Texas Attorney General Orders "Big Deal" Bundle Contracts Released
Researchers aim to help libraries negotiate better on complex deals
Josh Hadro -- Library Journal, 08/31/2009
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- "Proprietary interests" argument doesn't apply
- Nearly 150 contracts acquired for study
- Analysis expected by fall
Researchers aiming to help librarians better negotiate with large publishers on journal contracts have made significant progress thanks to a successful open records request in Texas.
On August 5, the Texas Attorney General (AG) ordered that contracts between both Springer and Elsevier and the University of Texas (UT) system be released to economists Paul Courant (also University of Michigan Library dean), Ted Bergstrom, and Preston McAfee. The ruling goes against claims made by the publishers to the AG's office, arguing that the contracts constituted trade secrets that would adversely affect the their "proprietary interests."
According to the AG, Springer and Elsevier did not present sufficient evidence that the "release of the information at issue would cause them substantial competitive harm." In fact, the official statement (see below) went further, saying "[t]his office considers the prices charged in government contract awards to be a matter of strong public interest. Moreover the terms of a contract with a government body are generally not excepted from public disclosure."
The researchers also submitted requests for UT contracts with eight other publishers (Emerald, Wiley, Sage, American Chemical Society, Taylor & Francis, Oxford University Press, Cambridge University Press), but those generated no comment from the publishers to the Attorney General's office.
Washington motion denied
The Texas records request is the second to generate an official legal ruling or statement, following a June case before a judge in Washington state concerning a motion from Elsevier to block the release of records from Washington State University. Claims that the contracts contained “proprietary pricing methods and formulae" were similarly rejected, and the documents released.
On the Big Deal Contract Project site maintained by Bergstrom, the researchers explain their reasons for undertaking the study. Besides helping libraries, they note:
Our research has both a scientific purpose and a public service motive. As economists interested in industrial organization and pricing policy and in the economics of information technology, we find that the academic journal industry presents a fascinating case study of such practices as price discrimination, bundled sales, and long-term contracting in an imperfectly competitive industry.
Contracts acquired, but not made public
According to the site, Courant, Bergstrom, and McAfee have acquired nearly 150 contracts covering agreements with more than 500 institutions among the universities and consortia. A few universities submitted redacted versions of contracts from Elsevier and Springer, though Courant told LJ that the researchers would seek unredacted versions.
When asked if the contracts would be made available online, Courant said they had not yet considered doing so. He also indicated that they expect to have at least some analysis of the collected contracts ready sometime this fall.
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