by Search Copywriter
D. Warburton
D. Warburton
The proposed $125 settlement between Google and the Association of American Publishers (AAP) and Author's Guild has been rejected by the US Department of Justice, due to copyright and antitrust issues.The agreement would have led to Google's creation of a vast digital library of published works, in addition to the controversial Book Rights Registry. According to ITProPortal, the registry would have allowed consumers to purchase online books while allowing copyright holders to exclude their works.
The Justice Department decided that the deal "should be rejected in its current form" due to antitrust issues, a move that was backed by the US Government which agreed that the court should: "reject the proposed settlement in its current form and encourage the parties to continue negotiations to modify it so as to comply with ... copyright and antitrust laws."
The settlement would have seen Google receive 30 per cent of each digital sale, with the other 70 per cent going to the author and publisher. Google would have also received the right to digitise orphan works - works whose right-holders are unknown.
Although many publishers and antitrust organisations opposed the deal, including the Open Book Alliance which received support from a coalition of Microsoft, Yahoo! and Amazon, Google has previously stated that the deal would in fact encourage competition in the digital books industry.
The Open Book Alliance states that it "is pleased with the action taken today by the Department of Justice, which we believe will help to protect the public interest and preserve competition and innovation."
The rejection of the Google Books deal is a rare setback for Google, which is experiencing great financial success despite the recession.
