Kara Swisher

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When Media Giants Attack! Cease-and-Desist Letter to News Reader Zite Claims All Kinds of Copyright Damage

A panoply of big media giants sent a cease-and-desist letter today to Zite, the Apple iPad news reader app.

The Washington Post, AP, Gannett, Getty Images, Time, Dow Jones and many other media organizations were part of the action, which you can read all about below.

Zite bills itself as a “personalized iPad magazine that gets smarter as you use it.”

Not smart enough, it seems, to avoid copyright complaints from the content creators the app sucks in.

“The Zite application is plainly unlawful,” said the letter to Zite CEO Ali Davar, noting all kinds of copyright violations.

In a phone interview with BoomTown this afternoon, Davar said Zite would comply with the letter by shifting the content from its “reading” mode to a Web one, which points to publisher sites.

“It’s a bummer that they did this, but we expected it,” he said.

In a comment he posted below, Davar also wrote:

“Zite’s goal is to work with publishers, not to be antagonistic. The few publishers that have contacted us regarding the reading mode view we have complied with their requests and simply switched over to web view. We’re talking to publishers right now to find a win-win for them monetarily and to at the same time preserve the great user experience.”

For now, it’s lose-lose, and the letter is a dramatic shot across the bow of all the many news readers now hitting the market in the wake of the popularity of the Apple iPad tablet.

The social media-focused Flipboard and the news-oriented Pulse are two others, both of which have claimed they are working with publishers.

But Pulse wrangled with the New York Times over misuse of its RSS feeds and copyright issues, which has since been settled.

Zite showed up earlier this month, a product of a machine-learning technology start-up called Worio, which is based in Vancouver, Canada.

The aggregator of personalized content, which has $4 million in angel funding, gets its cues from a user’s interests.

Zite’s technology originated at research at the University of British Columbia several years ago.

In an interview with NetworkEffect’s Liz Gannes a few weeks ago, Davar seemed sanguine about publishers.

Wrote Gannes:

The free Zite app imports a user’s Twitter tweets, follows and Google Reader subscriptions, offers lists of pre-made categories, and then solicits feedback and refines over time a list of topics and sources the user is interested in. It features articles based on their popularity, number of shares from a user’s network and topic relevance. (Davar said he thinks a person’s Facebook network data is too heterogeneous to reliably recommend articles, so it’s not included as an option.)

Flipboard itself is likely to add more personalization features; the company bought real-time social discovery technology from Ellerdale and has yet to implement much of it.

Vancouver-based Zite is well-funded, with $4 million from angels and Canadian grants, but it doesn’t have business relationships with publishers. The app lays out pictures and articles, stripping out everything else, including ads. Davar said he doubted this would be a problem. “It would be shortsighted for publishers to think of Zite as us versus them,” he said.

Short-sighted maybe, but legally lethal definitely, as you can see by this cease-and-desist letter, as well as a video from Zite on how its app works:


Letter to Zite _03 30 11_

Zite: Personalized Magazine for iPad from zite.com on Vimeo.

(Full disclosure: New Corp. owns Dow Jones, which owns this site.)


comments so far. Add yours.

  • Anonymous

    Zite’s goal is to work with publishers, not to be antagonistic. The few publishers that have contacted us regarding the reading mode view we have complied with their requests and simply switched over to web view. We’re talking to publishers right now to find a win-win for them monetarily and to at the same time preserve the great user experience.

    Ali Davar
    Zite

  • Anonymous

    I read this article on Zite, which has become my favorite app for my iPad 2. I hope that it can hang on against the publishers and work something out. It’s really a fantastic experience.

  • Anonymous

    Great response, I’m loving your app. It’s one of the few apps that is truly better than the web itself. Keep up the great work!

  • http://Jnote.org James Howard Young

    Long live Zite. I love it

  • http://www.facebook.com/StuBee Stuart B

    I read this news and my heart sank. Being in legal I did anticipate this, but nonetheless it is still very sad news indeed.

    Will the publishers not appreciate that Zite is introducing hundreds of thousands of users new sites and experiences, and directing more traffic to more websites. In the tech world for example, I would visit engadget or Gizmodo daily, ignore the adverts daily, and move on with my life. Now I still visit those sites daily, but I also read articles from a wider spectrum of sites, which surely only enhances their profitability. Once we click through to read the rest of an article, we are directed to their website and we view the exact same page as if we had stumbled across the article on the web. Adverts are still clickable. Numbers still counted.

    If I had one criticism of Zite, it is that is clumsy if you must go offline- out of wifi range or underground. It would of course be more useful for those of us using our iPads on the go, if it did not periodically refresh content without warning, losing readable content, but I presume that this limitation is to do with respecting the rights of respective content owners.

    These publishers need to embrace the digital media revolution. Sadly, I fear that this amazing technology will be lost to media giants, bought by a conglomerate which reduces the number of sources significantly, throws its weight around, and prioritises results which are less significant to us and more financially advantageous to them.

    I hope it does not come to this. Mr Davar, whilst I am sure you will have to concede many things, I hope you can keep the core functionality as is, because the software is everything an “App 2.0″ needs to be.

  • http://www.thepomoblog.com Terry Heaton

    This is a sad admission by these companies that they’ve not studied the concept of unbundled content nor have they studied ways to make money with it. Ads “as items” in an RSS feed create pages of content within the company’s Web ecosystem and carry great value in terms of SEO as well as being seen in the wild.

  • http://www.paolospen.blogspot.com/ Paolo Maligaya

    I hate the web mode! Keep the reading mode, ditch the complainers. They’re not the only news sources in the world. Actually, Zite made me realize that there are many other sites out there that carry great articles, offering different perspectives. Don’t give in, Zite!

  • Anonymous

    Actually, Zite, InstaPaper and Readability direct traffic AWAY from content originators’ websites. They basically steal the content while claiming to be altruistic. That is not going to fly with organizations as well-heeled as Gannett and News Corp.

  • Anonymous

    Many of the most powerful companies producing content have let Zite know it will not be using their content without paying them. There will not be much left after TIME and its publications, the WSJ, the Associated Press, etc., pull their content or obtain a court order against Zite.

    This keeps occurring over and over again, regarding both television and print/Internet media. Many a startup is under the impression that it can violate copyright without legal repercussions. Even Google tried this with Google TV. At this point, content owners need to take a stand.

  • Anonymous

    I find it hard to believe that you did not know that you were creating a scheme to misappropriate copyrighted content when you set Zite up. The fact that Readability and InstaPaper are doing the same thing does not make it legal.

  • http://www.searchbistro.com Henk van Ess

    Zite is by design a terrific source for rich information about specific topics. The complaining media can never have this kind of specialized information because .. they are mass media.

    The last weeks I found terrific new sources with a great tone of voice and intelligent research on niche topics.

    This Cease-and-Desist letter could be the best things that has happened to @ziteapp

  • http://www.123contracting.co.uk freelance

    What a shame – poor little David, gotta hate the big guns sometimes.

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