Google submits revised book settlement

SAN FRANCISCO — Google will loosen its control over millions of copyright-protected books that will be added to its digital library if a federal judge approves a revised legal settlement addressing the earlier objections of antitrust regulators.

The concessions, filed late Friday in New York federal court, come two months after the U.S. Justice Department balked at Google's original agreement with authors and publishers, warning the arrangement could do more harm than good in the emerging market for electronic books.

Google, the Internet's search leader, is hoping to keep the deal alive with a series of new provisions. Among other things, the modified agreement provides more flexibility to offer discounts on electronics books and promises to make it easier for others to resell access to a digital index of books covered in the settlement.

Copyright holders also would have be given more explicit permission to sell digital book copies if another version is being sold anywhere else in the world.

The changes are just the latest twist in a class-action lawsuit filed against Google four years ago by groups representing the interests of U.S. authors and publishers. The suit alleged Google's ambition to make digital copies of all the books in the world trampled over their intellectual rights.

Google negotiated a $125 million truce nearly 13 months ago only to have it fall apart as a chorus of critics protested to U.S. District Judge Denny Chin, who must approve the agreement before it takes effect.

Among other complaints, the opposition said the plan would put Google in charge of a literary cartel that could illegally rig the prices of electronic books — a format that is expected to become increasingly popular.

In echoing some of those concerns, the Justice Department advised Chin that the original settlement probably would break laws set up to preserve competition and protect copyright holders, even if they can't be located.

French and German officials also protested the settlement, arguing that it's so broad that it could infringe on copyrights in their countries.

The revised settlement would apply only to books registered with the U.S. Copyright Office or published in Canada, the United Kingdom or Australia.

Much of the concern about the settlement has focused on whether it would give Google a monopoly on so-called "orphan works" — out-of-print books that are still protected by copyright but whose writers' whereabouts are unknown.

If the writers or their heirs don't stake a claim to their works, the revised settlement will designate an independent party to oversee the financial interests of the orphan books' copyright owners.

Google already has gone into some of the nation's largest libraries to scan about 6 million out-of-print books. So far, though, it has only been able to show snippets of those digital copies.

The Justice Department urged Google, authors and publishers to come up with an alternative plan because it believes the public will benefit by having more books — including millions no longer in print — available to anyone with an Internet connection.

Even if the new agreement placates the Justice Department, Google could still face objections from powerful forces.

Microsoft, Yahoo and Amazon.com are part of a group called the Open Book Alliance that spearheaded the charge against the original settlement. It was unclear late Friday whether the changes will be enough get them to back off.

All the critics still will have a chance to express any misgivings they still have before Chin holds a hearing to review the pros and cons of the new settlement. A hearing date hasn't been set.