New Jersey would limit library e-book and audiobook contract terms

Library contracts could not set prices above public prices or cap license purchases once the same item is publicly available. Covered libraries would include local public libraries, the State Library, school libraries, and libraries at public colleges and universities. Per-loan fees would be allowed only when substantially cheaper than buying the item outright. If enacted, these rules would apply immediately to contracts entered into on or after the law takes effect.

Contracts could not restrict routine lending, library-set loan periods, necessary lending security tools, private preservation copies, or loans between libraries. These protections would cover public libraries’ e-books and digital audiobooks. Loan-count or license-length limits would require a permanent-use option without those limits, at a price both sides agree is reasonable and fair. Contracts could not limit online readings or artwork displays in ways that reduce their educational value compared with use at a library. If enacted, these protections would cover contracts entered into on or after the law takes effect.

Contracts could not block specified sharing of terms or require, pressure, or enable libraries to break existing rules protecting users’ records. Protected sharing would cover other public libraries, state lawmakers, and the attorney general. Libraries, borrowers, and the attorney general could bring a case under state consumer fraud law. Licensing contracts with banned terms and agreements to give up these protections could not be enforced. If enacted, these protections would cover contracts entered into on or after the law takes effect.