Technology and I.P.

  • March 22, 2011
    The epic legal drama continues over Google's effort to digitize millions of books for a universal library.

    Federal Judge Denny Chin has rejected a class action settlement that Google had reached with a coalition of authors and publishers, saying the settlement "would simply go too far."

    Chin continued, that the settlement would "grant Google significant rights to exploit entire books, without permission of the copyright owners," and give Google "a significant advantage over competitors, rewarding it for engaging in wholesale copying of copyrighted works without permission, while releasing claims well beyond those presented in the case."

    The Google books project was challenged in federal court by the Authors Guild and Association of American Publishers. In 2009 a settlement between the parties was reached, stating that Google could create a registry of books and pay $125 million to people whose copyrighted books have been scanned and to locate the authors of scanned books who have not come forward, Reuters reports. The settlement, Bloomberg notes, would have also provided Google "immunity from copyright laws, allowing the company to distribute millions of books on the Internet in exchange for sharing the revenue it would generate."

    Responding to Judge Chin's 48-page opinion, the Authors Guild said in a press statement that it "lauds the many benefits of the settlement," and "has left the door open for a revised agreement. In his conclusion, Judge Chin says that ‘many of the concerns raised in the objections would be ameliorated if the ASA [the Amended Settlement Agreement] were converted from an ‘opt-out' settlement to an ‘opt-in settlement. I urge the parties to consider revising the ASA accordingly.'"

    Hillary Ware, a managing counsel for Google, expressed disappointment in Chin's opinion, saying the company was considering its options," The Wall Street Journal reports.

    "Like many others," Ware added, "we believe this agreement has the potential to open-up access to millions of books that are currently hard to find in the U.S. today."

    In an ACS Issue Brief, James Grimmelmann, a law professor at New York Law School's Institute for Information Law and Policy, examined the Google Books settlement. David Balto, a senior fellow at the Center for American Progress also explored the settlement in this guest post for ACSblog.

  • March 15, 2011
    The cyberspace advertising and search engine behemoth Google is increasingly drawing the attention of Congress.

    As noted by The Wall Street Journal, Sen. Herb Kohl, chairman of the Senate Judiciary Antitrust Subcommittee "may hold hearings on Google this legislative session to examine whether the company is abusing its dominance in the Internet search market."

    In a press release, Kohl lays out the agenda for the subcommittee's work during this congressional session, including an examination of "Competition in Online Markets/Internet Search Issues."

    The statement continues:

    In recent years, the dominance over Internet search of the world's largest search engine, Google, has increased and Google has increasingly sought to acquire e-commerce sites in myriad businesses. In this regard, we will closely examine allegations raised by e-commerce websites that compete with Google that they are being treated unfairly in search ranking, and in their ability to purchase search advertising. We also will continue to closely examine the impact of further acquisitions in this sector.

    Google is already facing official scrutiny over its search-engine tactics in Europe.

    The New York Times reported in February that the European Commission "began a formal antitrust investigation of Google three months ago looking for evidence that Google had the power to shut out competition and restrict advertisers from doing business with other search engines."

  • February 25, 2011
    Google's massive effort to create a digital database of books is still tangled in a class action lawsuit, and as Marc Rotenberg, executive director of the Electronic Privacy Information Center (EPIC) tells Politico Pro, a subscriber-based service, was "entirely based on giving Google control over many of the nation's historic library resources and then be a gatekeeper for who could get access to those materials."

    In his interview with Politico Pro, Rotenberg expounded on the legal battle over the Google books project, adding that it was "taking materials that were freely available and now seeking to charge for them. And also was hoping to collect a great deal of information from people wanting to get access to the materials."

    In an ACS Issue Brief, James Grimmelmann, a law professor at New York Law School's Institute for Information Law and Policy, outlined similar concerns, writing that "Google has been systematically making digital copies of books in the collections of many major university libraries. It made the digital copies searchable through its web site - you couldn't read the books, but you could at least find out where the phrase you're for appears within them. This outraged copyright owners, who filed a class action lawsuit to make Google stop." The settlement of the class action has not been resolved, but in his Issue Brief Grimmelmann asserted that the settlement "would give Google a license not only to scan books, but also to sell them."

    Rotenberg also told Politico Pro that he believes "Google is posing the greatest privacy challenges to the future of the Internet. The reason for that is simple: Google exercises a dominant position over most of the essential Internet services. That includes search, e-mail, advertising, online video and increasingly the Web browser. Each one of those activities involves intensive data collection. The risk associated with Google's dominance of the Internet leads very directly to growing concerns about the privacy."

  • February 2, 2011
    In mid-January news reports surfaced that the U.S. Department of Justice was considering an antitrust lawsuit against Internet advertising giant Google over its plan to purchase an online travel information service. Bloomberg reported that DOJ was rankled over Google's planned acquisition of ITA Software, which provides online flight and ticket information.

    Citing a report by The Wall Street Journal, PCWorld reports that it appears that Google is now working to save its plan to capture ITA by hashing out an "agreement that could head off a court challenge." According to WSJ, PCWorld reports, the proposal would have "Google agree to form a compulsory licensing that would prevent it from withholding ITA's data from competitors. But the details of such an agreement are complex because of the fast-changing nature of the sector."

    PCWorld notes, "ITA is the dominant software player in the online air-travel industry, booking nearly two-thirds of web-based flight bookings, so getting the green light would put Google in a powerful position within yet another online sector."

    Pamela Jones, a former member of the Federal Trade Commission told Bloomberg that the planned merger "is uncompetitive and should be challenged. It's a dominant firm expanding in an adjacent market acquiring ITA, and the effect would be to dominate flight search."

  • January 21, 2011
    Verizon, apparently bent on challenging any amount of government regulation of the Internet, is aiming its resources at the Federal Communications Commission's recent regulations intended to keep service providers from blocking content in cyberspace.

    In a lawsuit lodged in the U.S. Court of Appeals for the District of Columbia Circuit, Verizon is arguing that the FCC regulations, widely considered a compromise, between groups who advocate for the greatest possible access to Internet content and business interests, such as Verizon, are onerous.

    Michael Glover, a Verizon senior vice president, issued a statement saying, "We are deeply concerned by the F.C.C.'s assertion of broad authority for sweeping new regulation of broadband networks and the Internet itself. We believe this assertion of authority goes well beyond any authority provided by Congress, and creates uncertainty for the communications industry, innovators, investors and consumers."

    Free Press a public interest group that promotes "universal access to communications," blasted Verizon's lawsuit.

    Aparna Sridhar, the group's policy counsel, said in a statement:

    Verizon's decision demonstrates that even the most weak and watered-down rules aren't enough to appease giant phone companies. It's ironic that Verizon is unhappy with rules that were written to placate it, and it's now clear that it will settle for nothing less than total deregulation and a toothless FCC in the relentless pursuit of profit.

    In a guest post for ACSblog, the Electronic Frontier Foundation's Abigail Phillips examined the FCC's regulatory proposal on net neutrality, writing that according to FCC statements, the new rules "appear to be riddled with loopholes and exemptions, to the point where the FCC's declaration that the order represents bright-line rules and a framework for predictability is hard to reconcile."