Indie Booksellers Sue Amazon, Big Six over E-book DRM
publishersweekly.com
publishersweekly.com
However, I have no sympathy for these publishers on the DRM front. If they want DRM then they can pay the piper (i.e. Amazon/Apple). I personally don't see a lot of merit in this lawsuit as long as Apple, Amazon, etc. allow users to load their own third party books onto the devices. (And you can make your own books for the devices.)
Nobody is stopping them from selling books for the iPad/Kindle, lots of publishers like O'Reilly and Baen do. They're just stopping them from using Amazon/Apple's DRM without paying Amazon/Apple for the privilege. The same thing happened with music, and the industry eventually decided to drop the DRM. (And I think Apple is still selling a decent amount of music without it.)
It sounds like they are asking the courts to order some kind of "open source DRM" that they can use. If they don't want to use DRM, Kindle and iBooks work great today. If they don't want anyone to use DRM, then the article is misrepresenting them.