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Amazon, NYT in legal spat
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June 4, 1999: 7:51 p.m. ET
Bookseller wants to use Times' best-seller list, despite paper's opposition
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NEW YORK (CNNfn) - Amazon.com and the New York Times traded blows Friday in a spat over the newspaper's bestseller list.
Late Thursday night Amazon.com asked the U.S. District Court in Seattle to rule that the online bookseller could continue a promotion based on the Times' best-seller list.
The Times lashed back Friday. "What they've done is reprint our content without permission," a spokesperson said. The paper demanded Amazon.com license the rights to reprint the New York Times Best Sellers List or stop using the list.
The spat started May 17, when Amazon.com announced it would start selling New York Times bestsellers at a 50 percent discount.
On May 28, the New York Times Co. (NYT) replied with a letter telling Amazon.com to "cease and desist" using the well-known list, alleging the Seattle electronic retailer is infringing on its copyright.
Amazon.com then tried to appease the Times. "We tried to have some productive dialog with them on several occasions," said Bill Curry, Amazon.com's public relations director.
Amazon.com also made some changes to the part of its site where it lists the bestsellers, arranging the books alphabetically instead of by ranking and slapping on a disclaimer that the Times wasn't connected to that part of the site.
But fearing legal action from the Gray Lady, Amazon.com filed for a "declaratory judgment," asking the court to rule it could continue using the roster of bestsellers.
Amazon.com said it's protected because the content of the list is fact. It's a fact that facts can't be copyrighted. "It's very common in the bookselling industry to reference the Times list," Curry said.
While the Times doesn't have a problem with stores identifying books as New York Times best sellers, it insisted Friday that Amazon.com get permission to run the list itself. It also said Amazon.com scoops the paper on a regular basis with the list.
While that might seem a strange allegation for a news organization to make, the Times regularly provides the list in advance to subscribers before it publishes it on its Web site Friday and in the paper Sunday.
Lisa Carparelli, a Times spokesperson, said how much licensing arrangements to use the list cost or are set up is "proprietary."
The Times has a licensing agreement with Amazon.com competitor Barnesand noble.com (BNBN).
Barnesandnoble.com matched Amazon.com's "50 percent off" on New York Times bestsellers shortly after Amazon.com started it.
One bookseller not connected to either Amazon.com or Barnesandnoble.com said the debate seemed strange.
"Nobody has ever said anything before," she said, adding that bookstores regularly post copies of the list. "This doesn't make any difference to anybody except Barnes & Noble."
But the Times said Amazon.com is republishing the list by reproducing it on the Web. Carparelli wasn't aware whether other bookstores that physically cut out the list and post it have licensing agreements or not.
Amazon.com appeared to relish this copyright tiff with the influential newspaper, using the phrase "50 percent off" seven times in its press release.
When asked whether the company could benefit from the publicity of its offer, Curry said the company would rather not have taken action. "We would much rather be selling books at 50 percent off than hanging around the courthouse," he said.
The legal sparring comes nearly a week after a critical article in Barron's called the book seller's stock vastly overvalued.
This isn't the first time the bestseller list has been the subject of controversy, either. Some booksellers question the reliability of how it is compiled.
Amazon.com shares fell 7-1/6 Thursday but rebounded almost half of that Friday, closing the week at 108-7/16. New York Times Co. stock closed up 3 percent to 35, having dipped very slightly Thursday.
Barnesandnoble.com stock lost 3/8 to 16-1/2 Friday.
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