Author: fred

  • Court Rejects FCC Authority Over the Internet

    In a ruling that imposes important limits on the FCC’s authority to regulate the Internet, the D.C. Circuit Court of Appeals today overturned the FCC ruling against Comcast for interfering with the BitTorrent traffic of its subscribers. The court found that the Commission had overstepped the limits of its “ancillary authority” when it disciplined Comcast for its clandestine blocking behavior.

    The ruling is not likely to make much difference to Comcast subscribers—Comcast had already agreed to cease its BitTorrent interdiction before the FCC’s ruling was issued. Instead, the court’s ruling is important because it represents a blow to FCC Chairman Genachowski’s proposed net neutrality regulations, which are premised on the same theory of “ancillary jurisdiction” that the FCC used against Comcast and that the court rejected today.

    Here’s the problem: Congress has never given the FCC any authority to regulate the Internet for the purpose of ensuring net neutrality. In place of explicit congressional authority, the FCC decided to rely on its “ancillary jurisdiction,” a catchall source of authority that amounts to “we can regulate without waiting for Congress so long a the regulations are related to something else that Congress told us to do.” Of course, this line of reasoning could translate into carte blanche authority for unelected bureaucrats to regulate the Internet long after Chairman Genachowski has moved on. As we put it in October:

    If “ancillary jurisdiction” is enough for net neutrality regulations (something we might like) today, it could just as easily be invoked tomorrow for any other Internet regulation that the FCC dreams up (including things we won’t like). For example, it doesn’t take much imagination to envision a future FCC “Internet Decency Statement.” After all, outgoing FCC Chairman Martin was a crusader against “indecency” on the airwaves and it was the FCC that punished Pacifica radio for playing George Carlin’s “seven dirty words” monologue, something you can easily find on the Internet. And it’s also too easy to imagine an FCC “Internet Lawful Use Policy,” created at the behest of the same entertainment lobby that has long been pressing the FCC to impose DRM on TV and radio, with ISPs required or encouraged to filter or otherwise monitor their users to ensure compliance. After all, it was only thanks to a jurisdictional challenge … that we defeated the FCC’s “broadcast flag” mandate which would have given Hollywood and federal bureaucrats veto power over innovative devices and legitimate uses of recorded TV programming.

    So while we are big supporters of net neutrality, we are glad that today’s ruling has reasserted the important limits on the FCC’s authority to regulate the Internet.

    The fight now moves back to Congress and the FCC, with numerous net neutrality advocates urging the FCC to “reclassify” Internet access services under Title II of the Communications Act—another effort to find FCC authority to regulate ISPs without having to go to Congress. In the meantime, everyone who cares about net neutrality will continue to watch ISPs closely for more evidence of discriminatory practices.

  • 50,000 New Lawsuits Against Movie Downloaders

    According to The Hollywood Reporter, a group known as the “U.S. Copyright Group” has quietly targeted 20,000 Bit Torrent users for legal action in federal court in Washington, DC. The targets are accused of having downloaded independent films, including “Steam Experiment,” “Far Cry,” “Uncross the Stars,” “Gray Man” and “Call of the Wild 3D,” without authorization. The group plans to target 30,000 more individuals for legal action in the coming months.

    This time, the lawyers involved are being explicit about their motivations: it’s all about the money. “We’re creating a revenue stream and monetizing the equivalent of an alternative distribution channel,” said one of the attorneys involved. The cases are taken on a contingency basis, designed so that quick settlements will prove lucrative for both the firm and the copyright owners involved.

    The attorneys involved are reportedly relying on technology provided by Guardaley IT that claims to enable real-time monitoring of movie downloads on torrents. The IP addresses and information gathered using this technology are then used to file “John Doe” lawsuits and issue subpoenas to ISPs seeking the names and addresses of subscribers associated with those IP addresses. Settlement demands are then sent.

    This is not the first time we’ve seen mass litigation (a.k.a. “spam-igation”) used as a profit-center—DirecTV pioneered that tactic by sending demand letters to more than 170,000 Americans accused of satellite piracy. And the major record labels followed up by targeting more than 30,000 people for legal actions between 2003-08.

    If this story is correct, it’s the latest evidence that copyright law has become unmoored from its foundations. Copyright should help creators get adequately compensated for their efforts. Copyright should not line the pockets of copyright trolls intent on shaking down individuals for fast settlements a thousand at a time.

  • Book Review: Property Outlaws

    Property OutlawsI’ve just recently finished reading Property Outlaws: How Squatters, Pirates and Protesters Improve the Law of Ownership, by Eduardo Moisés Peñalver and Sonia Katyal. Written by two legal scholars, one an expert in real property law, the other in intellectual property law, the book is a thoughtful rebuttal to the notion that property is absolute and trespassers are always “thieves.”

    The book starts with a hypothetical question:

    Imagine that scientists invented a machine capable of costlessly detecting every crime, no matter how trivial, and identifying its perpetrator…. Let us assume that our hypothetical law-enforcement machine is only capable of detecting violations of property rights. The question we hope to address at length in this book is whether it would be wise for a government to purchase it and turn it on.

    The authors then go on to remind us of the many ways that property disobedience can actually be healthy for the development of property law, reviewing historical examples. It’s in the telling of these historical examples that the book really comes to life.

    For example, the book describes the squatter’s movement in the American West during the 19th century (Chapter 3), the civil rights “sit-ins” at segregated lunch counters (Chapter 4), the resistance to patents on HIV/AIDS treatments in South Africa in the late 1990s (Chapter 6), and the online copyright disobedience that sprang up when Diebold Election Systems tried to suppress leaked internal documents (Chapter 7).

    The authors argue that a “leaky” property system is a healthy property system in the long run, both for real property and intellectual property. Here’s the basic pitch, boiled down and expressed in the language of the legal academy:

    When property disobedience overcomes a market failure and transfers property entitlements to those who value it more highly, it generates redistributive value. And when property disobedience produces information that is valuable to economic and political actors, it generates informational value. Even some self-interested acquisitive free riding can serve as a valuable tool for producing both of these sorts of value.

    Next on my reading list is Adrian Johns’ Piracy: The Intellectual Property Wars from Gutenberg to Gates, a magnum opus history of the concept of intellectual property piracy.

  • Viacom Makes Its Case Against Yesterday’s YouTube

    Today, after three years of litigation, the Viacom v. YouTube combatants finally publicly released their briefs (Viacom’s; YouTube’s; Class Action Plaintiffs’) in what most expect to be the main event in the case, namely, cross-motions for summary judgment (for the non-lawyers: a summary judgment motion asks the court to rule that the case is such a slam dunk in your favor that no trial is necessary).

    One surprise from Viacom is a concession that it basically has no beef with YouTube as it has been run since May 2008: “[W]e do not ask the Court to address potential liability for post-May 2008 infringement in this motion and, if Viacom’s summary judgment motion is granted, do not intend to do so at trial.” What happened in May 2008? That would be when YouTube launched its Content ID system, enabling copyright owners to “claim” their content and decide whether it will be blocked or monetized on YouTube.

    In other words, this case isn’t really about YouTube (at least YouTube circa 2010). It’s about Viacom’s effort to get the court to re-write the DMCA safe harbors to require everyone else to implement (and pay for) copyright filtering. If Viacom succeeds, it would radically change the innovation environment for all Internet companies that depend on the DMCA safe harbors.

    Why are the DMCA safe harbors so important? YouTube says it best:

    Congress laid the legal foundation for the modern Internet era when it enacted the DMCA in 1998, protecting online services from liability for copyright infringement claims based on their users’ actions. Congress recognized that robust online communications would be chilled if service providers faced unlimited damages claims based on material that their users posted or transmitted. The DMCA thus created a set of “safe harbors” immunizing service providers who respond properly to copyright holders’ notifications of alleged infringement. That policy choice enabled the evolution of a new generation of websites devoted to user­ generated content, letting individuals the world over express themselves and form new communities through blog posts, social networks, photography, and video.

    YouTube points out that it follows all the requirements of the DMCA safe harbor for “hosting” providers—it has a Copyright Agent, it terminates repeat infringers, and it responds to DMCA takedown notices, among other things. (Several rulings have previously confirmed that video hosting sites like YouTube can qualify for the safe harbors.)

    Rather than focusing on any of these points, Viacom instead launches a broad attack on the applicability of the safe harbors to any secondary liability claims (contributory infringement, inducement, or vicarious liability):

    “Thus, the preconditions of the DMCA immunity reflect and largely track traditional liability standards. If Defendants are liable for infringement under these long established standards, they thereby also lose resort to the DMCA.”

    The trouble with that argument is that it’s precisely the opposite of what Congress said it meant to accomplish:

    “The [DMCA safe harbors] protect qualifying service providers from liability for all monetary relief for direct, vicarious and contributory infringement.”

    (Conference Committee Report, H. Rep. 105-796 at page 73, the very last word from Congress on what they meant to be doing with the statutory language that became law.)

    So what Viacom is asking for here is a radical re-write of the DMCA that, if accepted, would put all kinds of online service providers at risk of huge statutory damages for copyright infringement. Is eBay used to commit copyright infringement every day by some users? Sure. Do people use Microsoft’s Bing to find infringing materials? Check. Do online lockering services get used to store infringing materials? Do users send infringing email attachments? How about the “send file” features of every instant messaging system? The only reason these (and many other) online services exist is because the DMCA safe harbors give them rules to follow that are much clearer than the murky standards for “secondary liability.” If Viacom is right, then there are no clear rules to follow, except “beg permission from every copyright owner first.” And that’s a rule that would hobble innovation and competition online.

    Fortunately, most of Viacom’s arguments are simply a rehash of arguments that have already been rejected by other courts. Here’s hoping that this court is not fooled.

  • UPDATED: All Your Apps Are Belong to Apple: The iPhone Developer Program License Agreement

    The entire family of devices built on the iPhone OS (iPhone, iPod Touch, iPad) have been designed to run only software that is approved by Apple—a major shift from the norms of the personal computer market. Software developers who want Apple’s approval must first agree to the iPhone Developer Program License Agreement.

    So today we’re posting the “iPhone Developer Program License Agreement“—the contract that every developer who writes software for the iTunes App Store must “sign.” Though more than 100,000 app developers have clicked “I agree,” public copies of the agreement are scarce, perhaps thanks to the prohibition on making any “public statements regarding this Agreement, its terms and conditions, or the relationship of the parties without Apple’s express prior written approval.” But when we saw the NASA App for iPhone, we used the Freedom of Information Act (FOIA) to ask NASA for a copy, so that the general public could see what rules controlled the technology they could use with their phones. NASA responded with the Rev. 3-17-09 version of the agreement.

    UPDATED: we are now also posting the most recent version of the agreement, dated January 2010.

    This “license agreement” is particularly relevant right now, given the imminent launch of the iPad and anytime-now issuance of the U.S. Copyright Office’s ruling regarding jailbreaking of the iPhone.

    So what’s in the Agreement? Here are a few troubling highlights:

    Ban on Public Statements: As mentioned above, Section 10.4 prohibits developers, including government agencies such as NASA, from making any “public statements” about the terms of the Agreement. This is particularly strange, since the Agreement itself is not “Apple Confidential Information” as defined in Section 10.1. So the terms are not confidential, but developers are contractually forbidden from speaking “publicly” about them.

    App Store Only: Section 7.2 makes it clear that any applications developed using Apple’s SDK may only be publicly distributed through the App Store, and that Apple can reject an app for any reason, even if it meets all the formal requirements disclosed by Apple. So if you use the SDK and your app is rejected by Apple, you’re prohibited from distributing it through competing app stores like Cydia or Rock Your Phone.

    Ban on Reverse Engineering: Section 2.6 prohibits any reverse engineering (including the kinds of reverse engineering for interoperability that courts have recognized as a fair use under copyright law), as well as anything that would “enable others” to reverse engineer, the SDK or iPhone OS.

    No Tinkering with Any Apple Products: Section 3.2(e) is the “ban on jailbreaking” provision that received some attention when it was introduced last year. Surprisingly, however, it appears to prohibit developers from tinkering with any Apple software or technology, not just the iPhone, or “enabling others to do so.” For example, this could mean that iPhone app developers are forbidden from making iPods interoperate with open source software, for example.

    You will not, through use of the Apple Software, services or otherwise create any Application or other program that would disable, hack, or otherwise interfere with the Security Solution, or any security, digital signing, digital rights management, verification or authentication mechanisms implemented in or by the iPhone operating system software, iPod Touch operating system software, this Apple Software, any services or other Apple software or technology, or enable others to do so

    Kill Your App Any Time: Section 8 makes it clear that Apple can “revoke the digital certificate of any of Your Applications at any time.” Steve Jobs has confirmed that Apple can remotely disable apps, even after they have been installed by users. This contract provision would appear to allow that.

    We Never Owe You More than Fifty Bucks: Section 14 states that, no matter what, Apple will never be liable to any developer for more than $50 in damages. That’s pretty remarkable, considering that Apple holds a developer’s reputational and commercial value in its hands—it’s not as though the developer can reach its existing customers anywhere else. So if Apple botches an update, accidentally kills your app, or leaks your entire customer list to a competitor, the Agreement tries to cap you at the cost of a nice dinner for one in Cupertino.

    Overall, the Agreement is a very one-sided contract, favoring Apple at every turn. That’s not unusual where end-user license agreements are concerned (and not all the terms may ultimately be enforceable), but it’s a bit of a surprise as applied to the more than 100,000 developers for the iPhone, including many large public companies. How can Apple get away with it? Because it is the sole gateway to the more than 40 million iPhones that have been sold. In other words, it’s only because Apple still “owns” the customer, long after each iPhone (and soon, iPad) is sold, that it is able to push these contractual terms on the entire universe of software developers for the platform.

    In short, no competition among app stores means no competition for the license terms that apply to iPhone developers.

    If Apple’s mobile devices are the future of computing, you can expect that future to be one with more limits on innovation and competition (or “generativity,” in the words of Prof. Jonathan Zittrain) than the PC era that came before. It’s frustrating to see Apple, the original pioneer in generative computing, putting shackles on the market it (for now) leads. If Apple wants to be a real leader, it should be fostering innovation and competition, rather than acting as a jealous and arbitrary feudal lord. Developers should demand better terms and customers who love their iPhones should back them.

  • Unintended Consequences: 12 Years Under the DMCA

    EFF today released Unintended Consequences: 12 Years Under the DMCA. This is the sixth update to the report, which aims to catalog all the reported instances where the DMCA’s ban on tampering with DRM have been abused to stymie fair use, free speech, and competition, rather than to attack “piracy.”

    Congress enacted the DMCA’s ban on bypassing DRM at the urging of entertainment industry lobbyists who argued that DRM backed by law would quell digital copyright infringement. Of course, 12 years later, that exactly hasn’t worked out. Nor is it likely to ever work out. But lots of industries have recognized that these provisions of the DMCA are good for other things—like impeding scientific research and legitimate competition. The Unintended Consequences report collects these stories, including oldies like Lexmark’s effort to block toner cartridge refilling and new cases like the lawsuit against RealDVD.

    Other new additions to the report include Apple’s use of the DMCA to lock iPhone owners to Apple’s own App Store for software, Apple’s DMCA threats against Bluwiki for hosting discussions about iPod interoperability, and Texas Instruments’ use of the DMCA to threaten calculator hobbyists trying to write their own operating systems.

    Although in many cases the DMCA abuser backs down or is beaten in court, the abuses and resulting chilling effect on legitimate activities continues. And even though the U.S. Copyright Office is considering proposed exemptions to the DMCA, that proceeding won’t prevent more abuses in the future.

  • YouTube’s Content ID (C)ensorship Problem Illustrated

    As we’ve pointed out repeatedly, poor design decisions in YouTube’s “Content ID” system have resulted in over-blocking of videos that remix copyrighted materials. Today we got perhaps the most vivid example of the problem: the “silencing” of a lecture by Prof. Larry Lessig about the cultural importance of remix creativity. This is just the latest of many examples. We’ve been on YouTube’s case for more than two years about this problem, and it’s high time for YouTube to fix the Content ID system to respect the kinds of fair uses that are at the heart of remix creativity.

    How did Prof. Lessig’s video trigger the Content ID block? He included “snippets” (I use that word intentionally, as Google does in the context of its own Book Search product, to refer to small portions that should qualify as a fair use) from several remix videos. As a result, the audio track of his lecture included excerpts of several well-known songs. Apparently at least one of those songs is owned by Warner Music, which has chosen to automatically mute the audio track of any video when the Content ID system detects the presence of those songs. It’s not clear which song triggered the block—the Content ID system doesn’t tell you that.

    Of course, in close cases, reasonable minds can differ about whether a particular use of a song qualifies as a fair use (although some cases are easy). But that’s no excuse for the automated Content ID filter to block them—if a copyright owner has a good faith belief that any particular remix video crosses the line, it is free to send a formal DMCA takedown notice. Sending a notice is not hard, nor expensive, as demonstrated by the fact that copyright owners routinely send hundreds of thousands of these notices to YouTube. YouTube’s Content ID system even will flag all the videos for the copyright owner’s review.

    But unlike the automated Content ID blocking, DMCA takedown notices at least put a human into the loop, and these humans must take fair use into account before issuing the notice. In contrast, an automated match by the Content ID system results in an automated removal, even where the copyright owner does not object to the use (and, as poorly behaved as Warner Music has been in the past, I can’t imagine it really wants to censor Prof. Lessig’s lecture).

    Fortunately, YouTube permits users to “dispute” automated Content ID removals, and that’s why Prof. Lessig’s video is once again available. But that’s not nearly good enough. First of all, YouTube’s procedures for “removing” videos have created considerable confusion and consternation among users, and it’s a fair bet that most YouTube users aren’t aware of their ability to “dispute” these removals. Second, the thousands of lawsuits brought by record labels against individuals for file-sharing has created an atmosphere of fear that makes many YouTubers hesitant to go toe-to-toe with a major record label.

    There’s just no excuse for the Content ID system to be blocking remix videos. There’s nothing in the law that requires YouTube to do this. In fact, section 512(m)(1) of the DMCA makes it clear that service providers do not need to install filters or monitor their services at all, much less allow copyright owners to use filters to block remixes.

    Nor is there any engineering reason why the system should be designed this way. The filter can fix this problem by insisting that the audio and video tracks both come from the same copyrighted work and that the entire (or almost entire) video is drawn from the same copyrighted work. Unless these conditions are met, “block” should not be an option available to copyright owners. If a copyright owner wants to take down a remix video, they should have to follow the rules Congress established in the DMCA.

    This is exactly what EFF, joined by numerous other public interest groups, asked YouTube to do in 2007 in our Fair Use Principles for User Generated Content. It’s a shame that YouTube, a company that has become synonymous with remix creativity, can’t find the time to fix its own Content ID system to protect remixers from unnecessary censorship.

  • Practical Advice for Music Bloggers Worried About DMCA Takedown Censorship

    Let’s say you are a blogger who writes about music regularly and includes links to music in your posts. How do you avoid having your blog censored off the Internet by “DMCA takedown notices” sent out by music industry lawyers (as happened last week to several blogs hosted by Blogger)?

    Of course, you could get authorization from all the relevant copyright owners before you post or link to a song. Unfortunately, that’s virtually impossible for many music bloggers. In some cases, it may be impossible to figure out who the copyright owners are (consider the problem of live concert bootlegs, rare B-sides, out-of-print material, defunct labels). In other cases, you might have authorization from someone, but it could end up being the wrong person (i.e., an independent promoter or member of the band who doesn’t actually have all the rights to give you). And even if you get authorization from all the right people, you could still find yourself on the receiving end of a DMCA takedown from the entity that controls the copyright in another country (because your blog can be accessed from that country).

    In other words, it’s quite likely that many music bloggers can never be sure that a DMCA takedown notice won’t arrive someday.

    If one does arrive, your blog hosting service probably won’t take your side. The law gives online hosting services strong incentives to comply with takedown notices—prompt responses to takedown notices are often the only reliable shield that hosting services have against copyright infringement lawsuits and potentially hundreds of thousands of dollars of damages. No matter how much your hosting service values your business, it is not likely that they will be willing to bet their business to save your blog.

    While most hosting providers will let you send a “DMCA counter-notice” to contest a bogus takedown notice, sending a counter-notice can have serious consequences if you’re not absolutely sure that you had all the necessary legal rights to post the songs or links in question. Sending a DMCA counter-notice is serious business, as it leaves the copyright owner with few options (other than suing) in order to keep the song down. So we recommend that bloggers research copyright law and, if in doubt, consult a qualified attorney (or contact EFF) before sending DMCA counter-notices.

    The DMCA also gives hosting services strong incentives to “terminate repeat infringers.” That’s why most blog hosting services will delete your account (and thus your entire blog) after receiving multiple DMCA takedown notices. The industry norm seems to be a “3 strikes” policy, although the number of “strikes” can vary. This policy can be particularly unfair when a copyright owner sends multiple DMCA takedown notices all at once, or within a few days of each other — you can find your blog deleted before you even find out who was complaining or can send a DMCA counter-notice. Many hosting providers also mark every DMCA takedown notice on your “permanent record” — simply deleting the file or the link won’t expunge the “strike” on your account (generally, only a DMCA counter-notice will do that). So a DMCA takedown notice received for your blog might still count as a “strike” years later (again, this is because service providers want to be able to tell a court that they were good about “terminating repeat infringers,” lest they lose their shield against copyright infringement lawsuits).

    Of course, you may be able to talk the copyright owner into withdrawing a DMCA notice (“your marketing department sent me an email saying this link was legit”). And there may be informal strategies that work most of the time (like deleting links after a short period of time). However, at the end of the day, it’s nearly impossible to be sure you’ll never receive a DMCA takedown notice.

    With that in mind, here are a few practical things you can do to minimize the disruption that the DMCA process might inflict on your blog:

    • Get your own domain name: Most blogging platforms will allow you to use your own domain name for your blog, which will make it easier for your readers to find you if DMCA takedown notices force you to change hosting providers. So, for example, if your blog is at YOURNAME.blogspot.com, and your account gets terminated, you probably will never be able to use that URL again. In contrast, if your blog were at www.YOURNAME.com, you could get a new account from another hosting provider and keep your URL the same. And don’t register your domain through the same company that hosts your blog—that should reduce the risk that you’ll find both your blog and your domain name deleted by your hosting provider in response to DMCA takedown notices.
    • Back up your blog, be ready to move it: Make sure that whatever blogging platform you use, it allows you to easily back up your entire blog in a format that makes it easy to republish elsewhere. Have a game plan ready for migrating your blog to a new hosting service quickly if that becomes necessary.
    • Make sure your hosting provider can reach you: If a copyright owner wants to send a DMCA takedown notice aimed at your blog, they will probably start by doing a reverse DNS look-up to figure out who is hosting it. So make sure that entity (whether it’s a full-service blog hosting service like Blogger or a colo hosting your own server) knows how to reach you. Keep your email address up to date, be sure that messages from your blog hosting service are “white-listed” in any spam filters that you use.
    • Choose a service that has clear DMCA policies: Not all hosting providers accept DMCA counter-notices—make sure yours does, just in case you need to use it. Ask your hosting provider how many “strikes” it takes before your account is terminated. Ask whether “strikes” drop off your account after a period of time. Generally, you’re better off with a hosting provider that has thought about these questions and implemented clear policies.
    • Study up a bit: A little studying up before hand can go a long way towards avoiding problem later. A good place to start is EFF’s Legal Guide to Bloggers, which contains frequently asked questions about copyright, the DMCA process, and a host of other legal issues that bloggers might face. The Citizens Media Law Project at Harvard also has a great legal guide online.
  • Google Book Search Settlement: Updating the Numbers, Part 2

    In our last post, we set out some of Google’s numbers for the total number of books that would fall under the amended settlement agreement. Now let’s look at how many and what sorts of rightsholders have come forward as a result of the oft-criticized notice program conducted by Google and the plaintiffs. For starters:

    Number of Books Google Says are Subject to the Settlement: About 10 million

    According to Rust Consulting, the company administering the notice program, 44,450 claim forms (both online and hardcopy) have been received as of February 8, plus 485 “lists” (a kind of modified claim request). The claims relate to approximately 1.13 million books and 21,829 “inserts” (i.e., things like a short story or article in an anthology). Of the 1,107,620 books claimed online, 619,531 are classified by Google as out-of-print and 488,089 are classified as in-print.

    Total number of claimants: 44,450

    Total books claimed: 1,125,339

    Total inserts claimed: 21,829

    Percentage of books claimed (online only) that Google classifies as out of print: 56%

    So, of the 10 million books potentially covered by the amended settlement on Google’s numbers, rightsholders have spoken up for a little more than 10%. Because there may be disagreements between the author and the publisher about who owns the rights, it is possible that some of these claims are actually competing claims for the same book.

    Percentage of books claimed on Google’s numbers: about 10%

    As of the January 28 deadline for opting out, Rust reports receiving 6,818 requests for “exclusion” (which Rust uses here to mean simply “opting out of the settlement”). Adding that number to the 44,450 claiming responses makes a total of a little over 50,000 rightsholder responses, with about 87% choosing to participate in some form in the settlement and 13% opting out altogether. Keep in mind that those who objected to the settlement—and there were over 500 objections filed—had to stay in the settlement in order to object, so the 87% number shouldn’t be read as consisting only of those who favor the settlement.

    Percentage of responding rightsholders who have opted out: 13%

    Percentage of responding rightsholders who have chosen to participate in some form: 87%

    The “Exhibit D” document of Rust Consulting’s submission, consisting of four tables, was initially unhelpful and unenlightening, because none of the columns seemed to be properly labeled. However, upon EFF’s request, Google promptly had Rust provide a clearer document, which has the missing information (Google says that the prior problem was due to scanning and that the document has not changed). Google confirmed one error in the first table: the correct number of online publisher claims should be 4,312 and 880 for agent claims.

    The publisher claims account for 787,942 out of the 1,107,620 books claimed, or 71%, with an average of 895 books per claiming account. It is interesting that a relatively small number of publishers accounted for the bulk of the claimed works.

    Percentage of books claimed by publishers: 71%

    Percentage of books claimed by authors: 29%

    At the fairness hearing, the lawyer for the Science Fiction Writers group raised concerns that publishers are claiming works that are out-of-print, which is problematic since in many instances those rights should have reverted to the authors. The attorney noted that the Google Books settlement appeared to be creating an opportunity for publishers to try to claim ongoing rights, and corresponding income, from works that they had abandoned and to which they may not have current contractual rights. This is one of many criticisms raised by author groups as well as the Department of Justice at the fairness hearing — that the settlement rides roughshod over the contractual relationships between authors and publishers.

    These numbers help clarify the picture, at least a bit. We hope Google, the plaintiffs, and Rust Consulting will provide even more numbers moving forward so that the public can continue to assess the settlement even as the Court deliberates.

  • Google Book Search Settlement: Updating the Numbers, Part 1

    In the wake of yesterday’s fairness hearing on the Google Book Search settlement, this might be a good time, while Judge Chin is deliberating, to take a moment to update some of the numbers about the settlement. These numbers were culled from settlement documents (thanks to Prof. James Grimmelmann for much of that), Google’s presentation at the fairness hearing, and congressional testimony.

    [Note: these are Google’s numbers and it wouldn’t be surprising if others disputed them.]

    First, how many books are there? Overall, Google engineer Dan Clancy said that Google’s research indicates that there were over 174 million books total worldwide in bibliographic records.

    Total number of books in bibliographic records in the world = 174m.

    At the fairness hearing, however, Google’s lawyer Daralyn Durie told the Court that there are approximately 42 million books total in the collections of libraries partnered in Google’s digitization project.

    Total number of books held by Google partner libraries = 42m.

    How many of these fall under the terms of the settlement, which is limited to in-copyright books published in the U.S., Canada, U.K., Australia, and New Zealand? After subtracting public domain works (estimated at 20% by Google), excluding foreign works, and accounting for duplicate works, Google estimates that 10 million books are subject to the terms of the amended settlement.

    Total number of books subject to the amended settlement = 10m.

    Of this number, Google believes that half (~5 million) are in-print and half (~5 million) are out-of-print. In earlier Congressional testimony, Google estimated that no more than 20% (or ~1 million) of the out-of-print works would turn out to be true “orphan works” (i.e., works whose copyright owners could not be found).

    Google’s Dan Clancy estimates that Google has scanned 12 million books so far, which includes 2 million scanned through its Partner Program, another 2 million public domain works, and foreign works that are outside the amended settlement.

    Some other numbers to keep in mind while pondering all of this: the Authors Guild claims a membership of over 8,500 and the Association of American Publishers claims to represent over 300 publishers, while 30,000 authors and publishers have already struck deals to be in Google Books through Google’s Publisher Partner Program.

  • Redbox, Movie Studios, and Subversion of First Sale

    As we’ve explained before, a number of Hollywood movie studios have been on the war path against Redbox, the kiosk-based DVD rental operation, because Redbox offers DVD new releases for rent at 99 cents per night. Thanks to the first sale doctrine in copyright law, Redbox’s business is completely legal—the company buys legitimate DVDs to stock their kiosks. Great for consumers, and a great alternative for those who might otherwise opt for an unauthorized alternative online.

    But Hollywood wasn’t pleased, and took a number of steps to interfere with Redbox’s business, which in turn led to lawsuits. Earlier this week, Redbox and Warner Brothers settled their litigation, with Redbox promising not to offer Warner DVDs until 28 days after the DVD goes on sale. In other words, no more Warner new releases in the Redbox kiosks. Analysts predict this will be a blueprint for similar settlements with other Hollywood studios.

    The Media Wonk has published a great recap of what happened, detailing how the movie studios put pressure on distributors and retailers and ultimately succeeded in subverting the first sale doctrine:

    I’m assuming the studios’ were well-advised in their campaign against Redbox, and managed to strong-arm the wholesalers and big-box retailers without actually violating antitrust laws. But it’s still worth noting, I think, the extraordinary lengths to which they were willing to go to thwart the plain language and intent of an inconvenient portion of copyright law.

    The First Sale Doctrine was promulgated–first by courts and later by Congress–precisely to deny publishers control over the secondary market in copies of works. It evolved to ensure that the practical application of the copyright statute would not be inconsistent with the Constitutional purpose of copyright itself: “To promote the progress of science and useful arts.” It does that by encouraging a robust and innovative market in copies, including a robust secondary market.

    Through their many Redbox machinations, the studios have found a way around the plain purpose of the First Sale Doctrine by effectively (if not quite illegally) fixing the price of DVDs in the secondary market.

  • You Bought It, You Own It: Vernor v. Autodesk

    You bought it, you own it.

    That’s a concept we’ve been fighting to defend for years against erosion at the hands of patent and copyright owners, in contexts as diverse as printer cartridges, promo CDs, and software. The answer should be simple—if you bought it, a copyright or patent owner shouldn’t be able to use federal intellectual property law to dictate whether you can resell it, simply by pointing to boilerplate in a license agreement or label. That’s thanks to the “first sale doctrine” (also known as “exhaustion”).

    Today EFF, joined by national library associations, the Consumer Federation of America, Public Knowledge, and U.S. PIRG, filed an amicus brief in Vernor v. Autodesk, the latest battle to raise the question of whether the “first sale doctrine” will continue to have vitality in a world filled with end-user license agreements that claim that you own nothing, but rather merely “license” it. The appeal pits eBay seller Timothy Vernor against software giant Autodesk. When Mr. Vernor tried to auction four authentic, packaged copies of AutoCAD software, Autodesk sent DMCA takedown notices to block his auctions and threatened to sue him for copyright infringement. Mr. Vernor, assisted by the lawyers at Public Citizen, took Autodesk to court and won.

    Autodesk has appealed, arguing that so long as its license agreements recite the right magic words, it can strip purchasers of any ownership in the CD-ROMs on which software is delivered. If that’s right, then not only don’t you own the software you buy, but any copyright owner can simply recite the magic words and effectively outlaw libraries, used bookstores, and DVD rentals, among other things (eBay also filed an amicus brief on behalf of Mr. Vernor). That would be bad news not just for consumers looking to save a few dollars, but also for our ability to access older, out-of-print materials. For these materials, often libraries and second-hand sellers are the only hope for continued public access.

    This appeal is one of three pending before the Ninth Circuit that touch on “you bought it, you own it” issues. Along with EFF’s pending petition with the Copyright Office to permit iPhone jailbreaking (which also turns on what rights you have as a software owner), these three cases promise to have a substantial impact on the shape of the “first sale doctrine” in the digital age.

  • Free Press Blogs on FCC’s Net Neutrality Plans

    Chris Riley, Policy Counsel for Free Press (and former EFF legal intern), has worked up an illuminating multi-part series of blog posts explaining some of the key issues that have been raised in the FCC’s net neutrality proceedings (EFF’s comments to the FCC echo many of the points discussed).

    If you don’t have time to dig through the huge volume of submissions piling up on the FCC’s servers, his blog posts are a good place to start:

  • MPAA and RIAA Seek Net Neutrality Copyright Loophole

    Last week the MPAA and RIAA submitted their comments in the FCC’s net neutrality proceeding. As anticipated in EFF’s comments, the big media companies are pushing for a copyright loophole to net neutrality. They want to be able to pressure ISPs to block, interfere with, or otherwise discriminate against your perfectly lawful activities in the course of implementing online copyright enforcement measures.

    Of course, the MPAA and RIAA couch this in language intended to sound inoffensive. The RIAA says “the perfect should not be the enemy of the good” and “justice often takes too long.” The MPAA chimes in that “it is essential that government policies explicitly permit—and encourage—ISPs to work with content creators to utilize the best available tools and technologies to combat online content theft.”

    But here’s how it would work in practice. The proposed FCC net neutrality principles include a loophole for “reasonable network management,” which is defined to include “reasonable practices employed by a provider of broadband Internet access service to…(iii) prevent the transfer of unlawful content; or (iv) prevent the unlawful transfer of content.” That means that so long as your ISP claims that it’s trying to prevent copyright infringement, it’s exempted from the net neutrality principles and can interfere with your ability to access lawful content, use lawful devices, run lawful applications, or access lawful services.

    This is not about protecting copyright infringers—the FCC’s proposed net neutrality principles expressly do not apply to unlawful content or unlawful transmissions. So you don’t need a “reasonable network management” loophole to go after illegal conduct. The loophole that the RIAA and MPAA are after is about giving the green light to overbroad copyright enforcement measures that inflict collateral damage on innocent conduct.

    The proposed copyright loophole is reminiscent of the RIAA’s response when asked about innocent people mistakenly sued for file sharing: “When you go fishing with a driftnet, sometimes you catch a dolphin.” Unlike the MPAA and RIAA, EFF doesn’t think that ISPs should get a free pass for sideswiping innocent activities if they implement shoddy copyright enforcement systems. And neither do Public Knowledge, the Consumer Electronics Association, CCIA, NetCoalition, or the Home Recording Rights Coalition.

    Allowing ISPs to jeopardize perfectly legal activities in the name of “copyright enforcement” is a bad idea. Let the FCC know that you oppose any copyright loophole that would allow the RIAA and MPAA to pressure ISPs into catching your “dolphins” in their poorly designed fishing nets.

  • EFF Weighs in on Proposed FCC Net Neutrality Rules

    Today marks the deadline for the first round of comments to the FCC regarding its proposed “net neutrality” regulations. Here’s a quick summary of what EFF had to say in its comments to the Commission:

    While the question of how to best protect the openness of the Internet is a timely and important one, EFF believes the FCC currently lacks the statutory authority to issue the broad regulations on ISPs that it has proposed. The “ancillary jurisdiction” that the FCC has asserted as a basis for the regulations is legally insufficient and would, if accepted, give the FCC potentially unbounded power to regulate the Internet however it likes. In other words, if the FCC wants to issue net neutrality regulations, it needs to wait until Congress passes a net neutrality bill.

    If the Commission nevertheless chooses to forge ahead with the regulations proposed, EFF urges it to make the following revisions designed to protect the free speech and privacy interests of Internet users, and to foster competition and innovation.

    First, in order to protect the free speech interests of Internet users, the Commission should reject copyright enforcement as “reasonable network management.” Copyright enforcement has nothing to do with the technical business of network management. Moreover, the proposed regulations, by their terms, already exclude “unlawful content,” making any exception for copyright enforcement unnecessary. Should ISPs want to deploy copyright enforcement technologies that inflict collateral damage on lawful content, those ISPs should be required to submit any such technologies to the Commission for pre-deployment review as part of a transparent public waiver process.

    Second, in order to protect the privacy interests of Internet users, the Commission should clarify that the law enforcement exception applies only to an ISP’s legal obligations to address the needs of law enforcement. Because the six proposed neutrality principles do not, by their terms, apply to unlawful content or activities, a general exception for law enforcement is unnecessary. Should ISPs want to voluntarily deploy technologies that would block lawful activity in the course of addressing the needs of law enforcement, those ISPs should be required to submit any such technologies to the Commission for pre-deployment review as part of a transparent, public waiver process.

    Third, in order to protect the privacy interests of Internet users, the Commission should make it clear that its proposed regulations do not reach noncommercial providers of broadband Internet access service, whether they are individuals who operate open Wi-Fi networks at home, or public-minded entities that provide free Internet access in their local communities. The Commission should avoid the specter of federal regulation looming over noncommercial, public-spirited network providers. Federal regulation of these initiatives is not necessary to vindicate the openness, competition, innovation, and free expression goals of this proceeding.

    Fourth, in order to foster competition and innovation, EFF urges the Commission to make it clear that the proposed “transparency” principle is not subject to an exception for “reasonable network management.” As exemplified by the Commission’s ruling against Comcast regarding its discriminatory treatment of BitTorrent traffic, it is precisely when ISPs invoke the need for “reasonable network management” that the principle of transparency becomes most vital. Only if ISPs are required to adequately disclose their network management practices will consumers, competitors, innovators, and the Commission be able to evaluate whether the practices are, in fact, “reasonable.”

    Fifth, in order to foster competition and innovation, the Commission should require wireless ISPs to allow “tethering” as a form of device interconnection. This requirement is a necessary corollary to the principle that consumers should be entitled to use any lawful device or application that does not harm the network. Tethering facilitates interoperability, competition, and openness. Furthermore, tethering blocks some troubling practices that are already emerging in the marketplace.

  • EMI Attacks NirGaga Mashup

    EMI, the smallest of the four major record labels, has sent a cease & desist letter to DJ Lobsterdust and Bootie SF regarding “NirGaga,” a mashup combining Nirvana’s “Smells Like Teen Spirit” and Lady Gaga’s “Poker Face.” The song had appeared in Bootie SF’s “best of 2009” compilation (and got a thumbs up from the Wall Street Journal’s Speakeasy blog), but now has been removed. For now, you can still find it online, so you can listen and reach your own fair use conclusions. The song is obviously transformative, and it’s hard to imagine it as a substitute for the originals.

    As far as we’ve been able to tell, mashups rarely draw the attention of record label lawyers. Of course, EMI was involved in efforts to block the viral distribution of Dangermouse’s now legendary Grey Album. And EMI used the DMCA in 2008 to censor video mashups commenting on the lawsuit between Joe Satriani and Coldplay. But bringing the lawyers to bear against garden-variety mashups is something else again. Is this the beginning of a general crackdown on mashups by EMI, or, we hope, just a misguided one-off?

  • Most Pirated Movie of 2009 … Makes Heaps of Money

    According to TorrentFreak, last summer’s Star Trek movie was the “most pirated movie of 2009.” So it seems that Paramount Pictures was prescient when it gave testimony before the FCC that used Star Trek as an illustrative example of how “Internet piracy” is poised to devastate Hollywood and (though the nexus here is less than clear) undermine residential broadband in America.

    Funny thing is, Star Trek is on course to make more than $100 million in profits.

    Here’s the financial breakdown, courtesy of The Numbers.com, which gathers financial data for movie industry analysts:

    Production costs: $140m
    Promotion costs: ~$100m
    Global box office revenues: $385m
    U.S. TV syndication rights: $30m
    DVD & Bluray revenues (anticipated, based on sales and rentals since Nov. 2009): >$100m

    Based on these figures, film industry analyst Bruce Nash at The Numbers predicts a net profit to Paramount of more than $100m on the movie. Not bad for the “most pirated movie of 2009,” which was camcorded and widely released on the Internet within days of theatrical release.

    This is just one data point suggesting that Hollywood’s hue and cry about “Internet piracy” should be taken with a grain of salt. Other data points include Hollywood’s record breaking box office results for 2009 (in the midst of a recession!). And the fact that twice as many movies were released in 2009, as compared to 2004. (There is also far more new music being released today than 10 years ago, thanks to new digital technologies.)

    The goal of copyright is to encourage creativity. As 2009 comes to a close, there is no evidence out there that “Internet piracy” is leaving us with fewer creators or fewer copyrighted works, even if you limit yourself to considering works being created by “professionals” employed by movie studios. And once you factor in all the new, noncommercial or semi-pro creators who have been empowered by the very same Internet technologies that Hollywood is blaming for “piracy,” well, it seems clear that creativity is alive and well, and that Hollywood’s demands for drastic overhauls of copyright law and broadband policy are disconnected from reality.

    And, importantly, some of what Hollywood calls “piracy” is actually the result of its stubborn refusal to give legitimate customers what they want, whether it’s home media servers for their DVDs, the right to rip DVDs to make noncommercial remixes, or new options to rent DVDs. (Or new video-on-demand offerings unless the FCC first approves “selectable output control” DRM restrictions for our TVs.)

    Yes, there are lots of unauthorized copies being made out there. But despite what Hollywood’s spokesmen would have us believe, the sky is not falling. In fact, as we ring in 2010, many industries would happily trade places with the major Hollywood movie studios.

  • Doctorow, How to Destroy the Book

    Cory Doctorow, my former EFF colleague, now novelist and all-around-inspiration, gave a stirring speech entitled “How to Destroy the Book” in November at a Canadian conference dedicated to literacy. Fittingly, it was spontaneously transcribed and posted online at The Varsity.ca. The whole thing is terrific, but the first portion, an elegy to books and what they mean to us, is stirring and highly recommended to anyone who loves books:

    When I buy an audiobook on CD, it’s mine. The license agreement, such as it is, is “don’t violate copyright law,” and I can rip that CD to mp3, I can load it to my iPod or any number of devises—it’s mine; I can give it away, I can sell it; it’s mine. But when you buy an audiobook through Audible, which now controls 90 per cent of the [downloadable] audiobook market, you get a license agreement, not a property interest. The things that you can do with it are limited by DRM; the players you can play it on are limited by the license agreements with Audible. Audible doesn’t do this because the publishers ask them to. Audible and iTunes, because Audible is the sole supplier to iTunes, do this because it’s in their own interest….

    Anyone who claims that readers can’t and won’t and shouldn’t own their books are bent on the destruction of the book, the destruction of publishing, and the destruction of authorship itself. We must stop them from being allowed to do it. The library of tomorrow should be better than the library of today. The ability to loan our books to more than one person at once is a feature, not a bug. We all know this. It’s time we stop pretending that the pirates of copyright are right. These people were readers before they were publishers before they were writers before they worked in the legal department before they were agents before they were salespeople and marketers. We are the people of the book, and we need to start acting like it.

    As it happens, the battle over whether you “own” digital goods (like e-books, CDs, and software) or merely “license” them will be a hot issue in court in 2010, with EFF deeply involved in the fight.

  • Latest Bogus DMCA Takedown Award Winner: Yahoo!

    “Yahoo isn’t happy that a detailed menu of the spying services it provides law enforcement agencies has leaked onto the web.” That’s how WIRED’s Threat Level blog put it when describing Yahoo’s recent effort to censor its own law enforcement compliance guide off the Internet using a bogus DMCA takedown demand.

    The trouble all started when Yahoo stepped in to block a FOIA request for its law enforcement compliance “price list” (i.e., what it charges to law enforcement and spy agencies when responding to requests for information about Yahoo users). Shortly thereafter, a copy of the document, entitled “Yahoo! Compliance Guide for Law Enforcement,” appeared on Cryptome.org.

    Here’s where the bogosity begins in earnest. Yahoo sent a formal DMCA takedown notice to Cryptome.org, demanding the removal of the compliance manual. In the letter, Yahoo’s lawyers allege that posting the manual infringes Yahoo’s copyrights (the only proper basis for a DMCA takedown), as well as claiming that it’s a trade secret (absurd for a marketing document) and that posting it constitutes “business interference” (huh? informing customers about Yahoo’s disclosure practices “interferes” with business?).

    This should earn Yahoo a place in the Takedown Hall of Shame (we’ll be updating our list of inductees soon). Posting the compliance manual is a clear fair use. Consider the “four factors” that courts examine in fair use cases: (1) publication is clearly for a transformative purpose (criticism, public debate); (2) publication does not harm the “market” for the original (since Yahoo doesn’t sell copies of the manual); (3) the nature of the publication is factual, not highly creative; and (4) while the whole manual was published, that was necessary for the transformative purpose. And, perhaps most important, a federal court has already ruled in favor of fair use on nearly these same facts, when Diebold Election Systems was sued for trying to censor embarrassing internal documents off the Internet using bogus DMCA takedowns.

    This brings up another important point: the DMCA does not require service providers to comply with bogus takedown notices. The DMCA offers a “safe harbor” from money damages for copyright infringement, but you only need a “safe harbor” if the activity in question might be infringing in the first place. Where (as here) the activity is clearly not infringing, a service provider doesn’t need the DMCA for protection, and can just deposit takedown notices in the trash (as YouTube did a few months ago in the face of another obviously bogus takedown notice).

  • Google Books Settlement 2.0: Evaluating Censorship

    This is the fifth in a series of posts about the proposed Google Book Search settlement.

    As we’ve explained in earlier posts, when it comes to evaluating the proposed Google Books settlement, the principal potential benefit to the public (increased access to books online) must be weighed against the potential drawbacks (impediments to competition, inadequate protection for privacy). Another potential downside for the public in the proposed settlement is the risk of censorship.

    To understand the importance of this risk, keep two things in mind. First, while bookstores are entitled to pick and choose their inventory, Google Books hopes to be much more than a simple bookstore. In the words of Google’s CEO Eric Schmidt: “Imagine one giant electronic card catalog that makes all the world’s books discoverable with just a few keystrokes by anyone, anywhere, anytime.” In other words, Google Books will have many characteristics that we associate more with the research libraries from which its books are drawn than with traditional bookstores. Second, as Prof. Geoffrey Nunberg reminds us: “This is almost certainly the Last Library, after all. There’s no Moore’s Law for capture, and nobody is ever going to scan most of these books again.”

    If Google’s scans under the proposed settlement are likely to be the only chance millions of books will have for a digital life, then the potential for censorship is something to be taken very seriously indeed. If the books can’t be found by researchers, it will be as though they were cast down the Memory Hole.

    Censorship by Rightsholders

    The biggest censorship risk created by the proposed settlement is from copyright owners. The proposed settlement gives rightsholders (until April 2011) the power to “Remove” their books from the Google Books corpus altogether. Once a book is removed, not only won’t you be able to read it online, you won’t even be able to find it using full-text search. In short, these books would simply cease to exist as far as users of Google Books are concerned, despite the fact that courts have ruled that indexing copyrighted works is a perfectly legal fair use. Moreover, even the libraries who contributed the book for scanning wouldn’t have a digital “backup” in their collections, as these removed books would also vanish from the digital copies that Google gives back to the research libraries (the “Library Digital Copies” and the “Research Corpus,” in the lingo of the settlement agreement).

    Why would a rightsholder want to self-censor? First, remember that the author of a book is often not the rightsholder. As a result, the copyright in a book can be purchased and then used to suppress further publication (a trick Howard Hughes tried). Moreover, sometimes the author or author’s heir (or corporate successor) wants to suppress a work (Prof. R. Anthony Reese describes a number of historical examples of post-publication suppression efforts by authors and rightsholders in this article).

    In the world of research libraries, of course, this kind of censorship is impossible—no research library would pull cards from the catalog and destroy copies of published works at the behest of those who own the copyright in those books. Yet this is exactly what the proposed settlement would permit for the “Last Library.” And most galling is that the settlement does not even require that a complete list of these “Removed” books ever be made publicly available (in Google’s web search, in contrast, Google includes entries for results that would have appeared, but for DMCA takedown demands, and makes those demands publicly available through Chilling Effects).

    At a minimum, books that are “removed” should remain in the database for full-text search, and Google should remain able to offer a “Library Link” (i.e., a link that directs a researcher to a library where the book can be found).

    Even more troubling is the possibility of selective alterations of the texts of the books themselves. In Section 3.10(c)(i), the settlement forbids Google “except as expressly authorized by the Registered Rightsholder” from altering the text of scanned books when displayed to users. That’s certainly a good thing, as far as it goes—we shouldn’t want Google to be able to go in and selectively edit books. But Google is allowed to selectively edit if “authorized” by the copyright owner. Why is this permitted? And if the rightsholder “authorizes” Google to make changes, can Google refuse to do so? Will the fact of alteration be publicly visible to the reader? The answer is not clear. But clearly the better rule is a prohibition on anyone making editorial alterations in the text of scanned books (again, no library would allow a copyright owner to selectively blackline books in the stacks). Any other option creates the chilling prospect of “revising history” as imagined in Orwell’s 1984.

    Censorship by Google

    The proposed settlement also gives Google a troubling degree of discretion when it comes to choosing which books will be publicly accessible. For example, Section 3.7(e) makes it clear that Google can exclude any scanned book it likes from public access “for editorial or non-editorial reasons.” If it excludes a book for “editorial reasons,” it must notify the Registry (but not the public), and the Registry may look for an alternative partner (“Third-Party Required Library Service Provider”) to host the book. There is nothing that requires the Registry to do so, nor any guarantee that such a partner will step forward.

    In addition, in order to meet its obligations under Section 7.2(e) of the proposed settlement, Google need only make 85% of the books it scans from its library partners publicly accessible through full-text search, consumer purchase, or the institutional subscription database. Assuming that Google has already scanned approximately 8 million books that are in-copyright, that means Google can make more than 1.2 million of these books disappear from its publicly accessible services for any reason and still meet its obligations under the settlement. And, again, nothing in the settlement requires Google to make the list of omitted books available to the public.

    Censorship by Government

    Finally, it’s worth noting that governments will doubtless exploit the leeway that the settlement gives to both rightsholders and Google to pull books off the digital shelves of Google Books. It’s all too easy to imagine foreign governments pressuring their citizens to “remove” books from public access on Google. It’s also likely that foreign governments will pressure Google to omit books from Google Books. If that comes to pass, neither Google nor the rightsholders will be able to say that they are legally constrained by the settlement from complying short of legal process. Had the settlement agreement been written to forbid this kind of censorship, both rightsholders and Google could have responded to censorship demands by saying “come back with a court order.”

    And, finally, remember that Google may, under the settlement, sell off the entire Google Books project. So even if you believe that Google would never cave to foreign governments or engage in selective censorship, keep in mind that 10 years from now, Google Books might be owned by an entirely different corporate master.