Would the same apply if the book wasn't marked as owned, though?
That's an interesting question. I'm not sure I know the answer to that. If the book was unowned, Responsibility wouldn't be a factor. You've stumped me. I don't have the faintest idea.
I know that NPCs are "programmed" to pick up a better weapon. I used to drop Iron daggers in front of Goblins in the tutorial dungeon so that they would pick it up and hit me with it instead of using their fists (This was a powergaming cheat on my part: Goblins did more damage with their fists but the game didn't recognize that. The game only knew that the Goblin was unarmed. So it made the Goblin pick up my Iron dagger. The Iron dagger did less damage to me and as a result I got hit more times with it and suffered less loss of HP and leveled up my armor faster.)
ANYWAY, back to the subject - so I'm thinking it's possible that the Jermaine Brother picked up the sword as part of this hard-coded AI all NPCs are equipped with. The question is, does this hardcoded AI behavior apply to books as well? I frankly don't know. I've run up against the outer barriers of my knowledge of Oblivion AI mechanics. My brain is telling me "You cannot go that way. Turn back."