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NetLibrary, Recorded Books Inch Closer to Trial

Jennifer Pinkowski -- Library Journal, 10/5/2007

Digital content provider NetLibrary and audiobook producer Recorded Books are no closer to settling their mutual lawsuits and have jointly agreed to a discovery plan that lays the groundwork for a trial early in 2008, according to papers filed with the Maryland District Court. Following a September 6 scheduling order by U.S. District Judge Deborah Chasanow in Baltimore, on September 18 counsel for NetLibrary and Recorded Books agreed on terms for the discovery plan, which is the formal legal process for gathering evidence for their claims. Each side has until January 22, 2008, to collect depositions, select expert witnesses, submit questions to the opposition, and file supportive documentation. The sides also agreed to propose a protective order governing the exchange of highly confidential information.

The dispute about the terms of the three-year-old licensing and distribution deal between Recorded Books and NetLibrary has been going on since late May, when Recorded Books sued NetLibrary for breach of contract and copyright infringement, among other charges. NetLibrary filed a countersuit a few weeks later claiming unfair competition and defamation. In June, Recorded Books also filed a preliminary injunction to force NetLibrary to stop distributing its content. Documents available from the court do not show that Judge Chasanow has ruled on the injunction. A spokesman for NetLibrary would not comment on the ongoing litigation.

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