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SMART PAPER

We end Accessible Book famine, provide eBooks to libraries

Finland
Market: Information and media
Stage of the project: Prototype or product is ready

Date of last change: 08.08.2021
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Idea

Publishers refuse to sell eBooks to libraries, digital exclusion grows.

We reverse-engineered eBook & paper book into the DUAL ‘2in1’ product,
re-Born-Digital IndiviDUALbook, by tactile-QR-coding of book cover, for secure inclusion of Visually Impaired & digitally excluded People (VIP).

Hence eBooks & pBooks become Common Good, available in accessible format, adjusted to unique user,
authenticated by Disposable Yet Official Identity's anonymous token at affordable DUAL Book,
self-copied by smartphone & home delivered for private use, i.e. copyright law-conform.

Current Status

MVP of our end solution (product/service, IndiviDUALbook/-s) is ready.
Our end solution (OpenEurope books, ŒBœks) is a combination of several components, produced by our sub-suppliers, at our (SmartPaper.fi/oe) design, by:
- Hunkeler AG, Switzerland
- UpCode /UPC Oy, Finland
- Michael Schiffer Dialog GmbH, Germany.

Every component of our combined solution was separately sold B2B to multiple clients (banks, telecoms, Pension funds, postal distributors etc.),
at several markets,
- by us & our local agents (3 million € turnover to Russia)
- or by Hunkeler AG agents / by independent service providers (worldwide).

We need pre-seed investment,
to develop the API & test the combined service (IndiviDUALbooks), to start sales of the combined solution;
6 months to break-even.

Market

Our B2B2C customers are 50+% of Public Library (PL) patrons, under-served by PL, due to lack of access to rare/Long Tail books (9% of lost loans in Finland), eBooks (only 10% of books are digitized; 80% of eBook sales to PL, controlled by Amazon, has been stopped), books in Accessible Formats (non-accessible for 19% of population), see library issues statistics data at Slide 3 bit.ly/oeBook4OmaStadiSlideDeck.

In different countries it varies from 20% to 60% (in Finland) of population, who can't access Knowledge via shrinking access to books, digitized by publishers so that PL couldn't provide eBooks to people, e.g. by Amazon (80% of eBooks), stopped eBook sales to PL, incl. audio books.

Also eBook legacy licensing model (instead of ownership, as for paper books) threats to 100% loss of eBooks, due to absent sustainability of book preservation:
https://www.thenation.com/article/culture/libraries-digital-publishing-ebooks/

MARKET. Books now, SOM/SAM/TAM = 0.35 / 11 / 120 B $ vs. Education market’s TAM = 2000 B $ (incl. exponentially growing books for personalized education).
USA = 0.053 / 1.6 / 18 B $
EU = 0.08 / 2.34 / 26 B $.

It’s Blue Ocean / niche market: no one competes closely cost-effectively against our offer, for library books: we'd save 90% book Life Cycle Costs,
CO² & librarians manual jobs: 13$* vs. (138$ LCC + 60$ eBook license).


Problem or Opportunity

PROBLEM / OPPORTUNITY: eBookSOS problem, no access to 50% of books.

This problem is called #eBookSOS in UK / USA (re. student textbook exorbitant costs), see articles in The Guardian, BBC, The Times etc.: https://bit.ly/EbookSOS
= 120 Billion $ opportunity to replace costly books by DUAL books.

Another big issue of eBook is non-sustainable preservation of book heritage:
https://www.linkedin.com/feed/update/urn:li:activity:6828627470200135682/

Publishers refuse to sell eBooks to libraries, offer exorbitant prices for eBook license to public libraries (PL), claiming "book sale cannibalization" by PL loans of books.
This is not true, but publishers ignore library statistics data (like Panorama Project's https://www.panoramaproject.org/)

The real reason: in digital age the PL mission (value: Common Good Learning) can substitute publishers 'mission' (value: self-profits)
- by offering end-user-centric book values
- thanks to latest smartphone technologies, allowing users to copy books.

But eBook copying is yet not widespread, limited by DRM, copyright law ("piracy" claimed) & lacking know-how and business models of cost-effective access to book contents.
Paper book self-copying also lacks cost-effective know-how & biz. models.

We, SmartPaper.fi/oe, reverse-engineer eBook & paper book into the DUAL ‘2in1’ product,
re-Born Digital DUALbœk,
by tactile-QR-coding of book cover,
to make books VIP-accessible, FREE, home-delivered to under-served PL patrons.

The duality of content carrier (with combined tactility/naked eye readability of paper book & eBook data, access via SMART QR-code*),
- the book cover & envelope** combined into re-usable book dust cover, which we designed,
- provides law-conform strong authentication of unique user right to access & P2P share Book content, needed for process control by user of book data.

The salient components of our solution, which we combine into our product:
- ** one-sheet paper mailer, introduced worldwide since 2001 in hundreds billions pcs, as the cost-effective alternative to envelopes, via Hunkeler AG
- * with pre-printed/Augmented Reality UpCode (by globally esteemed UPC Oy, our long term sub-supplier; it is like QR-code, but fraud-protected)
- with AI-powered anonymous authentication of Right2Service: Right to copy in-copyright content for Private Use/to outsource copying books to EU coop.

This is the opportunity for PL to purchase from our production partners the DUAL book (including our mailer/envelope for home delivery of eBook's DUAL copy, a must for conformity of a business model to copyright law),
- to substitute rare books & eBooks, currently not PL-available / too costly,
- thus overcoming the digital exclusion of 50+% people*** from access to Knowledge & Learning (e.g. Amazon stopped 80% of eBook sales);
- e.g. for students, harmed by predatory high & growing costs of textbooks (annually 1000$ in the US / 500 € in Finland).

*** see PL statistic data at slide 3 https://bit.ly/oeBook4OmaStadiSlideDeck

Solution (product or service)

We sell DUAL book covers (mailer forms), 1$/pc., B2G2C for public library patrons, so that Life Cycle Cost* of a paper
DUAL book (it includes e-book) for a library
- drops to 13$ = 1/10 of legacy biz. model via publisher:

Competitors

It’s Blue Ocean / niche market: no one competes closely cost-effectively for library (paper) books, for which we'd save PL book Life Cycle Costs,
CO2 & library manual jobs: 13$ vs. legacy (138$ LCC + 60$ eBook license).

Competitors: for paper books
- producers of BookOfOne, an (educational) book with personalized content, like a textbook for individual studies.
Average price of (CENTRALIZED) BookOfOne = 30€ + logistics costs = triple vs our book, DECENTRALIZED, last mile produced & home delivered, 12 €.

Competitors: in-copyright eBook publishers & middlemen/book shops
- publishers against PL/Common Good, at digital era's abundance market
- like Amazon, who completely stopped selling eBooks to PL, or sky-rockets eBook license costs & conditions.

Resolution measures: in US/UK > long protests in media, like #eBookSOS;
US PL's address Senators, involved in courts, like publishers against Internet Archive's Controlled Digital Lending (CDL) of e-copy of a paper book, owned by IA.

We offer The 'extended CDL', without litigation risks:

imho, no business model exists (except of ours, confirmed by the Finnish Copyright Council*), to offer eBook to a PL, when a publisher doesn't sell eBook to PL.



Advantages or differentiators

1. See previous paragraph.

No business model exists (except of ours, confirmed by the Finnish Copyright Council*), to offer eBook to a PL, when a publisher doesn't sell eBook to PL.

*https://bit.ly/oeBookTONstatement

2. "The major publishers dictate license terms to libraries without negotiation, and libraries have virtually no bargaining power to get publishers to negotiate more equitable pricing and access."*

Our solution provides the negotiation power (The New Power**) to PL, by inclusion millions of people efforts (book copying/re-creation/transforming book reproducing & P2P sharing into 'world-without-publishers'), leveraging PL's book reading data resources, like AI-powered search; Nordic e-library
- with the result that publishers, attacking PL, will lose the book market.

Finance

We sell DUAL book covers (mailer forms), 1$/pc., B2G2C for public library patrons.
Revenue streams: several cash flows, see below, next paragraph & slide 5

EBITDA 10 M $ per 50 M population,
if ŒBœks SOM is 3%...10% of SAM, i.e. by a pessimistic scenario:
see slide 4 https://bit.ly/oeBook4US.

Business model

Business model: selling B2B2C book covers/books with margin 200%/100%
& B2B book-as-Interface, for commission 20% off 2€/patron's code p.A.

Cash Flow plan: one book sale per 3 people from population of GDPR-ruled markets, p.A.
e.g. 2 mln. books, Finland; 120 mln. books, USA...
http://bit.ly/oeBookCFPlan

1. We order mailers in our design, at 30 €cents / A3+ size; sell at 90 €cents
2. We order books in ŒBœk cover at 4 €; sell at 8€/12 €, incl. 4€ author royalty
3. We enable 3rd party sales via ŒBœk platform managed by UPC Oy;
for 20% commission from sales by UPC Oy of access to 3rd party service.

Channels: B2B2C, to Public Libraries, which lack eBooks & rare paper books

- via READ-COOP (EU cooperative); currently 100.000+ volunteers & growing
- via MyData Global hubs of MyData Operators; 90 organization members and over 600 individual members from over 40 countries, on six continents
- via Hunkeler AG (world leader in paper processing machinery, solutions for digital books), global sales hubs in every developed country
- we need GDPR/CCPA-ruled markets for our technologies & business model / MyData Global (NGO) approach to personal data processing.

When a needed book is not available from a local PL, a 'BLUE BUTTON' appears (Augmented Reality, AR) at a PL website / at a book cover/for titles image OCR (Optical Character Recognition)
- then a book is self-copied / outsourced via READ-COOP volunteer,
- by a volunteer's smartphone, e.g. by a student for FREE textbook.

How it works:

- a PL patron clicks at the BLUE BUTTON, AI-powered PL recommendation API
- confirms ACCESSIBLE book format & home- / SMART Post box- delivery
- the needed book format is produced at the last mile & cost-effectively delivered

Access code & content are (micro- for eBook) printed at our SmartPaper form of a paper mailer / inside DUAL mailer-envelope for a paper Book, i.e. last-mile-produced, DECENTRALIZED
vs. legacy CENTRALIZED/middlemen (i.e. costly) business models
= DUALbooks, which include both eBook+pBook, become Common Good.

Metrics:
1. Monthly sales of books / book covers, B2B & B2B2C (if beyond PL)
2. Monthly acquisition & payments of 3rd parties to UPC Oy, B2B
3. Monthly acquisition & payment events (Real Time Economy events) by EU coop members to 3rd parties via UPC Oy-managed ŒBœk platform, C2B/2C.

Money will be spent on

30 K$: app development & support, to be purchased at UPC Oy /UpCode
60 K $: salary, other costs of team, to achieve break-even in 6 months
99 K $: Purchasing book on-demand last mile printer RISO (for 3rd party business, decentralized printing of books for 100 K people).
Total: 189 K $
In detail: http://bit.ly/oeBookCFPlan

Offer for investor

10% share against 189 K $ investment

Team or Management

Risks

Risk adverse PL; (wrongly pursued) digitalization brain-washed decision makers in municipalities, funding PL innovations - slow our innovation.

1. E.g. in Finland, PL's suggest me to wait when Finland-wide NEW e-library law comes into force (the law draft is in Finnish parliament since 12.3.2021):
- then Public Lending Right (PLR) royalties will flow from every library eBook loan, as yet existing only from PAPER book loans.

Resolution: we discuss with MyData Global Operators, the City-as-MyData Operator business models; funded by Helsinki, soon by Espoo & others:
see video screen shot at Slide 9 https://bit.ly/oeBook4OmaStadiSlideDeck

PLR for eBook loans exists in the UK, still (my team) efforts are needed to persuade UK PL decision makers to implement our/READ-COOP biz. model.

E.g. in UK, I'm waiting for approval of my (Finnish-confirmed) business model: legality of copying for Private Use of in-copyright books.

I've sent end of July my email proposal to Ben White, PhD researcher at the Centre for Intellectual Property Policy & Management,
Bournemouth University (summer vacations time now slows his response, I assume), approved on 03/8/2021 by the biggest US library, Internet Archive:
https://bit.ly/oeBookSOS

2. We're building our business model at DUAL FACTORS authentication, (multi-factor authentication, MFA), which is required by EU law for strong authentication (e.g. for access to bank services), for copyright law-conform copying a book for a private use (fair deal case exception from copyright).
We are ready to apply Disposable Yet Official Identities authentication, the nascent model, under discussion at EU Commission level (see P.S. https://bit.ly/oeBook4Greece)

Nevertheless, our model enables MFA already now, thanks to TRUSTED, long ago established, secure POSTAL letters messaging logistics, that we mimic by one-sheet mailers. It is accepted two decades back already in France, Germany, UK, USA etc.
I introduced these one-sheet mailers to Russia from my Finnish company since 2006, saving 200 million $ there in postal logistics costs annually.

But I couldn't start these self-mailers sales to Finland after 2012 (when I stopped sales to Russia, due to stopped privacy laws there/contra-GDPR), due to 'digital brain wash' of financing institutions like Venture Capitalists: "we don't believe in paper letters for our digitalized society, in Finland".
The result: "Over half of Finns find online services a hindrance, due to lack of know-how, poor equipment, income problems
- see Slide 17

Incubation/Acceleration programs accomplishment

Yes, during 2018: University of Milano-Bicocca, in consortium of 6 EU Universities.
Program: International Entrepreneurship
Project: MyData DUALbook as a human-centric tool for ethical digitalisation
https://bit.ly/oeBookHHProject

Won the competition and other awards

Nordic Smart Cities Hack, November 2020

Our team SAVA is winner #1, with a solution FINDS, Nordic Library+ Network:
https://hack.sweden.se/smartcity/submissions-winners/

See slide 8 (FINDS logo) bit.ly/oeBook4OmaStadiSlideDeck
2 min. video pitch of our solution FINDS, link* at slide 13:
https://bit.ly/FINDS13Slides
* http://bit.ly/FINDSvideoHack

Invention/Patent

Patents by UPC Oy, our supplier of UpCode, maintenance & support 24/7/365:
9 approved patents + 4 patents pending
https://www.upcodeworld.com/about/
About cooperation with UPC Oy (at pages 1- 2): http://bit.ly/oeBook4NGILedger

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Photo 1 - We end Accessible Book famine, provide eBooks to libraries
Photo 2 - We end Accessible Book famine, provide eBooks to libraries
Photo 3 - We end Accessible Book famine, provide eBooks to libraries
Photo 4 - We end Accessible Book famine, provide eBooks to libraries

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Idea
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