Amazon.com policy prompts legal action

Amazon.com was drawn into a legal battle last week over a policy that would funnel more business to BookSurge, its Charleston-based self-publishing unit.

There are a host of companies where an aspiring author can produce a book without the backing of a big publishing house. However, in February Amazon announced that it would only sell such works produced by BookSurge, according to the lawsuit and a range of blogs about the industry. Amazon bought the so-called publishing-on-demand business in April 2005 for an undisclosed sum.

BookLocker.com Inc. , a Maine-based on-demand publisher, sued Amazon last week, claiming its new policy runs roughshod over antitrust laws. BookLocker, which has about 1,200 titles in its catalogue, said about half of its sales are through the Seattle retail giant. It is seeking class-action status with its legal salvo.

In the publishing world, Amazon's new policy is seen as a bid to grab market share from Lightning Source, a Tennessee-based company that competes with BookSurge. Lightning Source, for instance, handles all of BookLocker.com's printing. In its lawsuit, BookLocker.com said an Amazon representative promised to continue to sell BookLocker.com titles — if the company had them printed at BookSurge.

Amazon may have called off the dogs in recent weeks. We had no problem last week tapping into its Web site to buy 'The Reward of Faithfulness," one of BookLocker.com's lead titles. And one of the plaintiff's attorneys said Amazon has yet to blackball BookLocker.com titles.

At press time, Amazon had not responded to the complaint.

Stock in science

A North Charleston information-technology firm that develops electronic tracking devices for the shipping industry appears to be headed for new ownership — and a new name.

Navigational Sciences Inc. , formed eight years ago and commonly known as NavSci, has agreed to be sold to an Evergreen, Colo.-based company, according to a filing with the Securities and Exchange Commission.

American International Ventures Inc. has filed a binding letter of intent with the SEC to acquire NavSci in exchange for an unspecified amount of unregistered American International common stock.

As part of the deal, NavSci will become Wireless Physics Inc. , according to the April 28 letter.

The company was co-founded by Eric Dobson, a former scientist with the National Oceanic and Atmospheric Administration's coastal services center. In early 2005, Dobson said the firm planned to build an operations center in Asheville, N.C., where it expected to create about a dozen high-tech jobs.

Besides container-tracking systems the company develops for shipping companies, NavSci specializes in geographic information systems and satellite image-processing consulting.

NavSci officials couldn't be reached for comment late last week. It's unclear from the SEC filing if the company will move from its Tobias Gadson Boulevard location, the address listed on its Web site, as part of the deal.

In a separate and unrelated SEC filing, American International describes itself as a shell company; in other words, a corporation with no significant assets or operations. It formerly maintained a potential gold-mining property in Nye County, Nev.

Air waves

The advertising ills plaguing many a media outlet have come home to roost for the owner of WCBD-TV Channel 2 in Mount Pleasant and the Florence Morning News.

Richmond, Va.-based Media General Inc. said last week that it is cutting its work force by nearly 11 percent, or 750 jobs, by October and taking other steps to lower costs and generate about $40 million in annual savings.

"Media General continues to implement its announced performance improvement initiatives across all parts of the company," Marshall N. Morton, president and chief executive, said in a statement. "Our efforts to reduce operating costs have necessarily included personnel."

Locally, the human toll was minimal, according to a report in Broadcasting & Cable, which estimated the number of job cuts at the Coleman Boulevard operation at a "modest 1-2." Rick Lipps, vice president and general manager, was quoted by the trade publication as saying Channel 2 was "addressing the economy and the challenge it presents ... We're moving forward and doing our jobs."

Lipps could not be reached for additional comment Friday.

In a sign of the times, WCBD's parent noted that it is increasing positions in its interactive media division as it focuses more on squeezing revenue from the Internet.