In another blow to Google's plan to create a giant digital library and bookstore, the US Justice Department last week said that a class-action settlement between the company and groups representing authors and publishers had significant legal problems, even after recent revisions.

The New York Times reports that in a 31-page filing that could influence a federal judge's ruling on the settlement, the department said the new agreement was much improved from an earlier version. But it said the changes were not enough to placate concerns that the deal would grant Google a monopoly over millions of orphan works, meaning books whose right holders are unknown or cannot be found. The department also indicated that the revised agreement, like its predecessor, appeared to run foul of authors' copyrights and was too broad in scope. In its court filing, the Justice Department said the proposed settlement posed potential copyright and anti-trust issues, and also used a class action mechanism to 'implement forward-looking business arrangements' rather than simply resolving an existing dispute. ITWeb reports that the department criticised the agreement for requiring authors to 'opt out' of having their books digitised, when copyright law usually requires that authors approve having their works used.
Full report in The New York Times
Full ITWeb report


Meanwhile, the US Department of Justice has joined UC Berkeley professors in objecting to a proposed court settlement that would approve of a Google effort to create a virtual library that would include millions of copyrighted books. The Daily Californian reports that the department echoed the sentiments of some campus faculty in declaring that the proposed settlement gives Google undue control over millions of books and was also too broad in trying to accommodate various concerns brought by the wide range of authors and publishers who would be affected by the proposed settlement. The report notes that a final hearing on the case is scheduled for 18 February. The Justice Department said the settlement was a step in the right direction but still lacked proper safeguards against abuse.
Full report in The Daily Californian


Staying with copyright issues, the CEO of book publisher Macmillan last week said his company is still in talks with online retailer Amazon.com over the pricing of its books, even as Hachette Book Group vowed to protect its authors through a new model for prices. According to a report on the IoL site, publisher Hachette said it would transition to an 'agency model' for the sale of its e-books, but provided few details and did not name Amazon. Analysts define the model as one that transfers the retail pricing power to the publisher and gives a fixed cut to retailers.
Full report on the IoL site