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Apple Refuses To Settle In DOJ Case

Apple has filed a new memo in its defense against the Department of Justice, stating that it will not settle with three book publishers, as has been proposed. Instead, Apple is seeking a trial.

According to a court filing archived by PaidContent, Apple says it has “no objection to the Proposed Judgment’s bar on collusion.” However, the company will not settle with the court over its book contracts, because Apple claims “Once its existing contracts are terminated, Apple could not simply reinstate them after prevailing at trial. The Court’s decision would be irreversible.”

Here is an excerpt from the filing (PDF link)

The Proposed Judgment penalizes Apple in a manner that is inconsistent with the public interest and the law. Without Apple’s consent and without a trial, the Proposed Judgment automatically terminates Apple’s agreements (IV.A.) and effectively bars Apple (and other retailers) from selling eBooks under the agency model for two years by mandating shared responsibility for pricing between principal and agent (V.B., VI.B.). This result also is inconsistent with the fundamental tenet of agency relationships, not justified by proven facts, and has been overwhelmingly opposed by the public.

Bob Kohn, CEO of RoyaltyShare, commented on this move to PaidContent. He said: “Apple makes a good point that the proposed settlement terminates Apple’s agency contracts without a trial and that would be an unprecedented violation of Apple’s right to due process.”

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