Books On Demand

(FSB Magazine) -- Buying a book could become as easy as buying a pack of gum. After several years in development, the Espresso - a $50,000 vending machine with a conceivably infinite library - is nearly consumer-ready and will debut in ten to 25 libraries and bookstores in 2007. The New York Public Library is scheduled to receive its machine in February.

The company behind the Espresso is called On Demand Books, founded by legendary book editor Jason Epstein, 78, and Dane Neller, 56, but the technology was developed six years ago by Jeff Marsh, who is a technology advisor for New York City-based ODB (ondemandbooks.com).

The machine can print, align, mill, glue and bind two books simultaneously in less than seven minutes, including full-color laminated covers. It prints in any language and will even accommodate right-to-left texts by putting the spine on the right. The upper page limit is 550 pages, though by tweaking the page thickness and type size, you could get a copy of War and Peace (albeit tough to read) if you wanted.

Neller says that future versions of the machine will accommodate longer works with fewer hassles. Prices for the finished product will vary depending on locations, but the production cost is about a penny per page.

Some 2.5 million books are now available - about one million in English and no longer under copyright protection. On Demand accesses the volumes through Google and the Open Content Alliance, among other sources. Neller predicts that within about five years On Demand Books will be able to reproduce every volume ever printed.

Epstein says that the larger obstacles are consumer preference - the machine can't make you a latte - and convincing skeptics in the industry. But some early adopters are already sold on the idea.

Niko Pfund, a publisher at Oxford University Press, says the evolution away from traditional bookstores is only natural. "For hundreds of years the industry was unchanged," Pfund says. "Then audio came out. Now it's time for digital."

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Apple facing iTunes, iPod lawsuit

A lawsuit claims that Apple Computer Inc. has created an illegal monopoly by linking iTunes music and video sales to its iPod players.

The company says the suit, filed in July, centres on Apple's use of a copy-protection system that prevents iTunes music and video from playing on rival devices. As well, songs bought elsewhere aren't easy to play on iPods.

The plaintiff, which the company did not divulge, is seeking unspecified damages. On Dec. 20, the court denied Apple's motion to dismiss the complaint.

It marks the latest in a series of problems facing Apple.

The online iTunes Music Store had a breakdown on Dec. 26 after the site experienced soaring downloads after Christmas. Consumers were faced with error messages and long delays.

Apple officials still can't explain why some people experienced 20-minute delays to download a song. The situation was corrected by Dec. 29

Apple commands about 75 per cent of the market for downloaded music, but analysts predict rival services will start to eat up Apple's portion of the market in 2007.

Separately, Apple is facing a securities lawsuit accusing the company and some of its current and former employees of improperly backdating stock-option grants, failing to properly account for them and making false financial statements.

The manipulation itself isn't illegal, but securities laws require companies to disclose the practice in its accounting and settle any charges that may result.

The company initiated an inquiry, and its audit and finance committee cleared CEO Steve Jobs of misconduct and said he did not benefit from the grants.

Apple says its internal review has been handed over to the U.S. Securities and Exchange Commission and the U.S. Attorney's Office for the Northern District of California, and that it has responded to their "informal requests" for documents and additional information.