...AND CHEAPER...:

In 2011, [Ariel Diaz] started Boundless Learning, a Boston company that has begun giving away free electronic textbooks covering college subjects like American history, anatomy and physiology, economics, and psychology.

What's controversial is how Boundless creates these texts. The company trawls for public material on sites like Wikipedia and then crafts it into online books whose chapters track closely to those of top-selling college titles. In April, Boundless was sued by several large publishers who accused the startup of engaging in "the business model of theft."

Theft or not, the college textbook industry is ripe for a disruptive shock from the Internet. Publishers today operate using what Mark Perry, a professor at the University of Michigan, calls a "cartel-style" model: students are required to buy specific texts at high prices. Perry has calculated that prices for textbooks have been rising at three times the rate of inflation since the 1980s.

On average, college students spend around $1,200 each year on books and supplies. Those costs, which sometimes exceed the tuition at a community college, are prompting a wider rebellion against commercial publishers. In February, California legislators passed a law directing the state to produce free versions of texts used in the state's 50 most popular college courses. In October, Secretary of Education Arne Duncan said printed textbooks, a $6 billion industry in the United States (when sales of both used and new books are tallied), should be made "obsolete."

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