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Justice looks into Google deal

Google may be facing a new threat to its plan to digitize millions of books.

Both the New York Times and Wall Street Journal report the United States Department of Justice is beginning an inquiry into a $125m settlement the company reached with publishers earlier this year.

Under the terms of the deal, the company agreed a payout to publishers to settle a 2005 suit filed over the company's decision to digitize copyrighted works.

If the department takes action in the case, it could jeopardize the company's plan to construct a massive digital book archive.

Google has been working on the project for some five years. It secured deals with many of the world's top libraries to put their entire catalogues online.

This month, Google announced it would be opening an online market for e-books.

On April 28, 2009, a federal court overseeing the Google Book Search Copyright Settlement extended the opt-out deadline for rights-holders in the case from May 5, 2009 to September 4, 2009.

The extended opt-out deadline was a new date by which class members must decide whether to remain in the settlement class and receive the benefits of the settlement, object to the settlement, or opt out of the settlement.

Under the terms of the settlement, agreed between Google and the Association of American Publishers and US Authors' Guild in October 2008, Google agreed to pay $60 per title for in print books it already digitised.

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13june09 317
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