device, it also only works for a single email address. I wonder if you’re allowed to change your postal address? Not that I’m willing to give them money to find out, it’s bad enough that Fictionwise has decided I’m not worth selling some books to without getting into a discussion about whether someone in Australia should be allowed to buy books for a device that’s only available in the US and UK.

  2. Thanks for reporting on this one David. There are so many things wrong with that DNAML press release, one hardly knows where to start.

    I find it stunning that some very large publishers, who are supposedly supportive of an ePub standard, are licensing content for distribution through this completely non-standard system. DNAML must have an amazing sales staff.

    The bullet-proof DRM claim is laughable, of course. It’s only bullet-proof because the format hasn’t been widely distributed yet. I know of one other company that makes similar claims to unbreakable DRM, but that’s because they have zero market share.

    Also, take a closer look at the costs associated with the “open DRM” system. 15% per transaction, plus a $0.50 transaction fee. Of course those fees don’t include the support costs associated with failed activations and angry customers.

    And what’s up with DNAML’s claims that support centers in India are clamoring for training on conversion of ePub to DNL? It’s an obvious dig at ePub, but it also implies that conversion to DNL from an open standard is not something that can be easily automated.

  3. All valid points, Kirk. Big thanks! Especially I appreciated your picking up on the aspersions against ePub. Of course this assumes that that typical ePub files from major publishers are in good shape. If they are not and ePubcheck isn’t catching enough, then the IDPF really needs to get serious about tools to improve QC. Let DNL give specifics. If it can’t, then it owes the IDPF a MAJOR apology. If it can, then the IDPF needs to do fixes. I’d welcome feedback from others.

    Thanks,
    David

  4. The PR sounds like the effort from a company to throw out every industry buzz-word they can, in order to build market-share from nothing. I would be amazed at any major publisher that swallowed this mouthful… but on the other hand, I’m already amazed at the mouthfuls the big pubs have tried to get us to swallow.

    I think it will be up to consumers to vote with their wallets on this one, and let DNAML die an ignominious death…

  5. Yeah.

    DNAML = Don’t Know Anything Markup Language.

  6. You could put it in small words for those with no tehkanlojikul bakhgrownd.

    Can see = can copy.

  7. Interesting comments all.

    I would like to start with a simple fact that you all seem to be forgetting or not realising.

    DNL eBook format produced by DNAML provides the publisher with a choice. Protect with the DNL DRM ebook security system or release the eBooks without protection.

    To date only one publisher we have spoken with has asked me to release eBooks without protection, and we all know who that is.

    As much as the ideal world would be one where all consumers realise the need for publishers and authors to be paid, as such purchase the eBooks rather than obtain them free of charge, we have to be realistic and face the fact that this is just not going to happen.

    As a second point relating to ePub. DNL format was the first ePub reader on the market. We don’t promote it as such but the fact is that over 13 months ago we demonstrated live on stage in New York at the IDPF show the auto processing function to turn an ePub into a friendly end user readable ebook for PC’s. Laptops and UMPC’s.

    The DNL eBook format is not just an eBook reader, it comes bundled with multiple functions which allow for the end user to enjoy their reading experience.

    We as a company are working on further exploring the ePub opportunity and one of the first tools we will be releasing shortly will be an ePub builder/converter. This will allow publishers to create ePubs in a simple manner and we hope to reduce the current price of conversion to ePub so that the rest of the publishers whom today are finding it impossible to justify conversion to ePub will be able to do so.

    As a final comment, I find it extremely interesting that you guys are jumping on the protection issue rather than investigating the DNL value offering to the publishers. A choice is what we offer, it’s not your decision nor is it our decision to make eBooks available without or with DRM. We provide the options and Authors and Publishers choose.

    Regards

    Adam Schmidt

    Chief Executive Officer

    DNAML Pty Ltd

    Creator of the DNL eBook format.

  8. “As much as the ideal world would be one where all consumers realise the need for publishers and authors to be paid, as such purchase the eBooks rather than obtain them free of charge, we have to be realistic and face the fact that this is just not going to happen.”

    There is so much wrong with this that I hardly know where to start. You are going into a business relationship assuming all your customers are criminals? There’s a way to establish a client base. Also, your assumption is totally false. iTunes Music Store, eMusic and other music vendors have proven that people are more than willing to pay fair prices for something they can get for free. You just have to make it safe, easy and reasonable for them.

    And single-use activation is NOT reasonable. I went through this already with one device I owned, and vowed never to again. What if the one device gets lost? Or stolen? What if I upgrade to a new device that you yourselves have made? Customers need to have a way to move their purchases with them—otherwise, it’s not a purchase, it is a rental and you need to lower your prices to accommodate this reality and the loss of ownership that you are imposing on your ‘customers.’

    Also, regarding the value you are offering to the ‘publishers’ there is your problem right there. The publishers are not the ones buying your end product. So really, their needs are not nearly as important. They can ‘want’ whatever they want, but nobody is going to buy it. And I for one will VIGOROUSLY use any platform at my disposal—blogs, reviews, etc—to point out the flaws in business models like yours whenever possible to ensure that the DRM model fails, because what you are doing—charging inflated retail prices for products which you cripple so unwitting customers who have not done their research are robbed of their fair use rights—is absolutely criminal, and the only way the publishers will come to their senses on this is if people vote with their wallets. By banking on the publishers and not the end users, you are betting on the wrong ship, Mr. Schmidt. I’d get out while the getting out can be gotten if I were you.

  9. you say: “Also, your assumption is totally false. iTunes Music Store, eMusic and other music vendors have proven that people are more than willing to pay fair prices for something they can get for free”

    Last time I looked iTunes is totally DRM’ed I use it on a regular basis and I can install on multiple devices but it is definitely DRM’ed.

    With respect to DRM and number of activations, again this is the publishers choice. There are publishers that offer multiple activations and some offer just one. We are a technology facilitator that provides the options to publishers and authors. The ultimate decision is in the hands of the IP owner as to how they protect, distribute and present their eBook.

    you say: “You are going into a business relationship assuming all your customers are criminals?”

    You are deliberately making statements to suit your purpose. These are wrong statements as at no time did I suggest that all consumers are criminals. I will make the point that piracy exists and if some consumers are offered the ability to obtain eBooks without payment they will do this. This is an undeniable fact which has been proven over and over in the Software and music industry.

    you say: “The publishers are not the ones buying your end product. So really, their needs are not nearly as important.”

    That is an interesting point you make. I wonder how publishers would respond to this.

    In all consumers are the main game so their needs need to be satisfied. However, it is a give and take situation. I would imagine that most good people will understand that the publisher and author has the right to protect their product from theft. This is the case in physical world where Books are protected inside the store through all types of PRM – Physical Rights Management

    In all I am not sure why you are so brutal in your response – seems to me that you are trying to force a point down peoples throat. I am trying to do the opposite, I want to provide choice and let the market decide. Is this so wrong?

    you say: “charging inflated retail prices for products which you cripple so unwitting customers who have not done their research are robbed of their fair use rights—is absolutely criminal, and the only way the publishers will come to their senses on this is if people vote with their wallets.”

    You either know nothing about this industry or you are simply being a pain. Publishers set’s the DLP and provide the retailer with discount. The price is what it is and again it is not set by us. We sell on a recommended retail basis however in some cases we discount to promote. Let’s just say that eBook.com when launched will be extremely competitive.

    you say: “By banking on the publishers and not the end users, you are betting on the wrong ship, Mr. Schmidt.”

    You have clearly either not read my response or you are simply attempting to blur the facts. I bet it’s the latter, so let me repeat again – it’s about choice and we provide more choice than any other technology – including the right of the publisher to issue the eBooks without DRM.

  10. This is what iTunes says – it is clear – so once and for all stop blurring facts

    The fact is that it is about publisher choice, and this is exactly what iTunes does and what DNAML provides.

    Extract from the latest iTunes store help for your personal satisfaction.

    Usage rights for iTunes Store purchases

    Many of the songs you purchase from the iTunes Store are protected by Digital Rights Management (DRM). These protected purchases can be:
    Played on up to five computers
    Synced with your iPod
    Synced with or streamed to your Apple TV
    Burned to audio CDs or DVDs (as part of a playlist) up to seven times
    The iTunes Store also offers songs without DRM protection, from participating record labels. These DRM-free songs, called iTunes Plus, have no usage restrictions and feature higher-quality encoding.
    If you already have iTunes Store purchases that are now available as iTunes Plus downloads, you may upgrade your existing purchases. To do so, visit the iTunes Store and follow the onscreen instructions.

  11. Logan Kennelly Says:
    June 1st, 2009 at 2:29 pm

    I appreciate your taking the time to post here, but ficbot raises some good points that you should consider.

    I’ll start by discussing iTunes as it is an interesting case. There were many online music storefronts before Apple’s, but none of them gained the same amount of traction. One of the key differences was that only Apple’s music worked on the device that everyone wanted (namely, the iPod). There is currently no such device in the eBook market and, until there is, you should probably wish to cater to all devices. Since the major manufacturers are currently busy setting up their own fiefdoms, it will be difficult for you to enter into the market with a new, incompatible DRM. The other aspect of iTunes that helped with its success was that customers found the DRM acceptable: unlimited devices, easy switching of computers, and, in a pinch, they could convert their music to DRM-free CDs. These days iTunes is almost completely without DRM after publishers found that the DRM was simply holding the market back.

    The other problem, as ficbot alludes, is that, as a middle man, your market priority is at odds with what you’ll find here. It sounds great that your technology is flexible enough to give publishers the level of control that they ask for. Unfortunately, you are also allowing publishers to shoot themselves in the foot. It may be easy to sell to the publishers today, but if the end users won’t buy the product then your technology is going to have trouble entering the marketplace (allowing your less-”flexible” competitors to pass you by).

    From a consumer standpoint, DNAML will be viewed as the lowest common denominator. That is to say, it is the format that isn’t supported on any of my devices, can’t be backed up, won’t work with any of reading software, and, probably, won’t let me copy short passages or use my TTS software.

    Perhaps in the future the TeleRead community will look back at its ignorance, but what you are asking for is a really hard sell for the informed reading community.

  12. Sounds like a great big fail to me. DNAML may be offering publishers a choice and “letting the market decide” but if they pay any attention at all to the music industry’s tribulations, “the market” has already decided–and continues to decide that legal downloads that are not fairly-priced and not portable…are not their choice.

    Publishers have a choice to release their product with crippling, single-device DRM. They also have a choice to release their product in demotic hieroglyphics. But they must live with the free-market consequences of only selling a handful of those releases in either case.

    I’m sure this company has a very nice product. But as an avid ebook reader, I’m sticking with ePub, and spending my ebook dollars with publishers who offer it.

  13. Adan, you have a lot of misinformation. You state that iTunes is completely DRMd ‘last time [you] looked.’ Well, that must not have been very recently because they sell a lot of DRM-free music these days! Look again.

    “With respect to DRM and number of activations, again this is the publishers choice”

    Again, my point is that this is betting on the wrong horse because the publishers are not the ones actually shelling out money to buy this stuff, the customers are.

    “if some consumers are offered the ability to obtain eBooks without payment they will do this. This is an undeniable fact which has been proven over and over in the Software and music industry.”

    It has also been proven that many customers will not. I offer as proof the Jane Siberry experiment, in which this popular Canadian indie folksinger offered her entire catalogue on-line under a ‘pay what you think it is worth’ scheme. Less than 20% of customers chose to pay nothing, and of the 80% who did pay, more than half paid MORE THAN the suggested price.

    I offer as secondary proof the more than one BILLION paid iTunes downloads. If you make is easy and affordable for people to get it legally, they will. Are some people going to try and cheat the system? Maybe. But some people are also going to shoplift candy bars from the grocery store. That’s part of life, part of doing business in ANY industry. I for one am very tired of the software and music industry trotting this out as something that makes them special.

    “The price is what it is and again it is not set by us.”

    I suggest then that it is in your best interest to make the publishers come around on this on our behalf, because customers will NOT pay retail prices for items which give them LESS privileges and in fact prevent them from doing things to their own owned stuff that the law permits. This is why I am so zealous about preventing people from being taken advantage of by business models like yours; I believe it is deception. People like my mom, who is not tech-savvy, might buy a product like this and then be frustrated when she (for example) buys a new computer and is unable to transfer her paid for purchases. If it’s a rental and not an ownership, it should be priced accordingly. The only type of DRM I support is a built-in expiration date for rentals such as library books. But if I *buy* it, I expect it to be mine, and there *are* ways for publishers to protect themselves with reasonable means that do not impede on the customer’s ability to enjoy their paid for content (for example secure eReader which uses social DRM but does not limit the reader on number of downloads/devices etc.) If you think outside the box, there are ways that are fair to BOTH sides, and it is those kinds of solutions I advocate for.

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