Six months after Google settled copyright issues with the Authors Guild, a group with 8,000 authors, and the Association of American Publishers, which has more than 300,000 member organizations, the U.S. Department of Justice is probing the settlement. DOJ lawyers are considering whether the settlement is anticompetitive, The Wall Street Journal and The New York Times reported.
In 2004, Google announced it had agreements with several libraries to digitize books, including books protected by U.S. copyright law. But several authors and publishers sued the Internet search giant, saying digitizing the books without permission infringed on their copyrights.
Rather than continue an already lengthy, two-year dispute, the groups agreed to a settlement. It allows Google to digitize books and inserts, sell subscriptions to an electronic books database, sell online access to individual books, display portions of books to encourage sales of online books, and display snippets of books.
Orphan Works at Core
At the core of the DOJ probe is that Google will have sole control over digitized orphan works. Orphan works are copyrighted works where it is challenging or impossible to find the copyright holder.
The settlement says Google will be able to take advantage of future legislation allowing the use of orphan works in Google products or services, and protects it from future litigation by a rights holder.
Google has invested time and money into the discovery, scanning and digitizing of orphan works and has worked with libraries to get the works digitized.
"We think the proposed settlement contains an attempt to help address the important issue of public access to orphan works -- those copyrighted works whose owners cannot be located," said Jef Pearlman, an Equal Justice Works fellow and staff attorney with Public Knowledge. "However, it also raises serious competition questions, and so it's definitely worth the Justice Department looking into it."
A Barrier for Competitors
Groups such as Consumer Watchdog are asking the courts to deny the settlement because it raises antitrust concerns. The nonprofit group asked the DOJ to intervene.
In letter dated April 1, Consumer Watchdog asked Attorney General Eric Holder and other DOJ officials to seek a delay of the settlement until a "most favored nation" clause favoring Google is taken out and the deal's orphan-works provision is extended to cover all who might digitize books.
"The danger of using and selling such works is that a rights holder will emerge after the book has been exploited and demands substantial infringement penalties," John Simpson, consumer advocate with the group, said in his letter. "The proposed settlement protects Google from such potentially damaging exposure, but provides no protection for others. This effectively is a barrier for competitors to enter the digital book business."
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