PayPal backs down

March 13, 2012

I received this email last night and I was very pleased to see it. I have expressed previously, my grave concerns about banks and credit card companies holding themselves out as censors. I have also thought that this attack seemed to be on e-books only. Other works out in the printed domain do not attract the same attention.

A win for indie publishers and for us all!

Smashwords author/publisher update:  PayPal Reverses Proposed Censorship

Great news.  Yesterday afternoon I met with PayPal at their office in San Jose, where they informed me of their decision to modify their policies to allow legal fiction.

Effective last night, we rolled back the Smashwords Terms of Service to its pre-February 24 state.

It's been a tumultuous, nerve-wracking few weeks as we worked to protect the right of writers to write and publish legal fiction. 

I would like to express my sincere thanks to Smashwords authors, publishers and customers.  You stood up and made your voice known.  Thank you to every Smashwords author and publisher who wrote me to express opinions, even if we disagreed, and even if you were angry with me. You inspired me to carry your cause forward.  

Smashwords authors, publishers and customers mobilized. You made telephone calls, wrote emails and letters, started and signed petitions, blogged, tweeted, Facebooked and drove the conversation. You made the difference.  Without you, no one would have paid attention. I would also like to thank the Electronic Frontier Foundation (EFF), The American Booksellers Foundation for Free Expression (ABFFE) and the National Coalition Against Censorship (NCAC). These three advocacy groups were the first to stand up for our authors, publishers and customers. Their contribution cannot be overstated.  We collaborated with them to build a coalition of like-minded organizations to support our mutual cause. Special kudos to Rainey Reitman of EFF for her energy, enthusiasm and leadership.

I would also like to thank all the bloggers and journalists out there who helped carry our story forward by lending their platforms to get the story out.  Special thanks to TechCrunch, Slashdot, TechDirt, The Independent (UK), Reuters, Publishers Weekly, Dow Jones, The Digital Reader, CNET, Forbes, GalleyCat & EbookNewser and dozens of others too numerous to mention. 

I would like to thank our friends at PayPal.  They worked with us in good faith as they promised, engaged us in dialogue, made the effort to understand Smashwords and our mission, went to bat for our authors with the credit card companies and banks, and showed the courage to revise their policies. 

This is a big, bold move by PayPal.  It represents a watershed decision that protects the rights of writers to write, publish and distribute legal fiction.  It also protects the rights of readers to purchase and enjoy all fiction in the privacy of their own imagination. It clarifies and rationalizes the role of financial services providers and pulls them out of the business of censoring legal fiction. 

Following implementation of their new policies, PayPal will have the most liberal, pro-First-Amendment policies of the major payment processors.  Will Google Checkout and Checkout by Amazon be next now that the credit card companies have clarified their positions, and have essentially given payment providers the permission to adopt more enlightened policies?   Finally, thanks to Selena Kitt of Excessica and Remittance Girl for helping me to understand and respect all fiction more than I ever have before.

This is a bright day for indie publishing.  In the old world, traditional publishers were the arbiters of literary merit.  Today, thanks to the rise of indie ebooks, the world is moving toward a broader, more inclusive definition of literary merit. Smashwords gives writers the power and freedom to publish.  Merit is decided by your readers.  Just as it should be.

Thanks,

Mark Coker

Founder

Smashwords