On Google Books Intermediaries & Pricing

[richards1000@comcast.net]

Colleagues:

In light of the interesting discussion of Google Books & privacy 
currently underway here, I'd be grateful for your thoughts on the 
following ideas (which are mine) about the proposed Google Books 
Settlement:

Respecting intermediaries and pricing for the for-fee, full-text 
version of Google Books that may emerge from the proposed Google 
Books Settlement: If the current version of the settlement 
agreement is approved by the court and becomes effective, then 
components of Google Books (GBS) will be unique goods in the 
market for a certain period of time, and that gives the rights 
owners/Book Rights Registry (BRR) a strong incentive to price 
above marginal cost respecting those components, during that 
time. Accordingly, I bet that many public libraries and some 
academic libraries will be unable to afford the paid full-text 
GBS subscription.

But I would think that the rights owners/BRR would also wish to 
negotiate deals with the Internet service providers, and cable, 
satellite, and mobile phone/device providers, so that access to 
the full text of GBS could be purchased as part of 
ISP/cable/sat/mobile offerings. Paid access through 
ISP/cable/sat/mobile providers should enable remote/mobile access 
to full text of GBS for public library or academic library users 
who are willing and able to pay for such access, and whose 
libraries don't subscribe to paid GBS. Libraries will continue to 
furnish access to print versions for those individuals whose 
library can't afford paid GBS, and who can't afford paid GBS via 
their ISP/cable/sat/mobile provider, or who prefer print for 
other reasons (higher resolution, access to pictures, etc.).

These developments don't seem unexpected: they seem consistent 
with the general trend toward disintermediation of the library, 
and of all information intermediaries, during the transition to a 
primarily digital information environment (as Joseph Esposito 
continually reminds us).

But I also understand that negotiations are currently underway 
among the parties to the proposed settlement agreement respecting 
possibly amending the agreement to give libraries some say in the 
pricing of the paid, full-text GBS subscription.  In addition, 
U.S. federal antitrust authorities (or a federal court) may 
require price regulation of paid GBS, or some components of it. 
If either process results in lower prices for the paid full-text 
GBS subscription, then more libraries will likely be able to 
afford that subscription, and will therefore probably remain, for 
some time to come, key intermediaries respecting many very 
important categories of ebooks.  Therefore I would think that the 
issue of GBS pricing, especially in the context of the parties' 
ongoing negotiations about a role for libraries, and the federal 
antitrust inquiries into the proposed settlement, particularly 
warrants the library community's attention.

Robert C. Richards, Jr., J.D.*, M.S.L.I.S., M.A.
Law Librarian & Legal Information Consultant
Philadelphia, PA
E-mail: richards1000@comcast.net
* Member New York bar, retired status.