* Hachette operating in 'good faith' but two sides at odds
* Affected Hachette titles can be bought from third-party
(Adds comments from Amazon, background on dispute)
By Deepa Seetharaman
SAN FRANCISCO, May 27 Amazon.com Inc is
preparing for a long battle with Hachette Book Group over a
contract dispute that led the U.S. online retailer to curtail
sales of some of the publisher's books.
In a statement on Tuesday, Amazon said Hachette, a unit of
French media company Lagardere SCA, has operated in
"good faith" but the two sides remain at odds. The comments, the
first by Amazon since the dispute became public in early May,
didn't disclose details of the disagreement between the pair.
"Though we remain hopeful and are working hard to come to a
resolution as soon as possible, we are not optimistic that this
will be resolved soon," Amazon said in a statement posted
Hachette didn't immediately respond to an email seeking
comment outside of regular business hours.
Amazon has been buying fewer print books from Hachette and
last week removed an option to pre-order Hachette titles that
will be published in the future. These include "The Silkworm",
an upcoming novel written by author of the Harry Potter series
J.K. Rowling, under the pen name Robert Galbraith.
In recent weeks, authors and other publishing insiders have
criticized Amazon for unfairly wielding its power as a major
retailer to gain an edge in contract talks.
"What I don't understand about this particular battle tactic
is how it is in the best interest of Amazon customers," author
James Patterson said in a May 13 post on his Facebook page.
In a letter to authors posted on May 23 on the website of
the Authors Guild, a group for book authors, Hachette chief
executive Michael Pietsch said the publisher was looking for a
solution "that preserves our ability to survive and thrive as a
strong author-centric publishing company."
In its statement on Tuesday, Amazon said customers looking
to buy one of the affected titles should "purchase a new or used
version from one of our third-party sellers or from one of our
The company said it would put up half the money for a fund
to help offset the loss in royalties to Hachette authors as a
result of the disagreement if Hachette pays for the other half.
Amazon has a record of being involved in combative
negotiations. In 2010, the company blocked consumers from buying
works published by Macmillan in a dispute over the price of
"When we negotiate with suppliers, we are doing so on behalf
of customers," Amazon said in its statement. "Negotiating for
acceptable terms is an essential business practice that is
critical to keeping service and value high for customers in the
medium and long term."
(Reporting by Deepa Seetharaman; Editing by Lisa Shumaker,
Christopher Cushing and Kenneth Maxwell)