PW reported yesterday that
AuthorHouse lost its libel case based on a book it published last year. It's a pretty interesting case since POD publishers (like AuthorHouse, xLibris, iUniverse, etc.) tout that they put the author in control. What they really mean is that they give the author a price list of services and authors can choose what they think they need or don't need. Authors end up with the just what they order -- their self-published book which hasn't been edited and in many cases copyedited, designed, or proofread. Either way, the book isn't read in-house by an editor. Their contracts says the publisher (AuthorHouse) assumes no legal responsibility or liability for anything the author publishers.
In what seemed only inevitable, a book came in, libeled someone (in this case, the author's ex-wife), and AuthorHouse published it -- that is, they printed it at Lightening Source and LSI pushed it to their normal distribution channels through Ingram. AuthorHouse tried to distance itself from the claim by saying that the author was in control. However, the jury essentially ruled their contract invalid saying "if it walks like a duck and talks like a duck, it's a duck." If you call yourself a publisher, and provide services a publisher provides, then you're a publisher.
It's been interested to us, since our publishers liability (and Errors and Omissions) insurance is one of our single biggest yearly expenses. But we also acquire, edit, and advise authors on all books we publish. Most editors know (or should know) red flags for libel, fair use, and permissions issues. Plagiarism is to some extent harder to spot.
But what happens when you call yourself a publisher but no one in house reads or vets the books you publish? Can you still call yourself a publisher without being held liable for a problem like this? Or are you responsible for everything that comes our under your name? (Let's hope so.) If an author tells you the book has been rejected by another house (any kind of house) for libel reasons, wouldn't you ask the author if they've revised the material and then check it yourself? (I guess not if you think your contract absolves you of responsibility.) It's all very interesting -- and unless the punitive damages are extremely high we probably won't hear of it again. I don't know what kind of publishing insurance they must have (without being selective about what they publish or reading it in-house) but presumably this might be covered.
Interesting either way. We'll see how this unfolds.