U.S. Steps Up Inquiry of Google Book Settlement - NYTimes.com

 U.S. Steps Up Inquiry of Google Book Settlement - NYTimes.com

U.S. Presses Antitrust Inquiry Into Google Book Settlement

By MIGUEL HELFT

Published: June 9, 2009

SAN FRANCISCO — 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.

“They are asking for a lot of information,” Mr. Boni said. “It signals that they are serious about the antitrust implications of the settlement.”

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

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

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.

U.S. Steps Up Inquiry of Google Book Settlement - NYTimes.com