Notice to publishers: curse your sudden but inevitable betrayal points out that Penguin has yanked its participation from Overdrive library services. :(

Apparently, Penguin is unhappy that Overdrive was turning the library requests over to Amazon, which is outside of the scope of the contracts. Why Penguin terminated its contract with OverDrive at TeleRead goes into more details.

A proposed solution: Libraries should band together, make a nonprofit, and take over OverDrive:
Why not sell OverDrive to our public libraries, then, if they can find the financing? Or maybe to a nonprofit run on their behalf, with librarians and educators setting the direction and with capable, truly involved business people advising them? Such a transaction would allow OverDrive founder and CEO Steve Potash to leave a memorable legacy to the American people while still reaping financial rewards. In one leap we could be truly on our way toward a well-stocked national digital library system for all Americans.
As if it wasn't already hard to find good ebooks on Overdrive...

AP reporting:

Penguin halts e-books sales to libraries
Associated Press – 16 hrs ago


NEW YORK (AP) — Penguin Group (USA), which publishes such best-sellers as Kathryn Stockett's "The Help" and "Elizabeth Gilbert's "Eat, Pray, Love," has stopped selling e-books to libraries.

Simon & Schuster, Macmillan and the Hachette Book Group are among the major publishers that already limit e-book availability to libraries. While more and more smaller publishers are providing e-books to libraries, larger publishers have been concerned that the ease of downloading books from libraries could hurt sales.

Penguin announced Thursday it would stop selling e-books to libraries through OverDrive Inc., a Cleveland-based digital distributor and major supplier for the library market. The publisher added that it was talking with a "number of partners" about possible future arrangements. OverDrive CEO Steve Potash said he was still "actively working" with Penguin about how to address their concerns.
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