SB757 would regulate licensing agreements for digital literary materials, including eBooks and digital audiobooks, between publishers and Hawaii public libraries. The bill defines “reasonable terms” for those licenses and prohibits contract provisions that would limit a library’s ability to lend digital materials, set loan periods, use technological protection measures, make preservation copies, use interlibrary loan, or disclose license terms to other libraries. It also bars publishers from charging libraries more than consumer prices for access, imposing per-circulation fees above the cost of purchase, or restricting the number of loans or licenses in ways the bill deems unreasonable.
The measure further requires publishers offering digital literary materials to the public in Hawaii to extend offers to libraries on reasonable terms and preserves libraries’ authority to determine loan periods and borrowing limits, subject to fair use and technological safeguards. It creates enforcement mechanisms by classifying prohibited offers or contracts as unfair or deceptive acts and unconscionable contracts under Hawaii law, making them void and unenforceable and allowing actions by libraries, library officers, or borrowers. The bill is structured to apply only to contracts entered into or renewed after its effective date and includes severability and non-impairment provisions.
Impact
SB757 would add a new part to Chapter 312, Hawaii Revised Statutes, governing digital literary materials and publisher-library licensing. It would create statutory standards for public libraries under the state library system and the Department of Education, while also tying violations to Hawaii’s unfair and deceptive practices and unconscionability laws in Chapters 480 and 490. In practical terms, the bill would give libraries a legal basis to challenge restrictive e-book and digital audiobook license terms and to seek injunctive or other remedies against prohibited agreements.
Sentiment
The available legislative history suggests generally favorable sentiment toward the bill, at least in committee. The Senate Education Committee passed SB757 with amendments by a 4-0 vote, indicating unanimous support among members voting. No committee transcript is available here, so the broader discussion cannot be assessed in detail, but the bill’s findings and report title show a clear policy preference for improving library access to digital materials and limiting publisher-imposed restrictions.
Contention
The main point of contention is the bill’s attempt to regulate private licensing terms in a way that could be challenged as conflicting with federal copyright law or existing contract rights. The bill itself acknowledges prior Maryland litigation over similar efforts and includes language aimed at avoiding federal preemption and unconstitutional impairment of existing contracts. Publishers are the likely opponents because the bill would limit pricing, loan caps, duration limits, and other license restrictions, while libraries, library officers, borrowers, and library advocates are the primary supporters because the measure is designed to improve access, preservation, and interlibrary lending.