US Justice Dept Voices Concerns Over Google Books Settlement
September 18 2009 - 11:25PM
Dow Jones News
The U.S. Department of Justice voiced several concerns Friday
night about a legal settlement Google Inc. (GOOG) struck with
authors and publishers to make millions of books available online,
and encouraged the parties to make changes to the deal that would
address those objections.
"Because a properly structured settlement agreement in this case
offers the potential for important societal benefits, the United
States does not want the opportunity or momentum to be lost," the
department said in a 32-page legal brief.
Government lawyers said the current settlement raised antitrust,
copyright and class-action law concerns, and should be rejected in
its current form.
The department said the agreement needed better protections for
unknown copyright holders and should better address the concerns of
foreign authors and publishers. The department also said the
parties should limit some licensing provisions, eliminate
joint-pricing mechanisms among publishers and authors and address
other competition concerns.
The department's comments came in a brief filed with a federal
trial judge in New York who must decide whether to approve the
settlement. U.S. District Court Judge Denny Chin has scheduled a
hearing for Oct. 7 to consider the matter.
Google reached the settlement last year, agreeing to pay $125
million to establish a registry to allow authors and publishers to
register their works and get paid when their titles are viewed
online. The deal resolved a consolidated lawsuit in which authors
and publishers sought to block the company from scanning books and
making them searchable online. The plaintiffs alleged that Google's
book search project violated copyrights.
Supporters and critics of the settlement have flooded Chin with
comments on the pending agreement.
Critics, including Microsoft Corp. (MSFT) and Amazon.com Inc.
(AMZN) say the settlement gives Google a new monopoly to exploit
copyrighted books and could make it difficult for rivals to compete
in the market for digital titles.
Google and its supporters say the deal is a landmark agreement
that will give the reading public unprecedented access to digital
books and open up a new stream of revenue for authors and
publishers.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com