Google's attempt to finalize a legal settlement with book authors and publishers may face an uphill battle in court, unless it modifies certain privileges and rights. Google is attempting to establish the world's largest digital library and bookstore. The Justice Department has opined that such an endeavor must come with specific limitations, approved by a court.
The Justice Department said that while the agreement would provide many benefits to the public, it also raised significant issues regarding class-action, copyright and antitrust law. Specifically, the Department noted in its legal filing that “as presently drafted the proposed settlement does not meet the legal standards this court must apply.” “This court should reject the proposed settlement and encourage the parties to continue negotiations to comply with Rule 23 and the copyright and antitrust laws.” Rule 23 establishes procedures for class-action lawsuits. Specifically, the filing states:
The central difficulty that the Proposed Settlement seeks to overcome – the inaccessibility of many works due to the lack of clarity about copyright ownership and copyright status – is a matter of public, not merely private, concern. A global disposition of the rights to millions of copyrighted works is typically the kind of policy change implemented through legislation, not through a private judicial settlement. If such a significant (and potentially beneficial) policy change is to be made through the mechanism of a class action settlement (as opposed to legislation), the United States respectfully submits that this Court should undertake a particularly searching analysis to ensure [...] that the settlement is consistent with copyright law and antitrust law. As presently drafted, the Proposed Settlement does not meet the legal standards this Court must apply.
Google and the groups representing publishers and authors that had helped structure the settlement cautiously welcomed the Justice Department’s filing for its clear indication that the government wanted to work with them to move the deal forward. “Clearly the Justice Department sees the tremendous value that this settlement would bring to readers, students and scholars,” said Paul Aiken, executive director of the Authors Guild. “We don’t want this opportunity to be lost.”
In a joint statement with the guild and the Association of American Publishers, Google said, “We are considering the points raised by the department and look forward to addressing them as the court proceedings continue.”
If approved, the settlement would resolve class actions filed in 2005 by the groups representing authors and publishers against Google in the United States District Court for the Southern District of New York. The suits claimed that the company’s plan to digitize millions of copyrighted books from libraries without prior approval from rights holders was illegal.
Federal District Court Judge Denny Chin has scheduled a hearing on the case for Oct. 7. While the Justice Department is not a party to the case, legal experts say the court is likely to seriously consider its views. The settlement would allow Google to go forward with its scanning project and absolve it of copyright liability. It would also greatly expand what Google can do with digital copies of copyrighted books.
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