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Apple's mind-bogglingly greedy and evil license agreement

By | January 19, 2012, 1:32pm PST

Summary: Over the years, I have read hundreds of license agreements, looking for little gotchas and clear descriptions of rights. But I have never, ever seen a legal document like the one Apple has attached to its new iBooks Author program.

Update: This post is part of a series. If you find this topic interesting, I recommend you read these follow-ups as well:

I read EULAs so you don’t have to. I’ve spent years reading end user license agreements, EULAs, looking for little gotchas or just trying to figure out what the agreement allows and doesn’t allow.

I have never seen a EULA as mind-bogglingly greedy and evil as Apple’s EULA for its new ebook authoring program.

Dan Wineman calls it “unprecedented audacity” on Apple’s part. For people like me, who write and sell books, access to multiple markets is essential. But that’s prohibited:

Apple, in this EULA, is claiming a right not just to its software, but to its software’s output. It’s akin to Microsoft trying to restrict what people can do with Word documents, or Adobe declaring that if you use Photoshop to export a JPEG, you can’t freely sell it to Getty. As far as I know, in the consumer software industry, this practice is unprecedented.

Exactly: Imagine if Microsoft said you had to pay them 30% of your speaking fees if you used a PowerPoint deck in a speech.

I’ve downloaded the software and had a chance to skim the EULA. Much of it is boilerplate, but I’ve read and re-read Section 2B, and it does indeed go far beyond any license agreement I’ve ever seen:

B. Distribution of your Work. As a condition of this License and provided you are in compliance with its terms, your Work may be distributed as follows:

  •  (i) if your Work is provided for free (at no charge), you may distribute the Work by any available means;
  • (ii) if your Work is provided for a fee (including as part of any subscription-based product or
    service), you may only distribute the Work through Apple and such distribution is subject to the following limitations and conditions: (a) you will be required to enter into a separate written agreement with Apple (or an Apple affiliate or subsidiary) before any commercial distribution of your Work may take place; and (b) Apple may determine for any reason and in its sole discretion not to select your Work for distribution.

And then the next paragraph is bold-faced, just so you don’t miss it:

Apple will not be responsible for any costs, expenses, damages, losses (including
without limitation lost business opportunities or lost profits) or other liabilities you may
incur as a result of your use of this Apple Software, including without limitation the fact that your Work may not be selected for distribution by Apple.

The nightmare scenario under this agreement? You create a great work of staggering literary genius that you think you can sell for 5 or 10 bucks per copy. You craft it carefully in iBooks Author. You submit it to Apple. They reject it.

Under this license agreement, you are out of luck. They won’t sell it, and you can’t legally sell it elsewhere. You can give it away, but you can’t sell it.  Updated to add: By “it,” I am referring to the book, not the content. The program allows you to export your work as plain text, with all formatting stripped. So you do have the option to take the formatting work you did in iBooks Author, throw it away, and start over. That is a devastating potential limitation for an author/publisher. Outputting as PDF would preserve the formatting, but again the license would appear to prohibit you from selling that work, because it was generated by iBooks Author.

One oddity I noticed in the agreement is that the term Work is not defined. [Update: Yes, it is, as I noticed on a fourth reading. It's in an "Important Note" above the agreement itself: "any book or other work you generate using this software (a 'Work')." Of course, that uses the term "work" recursively.] It’s capitalized in the relevant sections of the EULA, and it clearly is the thing of value that Apple wants from an author. Leaving that term so poorly defined is not exactly malpractice, but it’s sloppy lawyering.

I’m also hearing, but have not been able to confirm, that the program’s output is not compatible with the industry-standard EPUB format. Updated: An Apple support document notes that “¦iBooks uses the ePub file format” and later refers to it as “the industry-leading ePub digital book file type.” But iBooks Author will not export its output to that industry-leading format.

My longtime friend Giesbert Damaschke, a German author who has written numerous Apple-related books, says via Twitter that “iBA generates Epub (sort of): save as .ibooks, rename to .epub (won’t work with complex layouts, cover will be lost).” Even if that workaround produces a usable EPUB file, however, the license agreement would seem to explicitly prohibit using the resulting file for commercial purposes outside Apple’s store.

As a publisher and an author, I obviously have a dog in this hunt. But what I see so far makes this program and its output an absolute nonstarter for me.

I’ll be writing more fully on this issue after I’ve had a chance to use the program and to inspect the EULA under a microscope.

Oh, and let’s just stipulate that I could send an e-mail to Apple asking for comment, or I could hand-write my request on a sheet of paper and then put it in a shredder. Both actions would produce the same response from Cupertino. But if anyone from Apple would care to comment, you know where to find me.

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Topics

Ed Bott is an award-winning technology writer with more than two decades' experience writing for mainstream media outlets and online publications.

Disclosure

Ed Bott

Ed Bott is a freelance technical journalist and book author. All work that Ed does is on a contractual basis.

Since 1994, Ed has written more than 25 books about Microsoft Windows and Office. Along with various co-authors, Ed is completely responsible for the content of the books he writes. As a key part of his contractual relationship with publishers, he gives them permission to print and distribute the content he writes and to pay him a royalty based on the actual sales of those books. Ed's books written prior to fall 2011 have been distributed by Que Publishing (a division of Pearson Education) and by Microsoft Press. As of November 2011, Ed is a partner in the independent publishing company Fair Trade Digital Exchange, which exclusively publishes his books.

On occasion, Ed accepts consulting assignments. In recent years, he has worked as an expert witness in cases where his experience and knowledge of Microsoft and Microsoft Windows have been useful. In each such case, his compensation is on an hourly basis, and he is hired as a witness, not an advocate.

Ed does not own stock or have any other financial interest in Microsoft or any other software company. He owns 500 shares of stock in EMC Corporation, which was purchased before the company's acquisition of VMware. In addition, he owns 350 shares of stock in Intel Corporation, purchased more than two years ago. All stocks are held in retirement accounts for long-term growth.

Ed does not accept gifts from companies he covers. All hardware products he writes about are purchased with his own funds or are review units covered under formal loan agreements and are returned after the review is complete.

Biography

Ed Bott

Ed Bott is an award-winning technology writer with more than two decades' experience writing for mainstream media outlets and online publications. He's served as editor of the U.S. edition of PC Computing and managing editor of PC World; both publications had monthly paid circulation in excess of 1 million during his tenure. He is the author of more than 25 books on Microsoft Windows and Office, including the recently released Windows 7 Inside Out.

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Top Rated

Who cares?
WinTard 19th Jan
@i8thecat4

It's Free??? And incredibly powerful, and will enpower teachers to teach, and make books more affordable for students and will help improve learning and education as a whole... Oh.. And it will probably put an end to powerpoint (thank god!!!)...


You've yet to see it, feel it, play with it, drive it, and you have the audacity to claim "Incredibly powerful"?

"Empower teachers to teach"? Did you get your education via iPads?

No need to read further, you should lay off the Kool-Aid for your own sanity...

Talk about dumbing down to the lowest common denominator...

If you want real software, look no further than Open-Source, not only free from costs, but also from strings-attached...

That's what Apple did, by ripping off FreeBSD for OS X and iOS.

Ripping off, by not putting back into the public domain.

Now attempting to rip off authors, to sell more girly pretty iStuff?

Have you not heard, iClay is fun too?

~~~~~~~~~~
The superior man understands what is right; the inferior man understands what will sell.
~ Confucius

Actually, I think most people accept the existence of qualia.
~ David Chalmers

All the carnal beauty of my wife is but skin deep.
~ Sir Thomas Overbury's, 1613

Just In

The article doesn't have to say...
emaleroland@... 14th Mar
Apple takes 30%, can reject your work, so you can't sell it through them and you can't sell it via anywhere else, even direct.

I bought my kid some crayons. He drew a picture. We sold it on his kids web site. The crayola and paper companies didn't require he sell it through their kids marketing programs and didn't ask for royalties nor did they keep us from selling it anywhere else. Do you get it now?
Wow.

At least it doesn't claim that having kicked the program's tires you can't ever publish anything by any other workflow again. That's for version 2.
-6 Votes
+ -
How much does that software cost???
i8thecat4 19th Jan Below threshold | Show anyway
@John Baxter

It's Free??? And incredibly powerful, and will enpower teachers to teach, and make books more affordable for students and will help improve learning and education as a whole... Oh.. And it will probably put an end to powerpoint (thank god!!!)... And the catch is that there are some restrictions as a result of this software and ecosystem going out to the world for free... Do you people even bother to listen to yourselves???
@i8thecat4

"some restrictions"

lol
@i8thecat4 yes, US education will be saved by Apple e-books software... This is the only thing US eduction is missing. Are you serious?
3 Votes
+ -
Top Rated
Who cares?
WinTard 19th Jan Top Rated
@i8thecat4

It's Free??? And incredibly powerful, and will enpower teachers to teach, and make books more affordable for students and will help improve learning and education as a whole... Oh.. And it will probably put an end to powerpoint (thank god!!!)...


You've yet to see it, feel it, play with it, drive it, and you have the audacity to claim "Incredibly powerful"?

"Empower teachers to teach"? Did you get your education via iPads?

No need to read further, you should lay off the Kool-Aid for your own sanity...

Talk about dumbing down to the lowest common denominator...

If you want real software, look no further than Open-Source, not only free from costs, but also from strings-attached...

That's what Apple did, by ripping off FreeBSD for OS X and iOS.

Ripping off, by not putting back into the public domain.

Now attempting to rip off authors, to sell more girly pretty iStuff?

Have you not heard, iClay is fun too?

~~~~~~~~~~
The superior man understands what is right; the inferior man understands what will sell.
~ Confucius

Actually, I think most people accept the existence of qualia.
~ David Chalmers

All the carnal beauty of my wife is but skin deep.
~ Sir Thomas Overbury's, 1613
  • Flagged
3 Votes
+ -
It's not free
daboochmeister 19th Jan
@i8thecat4 - no it isn't free. Oh, you mean as in beer. Sorry, that's not the freedom that matters.
@WinTard

"If you want real software, look no further than Open-Source, not only free from costs, but also from strings-attached...

That's what Apple did, by ripping off FreeBSD for OS X and iOS.

Ripping off, by not putting back into the public domain."

BSD isn't public domain; its license merely requires that you acknowledge its origins, and obviously Apple managed that. Other than that, you can do pretty much anything you want with it.
  • Flagged
@i8thecat4 = obvious troll
  • Flagged
@i8thecat4 What are you on? A textbook, no matter the format, does little to 'empower teachers to teach". Excellent teachers can teach with or without textbooks, it's the "I'm going to read to you what's in the book" teachers that you seem to be referring to, and they're not very good. What would be empowering would be the ability to use this and have an 'open' finished product. This is a scheme to make money, not a plan to help teachers. (Not that I'm against schemes to make money, but let's not swallow the propaganda whole.)
@i8thecat4 Wow. Get of the drugs.
@i8thecat4 Do you every drink anything other than Apple koolaid?
  • Flagged
@i8thecat4 Can't agree with this one. Can only assume that they mean the output (saved file) is only for iBooks but the actual raw document can be exported and republished with another tool.
There wil be an update to the EULA shortly to clarify.
@i8thecat4
Apple loves the brainless.
  • Flagged
1 Vote
+ -
It's not free
William Farrel 20th Jan
@i8thecat4
maybe for the person who owns an iPad, you know, the free ones Apple gives out.

But do you here yourself talking?

You're agreeing with Apple that you can distribute your hard fought work for free, but to sell it, it can only be sold in a way that requires people to buy more stuff from Apple.

You sound like an Apple shareholder, IMHO.
1 Vote
+ -
Wintard - you are almost correct.
use_what_works_4_U 20th Jan
@WinTard
I agree with 95% of what you said to i8thecat, except for the "not putting back into the public domain" bit. If you want the Darwin Source code, go here: http://www.opensource.apple.com/
You won't get all of the OSX functionality, but you will get the updated Darwin code which is the project Apple derived from BSD. Much of it is under the BSD or GPL licenses, as these components (presumably) were when Apple acquired them.

Apple has always made their modified Open Source code available to the community. Learn more here: http://developer.apple.com/opensource/

As for the iBooks Author EULA, well that *is* unconscionable at it needs to be re-written.
@i8thecat4, well you certainly need a grammar teacher!
@i8thecat4 that makes as much sense as praising a society that is completely crime free because the citizens have agreed to give up their right to privacy and will be watched by the government 24/7 so that the government can guarantee your safety. Sounds stupid doesn't it?
@i8thecat4 This article would not have been written had Apple only called it Google iBooks Author - where evil is acceptable.
@i8thecat4 I wish ZDNet had a vote-down button.
@i8thecat4
It's Free???
Yes it is, just like smart phones are free, oh! unless you actually use them and read your 2 year contract...lol
@i8thecat4

it's not free; look beyond the fact that you don't actually fork hard earned cash in order to install it on your mac... once you submit work for publishing, you are effectively opening yourself to a lifetime of indentured servitude to apple.

I would love to hear you explain how it will make books more affordable for students and how it will eliminate powerpoint?
@i8thecat4

By your logic, if I give away a really nifty plain text editor (like Notepad, but better), it would be perfectly reasonable for me to put restrictions in the EULA on the use of any text file that had ever passed through it. Listen to yourself!
@i8thecat4 .... Wow who's been guzzling the apple Kook-Aid by the tanker full.

Get off the Apple favored Kook-Aid it's pathetic, you need to look in the mirror. read the article and try a logical thought.
@ WinTard

For your information, FreeBSD is still alive and kicking. Apple by the way contributed lots of extremely useful technology - CUPS, Bonjour..
@i8thecat4
Affordable? Only if you discount the cost of the iPad and he cost of newer ones from time to time. Last time I checked if you drop a book you can still read it.
@i8thecat4 , sure free sound good for something your want, but suppose your a writer. does giving away your work for free pay your rent, put food on the table, gas in the car, how about putting your children thru college. Free sound wonderful, in a star trek universe, but as long as it take money to survive in this world then people have a right and often a necessity to sell their work to anyone willing to buy it. and there are plenty of alternatives to apple soft ware that is both FREE and yet without "some restrictions", i have to wonder, what were you thinking??
@i8thecat4 you used and 8 times, i guess your teachers were not enpowered to teach.

why anybody uses apple products is beyond me anyway. i have been teaching for 10 years and am enpowered daily without that rotten fruit.
@i8thecat4 Yeah, it's free, just like the free vacations and "free, just pay extra shipping and handling" products. Only those blinded by Apple's born-again glow will believe this. It's free in the respect that it will be free for me, because I'll never use it, and somehow survive just fine (though I guess that's hard to imagine for an Apple junkie)
@i8thecat4 LOL wow this article must sting a little...what goes around comes around.
@Texrat i8thecat4=lost ball in tall weeds.
@i8thecat4
Hmm... I thought that hooked nosed, green skin colored meanie with the shiney apple in her claws was gone. Why are there always those who will try to defend the indefensible by only looking at what THEY care about?
@i8thecat4
@i8thecat4 This is not about empowering teachers, improving learning, or making books more affordable. This is about continuing Apple's efforts to control educational technology for its own enrichment. As a university professor, I acknowledge that the textbook-publishing industry has a license to steal. Transferring that license to Apple would make the situation even worse, especially at a time when the publishers are beginning to feel the heat. And here's a news flash. You seem not to read paper books, so you may not know this, but complex graphical information does not always display well on a relatively small iPad screen.

Sadly, there are many Apple fanboys (and girls) in higher education that will continue to suspend critical thinking and intellectual integrity and will just traipse blindly down Apple's garden path. Like many trends in higher education, the long-term damage to students will be a matter of small concern.
@i8thecat4

it will never put an end to powerpoint, nor should it, powerpoint is a good peace of software and offcourse it should be just selled as one with no strings attached, what you make with it and sell is of no concern of msft, if you dont like it or need it or cant afford it use openoffice and alike. unlike rotten apple system where everything is treated as their royalty. apple are becoming to greedy. also what has apple made available for free to you that is of any significant value?

before this becodes a rotten apple vs. msft flame war, yes i can name you at least 5 significant free things msft has given its users. and for you apple fangirls out there yes we know you all use skydrive.
-1 Votes
+ -
@i8thecat4
This shouldn't be news to anyone. Any person who has tried to connect an iPod to a computer that already has another iTunes library knows about Apple's Nazi-like policies, about how difficult they make it to your music to multipule portable devices. I think Apple is past it's prime anyway with Jobs dead, and a million competitors. Everyone is starting to realize what overpriced, underpowered, less all-around-compatible iCrap Apple products are.

i8thecat a mindless Apple lemming, like the majority of their consumers. *** Side note: ROFL @ "put an end to powerpoint"
@i8thecat4 ...and they get a percentage for every book from a broad number of publishers - and they corner the market in digital publishing, and one book can take up 3GB of memory (ex: on engadget video this was an elementary alegebra book, by the way). So for an elementary algebra book on a 16GB iPad it just took up almost 1/4 of the space of your hard drive.

Oh, but Apple has the answer. Oh DO THEY have the answer! Just buy the 64GB iPad. Hell, if you have an iPad already and can't afford a 32GB, just buy another 16GB iPad. It's all good! How noble of Apple!

Give me a freaking break. Maybe if they had expandable memory (they won't look at the iPhones and current iPads as proof) - I'd be less likely to blast this concept.
0 Votes
+ -
I don't think so
Schoolboy Bob 20th Jan
@i8thecat4

Not with the license agreement Ed talks about in this post. It seems unlikely anyway. They are just grasping at the market - trying to find a way to keep it from slipping completely away to Amazon, but that ship has already sailed.
@i8thecat4 So I assume you agree with SOPA? You are in essence endorsing Apple's so-called right to claim ownership of an authors work.
@i8thecat4 Yeah, right, and how many books are you going to write and give away for free? Free books are often worth just about what you paid for them.
@i8thecat4 Thank you for demonstrating how Apple fan boys actually think. You're kind of scaring me though.
@i8thecat4 Wow! You are the ultimate fanboy. Apple really can't do anything wrong in your eyes can they?
@i8thecat4

You're retarded. The restriction means it is anything but free. It means that it cost you everything, as in all rights to your own work. Retard, no wonder education is in the technological stone ages. Are you aware that there is nothing in this software that isn't already available somewhere else, for free and had no restriction of any kind? How about Google Docs retard. Can be accessed from any browser, include iPad's for retards.

To all truly handicapped people, I apologize for my use of the word retard, it was in no way intend to compare or associated good people like yourself with special kind of stupid like this.
@i8thecat4 Congratulations! I have NEVER seen so many responses to one comment. My hat is off to you!
@i8thecat4

BULLCRAP!

Well...it seems like the output is readable ONLY an iPad or maybe an iPhone...so that means that EVERY student & faculty would be REQUIRED to own one of these two in order to access any of it.

Now just try and tell me that Apple is doing this "for the better good" of the publishing world and the planet. Yea...right.

As always...Apple is doing this "for the better good" of Apple's bottom line...NOT to help students and/or faculty.

I'm an IT Admin at a major East Coast (US) university with over 35k students, faculty & staff. Does Apple seriously think that EVERYONE is going to go out and buy their devices so they can access their content?

NFW pal.
@i8thecat4 Oh My God...it is FREE so you're not supposed to make any profit from it?

"The Initial Writer hereby grants You a world-wide, royalty-free, non-exclusive license to use, reproduce, prepare Modifications of, compile, publicly perform, publicly display, demonstrate, market, disclose and distribute the Documentation in any form"

http://www.openoffice.org/licenses/PDL.html
@i8thecat4 Remind me again about which company is the "evil empire"?
@i8thecat4 - did you even read this? We're talking about it being inappropriate for any commercial application. Sure, it's fine for any book the author wants to give away for FREE. Most teachers however do not use free textbooks. They have to be paid for. Thus Apple gets to approve what gets taught.

I think your arguments are invalid.
@i8thecat4

"Do you people even bother to listen to yourselves???"

Apparently, you don't bother either. Or is it that you just don't understand the real issue? I definitely would not use Apple's software with that kind of EULA. Apple is a control freak best left alone by itself to play with itself, as it doesn't play well with others, and hasn't for a very long time.
@i8thecat4 - you're funny. Either that or you are so amazingly in love with anything Apple that you'd let them rape you daily, and you'd pay for it.

Anyone conducting business with Apple today must be out of their minds.
@i8thecat4 Forgot our meds did we.
2 Votes
+ -
The article doesn't have to say...
emaleroland@... 14th Mar
Apple takes 30%, can reject your work, so you can't sell it through them and you can't sell it via anywhere else, even direct.

I bought my kid some crayons. He drew a picture. We sold it on his kids web site. The crayola and paper companies didn't require he sell it through their kids marketing programs and didn't ask for royalties nor did they keep us from selling it anywhere else. Do you get it now?

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