The Shatzkin Files


Google settlement opponents need to be careful how they win


The debate about the Google settlement, like most of any consequence or intellectual interest (what the government should do about health care or energy, for example) actually engages a wider range of knowledge than most of us have. But we feel comfortable having an opinion about what we should do about health care or energy without necessarily knowing much about the logistics, requirements, actual state of affairs, or cost-value relationships of what we favor or oppose.

We each start with a general position. For example, mine on health care is that government intervention is required to make sure everybody has a minimum reasonable standard of care. On energy I believe government policy should encourage energy development and consumption that is efficient and unwasteful while increasingly substituting renewable energy for resource-consuming energy.

My personal political positions are directional, not very specific. Others, perhaps because they’re better informed, have more aggressive and articulated views. I know people who think health care isn’t worth fighting for unless it is single payer; that anything else could make matters worse. I am sure there people that hold similar positions on energy that I would deem “perhaps desirable, but not politically achieveable at this time”. They’re my allies unless their idea of “perfect” blocks my idea of “better”.

And then there are others, of course, who aren’t allies at all: people who believe that market forces can be trusted with social challenges or simply resist the idea of any expansion of government or increase in taxes.

But when it comes to the details of legislation, most of us just plain citizens are pretty helpless even to have an informed opinion, let alone to have any influence. The staffs of our legislators are hearing about the details from the experts representing doctors, hospitals, insurance companies, drug companies, left- and right-wing lobbyists. If Charlie Rangel says that a very modest tax increase on people making over $350,000 or $500,000 a year will bring the costs into line with the parameters President Obama says are economically necessary. Assuming there is no chorus of objections from sources I trust (Krugman), I’ll just accept that as fact. It advances my philosophical position and I tend to trust him. I mean, who really “does the math” for themselves on things like this? Without being a professional, how could you?

The Google settlement might not be as complicated as health care or energy, but the debate about it also revolves around a lot of unknowns. Although the argument between those who say “approve it” and those who say “reject it” or even, “reject it if you can’t change it” is superficially waged on the “merits” and on the words in the settlement, I believe most of us come to this extraordinarily complicated question with a position and then put each new piece of information (or argument) into a “context” that won’t require us to change that position. And since we’re dealing with a lot of unknowns, that’s not really very hard to do.

My dominant prejudice I bring to this conversation is a belief that copyright laws have been extended so that they are abusive to the public interest and result in a lot of intellectual property being walled off from use for no good commercial reason. With that as a background belief, I saw what Google did (scanning all the work) as cutting a Gordian knot. Others come to this discussion with a dominant concern of respect for copyright or a dominant concern of bullying monopolies. Their prejudice might lead them to be against the settlement while mine pushes me to favor it.

Today’s post is not to argue that the settlement should be approved, but to consider what the situation will be if the settlement is rejected. The proponents and opponents of the settlement certainly seem to differ on what the world will look like if the settlement is approved; might there be somewhat greater agreement between the sides about what the world will look like if the settlement is rejected?

To me, it looks a short story.

The consequences of the settlement being rejected seem catastrophic to settlement opponents if it is turned down because the litigants are deemed not to fairly represent the classes (that is: the judge buys into the the idea that foreign authors, contributors, and orphans and perhaps others are “left out”). If the class representation is overturned or curtailed, it would be somewhere between difficult and impossible for these lawsuits to go on (and there are two lawsuits, even though there is one settlement.) If the settlement is rejected for some other reason (perhaps: the judge agrees that it can’t be allowed because it grants Google what would be a monopoly), then presumably the litigation could go on.

If rejection of the settlement is because the AAP and/or AAR don’t represent the class, Google would be in a stronger position than they were before the suit. There would be no database of orphan works to sell litigation-risk free, but the scans for search and returning of snippets would just continue. Authors could individually sue for copyright infringement if they wanted to try. Nobody would be any more tempted to “compete” with Google by scanning in-copyright works than they are now. And Google would have the benefit of having smoked out a lot of potential litigants because the faux settlement got a lot of copyright holders to come forward.

A little-known fact is that most of the value of the database Google was going to sell was in the in-copyright works that would have been ceded to the database. (This came up obliquely because these are the copyright holders who are going to get bonus revenue from the money earned by the page views on orphans, a fact settlement opponents have raised.)

That being the case, somebody will want to distribute that database, even without the orphans. That somebody will have to negotiate with Google to get the digital files and then with each of the publishers for their rights, without a BRR to help them. A pain in the neck, but in a few years it would probably happen.

If the settlement is rejected for some other reason, all of the above (except the part about still selling that database, since the copyright owners would still be in litigation with Google over this scanning and their lawyers would advise them against it; they can’t license a use for the scans they want to say Google shouldn’t have!) remains true and the AAP and the AAR get to decide whether to continue to fund the suit for the next several years while they and Google keep talking, presumably, about something that would satisfy the court (a bit odd, since they already satisfied each other!) If that were to happen, would the opponents of the settlement somehow help them carry on? Or step in to litigate in their stead?

If this analysis is right (and I float it with all humility: IANAL), then the opponents of the settlement walk a fine line. They want it rejected, or remanded to the litigants with some instructions they can actually follow. But they don’t want the plaintiffs discredited as representatives of the class. It would be the height of irony if Google, which probably had foregone challenging the standing of the AAR and AAP at the beginning to avoid antagonizing two organizations they ultimately need to work with, gets a court victory they didn’t seek handed to them by people motivated to make their lives more difficult. This could end up being a textbook demonstration of “unintended consequences.”

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    [...] Google settlement opponents need to be careful how they winMike Shatzkin looks at the GBS settlement from the perspective of be careful what you ask for. [...]

  • guestguest

    interesting insights! if I were you, I'd consider sending a letter to the judge.

  • InklingBooks

    Your humility is amply justified. You really don't understand this dispute, although that's not really your fault. You've depended on what the media has been reporting. That's almost always a bad idea and in this case it has been particularly bad. Most reporters have taken their cues from Google press releases.

    That's why you get so much wrong. For instance, I suspect most opponents of the settlement do want the plaintiffs discredited as class representatives. The ones I'm involved with in legal action definitely do. (I was one of 7 authors or their representatives who successfully petitioned the court for a four-month extension in the deadline.)

    As the legally sanctioned representatives of publishers and authors, they've done a dreadful job. Google gets free use, within the US, of virtually every out-of-print book on the planet. What do the others affected by this dispute get?

    Publishers get Google as a competitor having the largest backlist on the planet. Google will have the right to display those books in what it hopes will be lucrative advertising contexts.

    It is true that publishers think that they'll be able to use the registry to locate authors of 'orphan works,' selecting the best for publication. They're in for a rude awakening. Currently, copyright holders have turned up for only 4 percent of the books that Google has scanned and that number will decline if Google wins. Publicity about the display will drop to almost nothing and Google's scanners will go into warp drive. Publishers will soon discover that the registry lists so few authors, it's hardly worth consulting.

    Authors are in an even worse position. Currently, most authors I talk with who've looked into the settlement are confused. The settlement terms begin with 160 technical definitions and go on for over 300 pages. If you adopt the sensible position that you shouldn't sign anything you don't understand, then signing makes no sense. Almost no one will get enough out of the settlement to justify the effort required to understand, in even the most rudimentary fashion, what it means.

    I also try to warn them that it matters little what they think the settlement says. All that matters is what Google wants it to say. They control what they do with your works. If you disagree, you'll have to take on all the lawyers a $28 billion corporation can afford. That's a fight you can never win.

    And perhaps the best indication that something evil is afoot is the widespread misunderstanding of what this settlement means. Only last week I was contacted by an experienced IP lawyer in New Zealand who's active in Internet issues. He had just discovered, to his great shock, that the settlement applies to New Zealand authors. That's an indication of just how little effort Google and the two sham plaintiffs have made to inform those impacted by the settlement about what it really means.

    Finally, the real problem with the Google settlement isn't that the plaintiffs don't represent their classes. That's so obvious, it hardly needs defending. It's that the Google settlement violates treaty obligations we have with some 160 countries.

    Under the Berne convention, a country can impose no formal procedure before copyright protection is extended, even a simple filing process with the government. The Google settlement requires that all those, wherever they live, who want to maintain their copyright protection in the U.S. go through a formal process with a private party and do so within an extremely short time period (the September 4 deadline). That simply doesn't pass muster. It isn't even close.

    The Berne Convention also sets the minimum term of copyright protection is the life of the author plus 50 years. The Google settlement reduces that to 'scanned by Google' plus a few weeks.

    There's simply no way the Google settlement can be reconciled with those treaty obligations. That's why Google has been extremely careful not to inform foreign authors of the startling fact that come September 4, they effectively lose their U.S. copyright.

    All this, of course, will eventually come out. If you read Google's FAQ about the settlement, you'll see hints that they're assuming that other countries will retaliate by treating U.S. authors, inside their borders, like a U.S. court has treated their authors. Google will then use the resulting international clamor to get even richer.

    I suspect the opposite will happen, that other countries will be intelligently outraged and direct their anger at the more lucrative portions of U.S. intellectual property, movies and music. They don't have to abrogate our copyrights. They'll simply forget to enforce violations against U.S. copyright holders.

    If this settlement is approved, things could get very, very nasty. You can track some of the international developments as they happen at a web page I have set up.

    http://inklingbooks.com/googlesettlement/google…

  • http://idealog.com/blog Mike Shatzkin

    Thanks, guestguest, but I think the judge has plenty to consider without hearing from me. Unlike many people weighing in on this topic, I make no pretense of knowing what the correct application of the law would be. I think about what makes commercial sense and what's in the public interest. The law sometimes is consistent with those things and sometimes it's not.

  • http://idealog.com/blog Mike Shatzkin

    I think some humility on your part would be justified too. But you don't seem to have any.

    Many things you say may be true but the notion that most of my information about the Google settlement comes from the public press sure isn't. I am very thoroughly exposed to the arguments of many people who strongly object to the settlement.

    You obviously have more knowledge than I do about international copyright conventions. But you aren't showing much knowledge of US law or the realities of a class action suit. There was a litigation; the AAP and AG were certified as representatives of the class to pursue the suit against Google. They are attempting to settle it. You complain that individuals would have very little chance litigating against Google and that's one thing a) you're right about, and b) we agree about. That was, sort of, the point to my post. Which seems to have been lost in the justification of my humility.