[A2k] U.S. Presses Antitrust Inquiry Into Google Book Settlement

[Judit Rius Sanjuan]

http://www.nytimes.com/2009/06/10/technology/companies/10book.html?ref=3Dbu=
siness
June 10, 2009
U.S. Presses Antitrust Inquiry Into Google Book Settlement
By MIGUEL HELFT
SAN FRANCISCO =97 In a sign that the government has stepped up its
antitrust investigation of a class-action settlement between Google
and groups representing authors and publishers, the Justice Department
has issued formal requests for information to several of the parties
involved.

The Justice Department has sent the requests, called civil
investigative demands, to various parties, including Google, the
Association of American Publishers, the Authors Guild and individual
publishers, said Michael J. Boni, a partner at Boni & Zack, who
represented the Authors Guild in negotiations with Google.

=93They are asking for a lot of information,=94 Mr. Boni said. =93It signal=
s
that they are serious about the antitrust implications of the
settlement.=94

The Justice Department began its inquiry into the sweeping $125
million settlement this year after various parties complained that it
would give Google exclusive rights to profit from millions of orphan
books. Orphans are books still protected by copyrights, but that are
out of print and whose authors or rights holders are unknown or cannot
be found.

Attorneys general in several states are also investigating the
settlement.

The complex settlement agreement, which is subject to review by a
federal court, was aimed at resolving a class action filed in 2005 by
the Authors Guild and the Association of American Publishers against
Google. The suit claimed that Google=92s practice of scanning
copyrighted books from major academic and research libraries for use
in its Book Search service violated copyrights.

Under the settlement, announced in October, Google would have the
right to display the books online and to profit from them by selling
access to individual titles and by selling subscriptions to its entire
collection to libraries and other institutions. Revenue would be
shared among Google, authors and publishers.

Critics said that the settlement would unfairly grant Google a
monopoly over the commercialization of millions of books.

The Justice Department=92s requests do not necessarily mean that the
government will oppose the settlement. But the department=92s
investigation could delay any approval of the settlement, antitrust
specialists said.

=93The government must be a lot further along with this than people
thought,=94 said Gary Reback, a lawyer who wrote a book on antitrust.
=93Now, there is a big boulder sitting on the judge=92s desk. It is hard
to see the judge approving this if a government investigation is
pending.=94

Judge Denny Chin of Federal District Court in Manhattan, who is
overseeing the settlement, is to hold a hearing in September.

The Wall Street Journal reported on its Web site Tuesday that some
publishers had received civil investigative demands.



Judit Rius Sanjuan
Attorney
Knowledge Ecology International / Essential Information
www.keionline.org / www.cptech.org
Phone: +1.202 332 2670, ext 18