What Happens to Ebooks When a Platform Shuts Down?

Purchasing eBooks Means Buying "Usage Rights," Not "Ownership"

The first thing you should understand is how purchasing eBooks works.

In the case of physical books, when you buy one, you obtain ownership rights over the physical object. On the other hand, when you purchase an eBook, what you are actually buying is "the right to use the eBook through the platform where you purchased it," not ownership of the book data itself.

You can think of it simply as "the right to view the book’s data on that platform." That is why, if you buy an eBook on Platform A, you cannot read it on another Platform B.

What Happens If the Platform Closes Due to Bankruptcy or Service Termination?

So, what happens if the eBook platform you are currently using goes bankrupt or ceases operation?

This depends on the service, but usually one of the following four responses will be taken:

1. Refund using points equivalent to your purchase
2. Full refund
3. Make the book files available for download
4. Transfer access to another service

In any case, you will either be able to continue viewing your purchased eBooks or receive a refund of equal value, so you can use the service with a certain degree of peace of mind.

Even If No Measures Are Taken, Local Data Can Still Be Used

Depending on the service, eBook files downloaded to a smartphone, tablet app, or eBook reader can generally still be used even if the platform goes bankrupt or ends its service.

In some cases, however, the app may require a login, and if the login servers are shut down when the service ends, you may no longer be able to use it. Still, in such cases, refunds or other measures are usually offered.

One important point to remember is that once the eBook platform ends, the app itself will also no longer be available, so you may not be able to install it on newly purchased smartphones or tablets.

Choose a Service That Is Unlikely to Shut Down

As we have seen, service termination is a risk when buying eBooks. It may not matter much if you only own a few, but just imagining hundreds or thousands of purchased usage rights disappearing at once sends chills down your spine.

To avoid this, it’s crucial to carefully choose the service when buying eBooks.
The best criteria for choosing are:

1. Vendors whose main business is book sales
2. Major EC (e-commerce) platforms

On the other hand, services you should avoid are:

1. Startup companies specializing only in eBooks
2. Companies that already have a main service and are only entering the eBook market as a side venture

For these, running an eBook business itself is a challenge, so there is a higher risk that they may withdraw from the market quickly.

Amazon Are the Safest Choices

With this in mind, Amazon of which offer their own eBook readers—are the safest choices.

Both operate massive e-commerce businesses and have strong corporate foundations. More importantly, because they sell their own eReaders, they treat eBooks as a major source of revenue, meaning they are likely to maintain operations for the long term.