June 15, 2009 1:37 PM PDT

Bezos: We've got issues with Google Book Search

by Caroline McCarthy
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NEW YORK--Amazon CEO Jeff Bezos was coy about exactly why he isn't thrilled with Google's attempt to forge its way into the digital publishing business.

"We have strong opinions about that issue which I'm not going to share," Bezos said to interviewer Steven Levy at the Wired Business Conference. "But, clearly, that settlement in our opinion needs to be revisited and it is being revisited."

In a court battle rife with twists, turns, and delays, Google has been attempting to push forward its Book Search initiative, which could potentially give the Mountain View, Calif., tech giant exclusive access to digital editions of some out-of-print books. That could, as Levy pointed out, get in the way of Amazon's goal of offering every book ever printed in every language on the Kindle and its new, bigger Kindle DX sibling. And it sounds like that's where Amazon has some beef.

"There are many forces of work looking at that and saying it doesn't seem right that you should do something, kind of get a prize for violating a large series of copyrights," Bezos said.

Bezos was speaking at the conference, which had the subtitle "Disruptive by Design," to talk about Amazon's legacy of shaking up the retail industry and now potentially the publishing industry with its Kindle e-reader device. Most of his talk was focused on the sort of business advice that one might expect a tech company to provide to a room full of big-business and old-media types ("be stubborn on the big things and very flexible on the details," "you have to be willing to be misunderstood for long periods of time"), but he did get a few minutes to talk about how he thinks the Kindle is changing things.

In New York, a longtime global hub of the beleaguered publishing, media, and advertising industries, what he had to say was particularly weighted. The Kindle, after all, is doing extremely well: Bezos said that out of the entire offering of 300,000 books available for both the Kindle and physical retail on Amazon, that the Kindle's sales are 35 percent of physical books' after only 18 months on the market.

"Internally, we are startled and astonished by that statistic," Bezos said.

But he wouldn't promise that the device will singlehandedly save the newspaper industry.

"I never want to convey that I think we have a sinecure with any particular product offering, but if we execute well and other companies that do these kinds of electronic readers, that is going to be part of what happens with newspapers," Bezos said. "And I do think there are going to be multiple companies competing with reading devices and I think there's room for multiple winners."

Like much of the speakers at the Wired Business Conference, Bezos talked extensively about how things have changed over the past few years, and how it demands a deep rethinking of business practices in all industries. In this case, he was talking about the media business.

"Unfortunately, there's a collision of several major issues happening to the magazine, newspaper, and publishing industries all at once, including most recently the recession which has taken a bad situation and made it much worse," he said. "But the biggest structural problem in my opinion is there's just so much supply of advertising space. That's a fundamental problem that's not going to go away."

But at the same time--in keeping with the conference's theme--there's an extraordinary amount of opportunity, Bezos insisted.

"Some of the most important barriers to entry in that industry have been dissolved, and they've been dissolved permanently."

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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by gerrrg June 15, 2009 2:03 PM PDT
What Bezos meant to say, is that Google's deal excludes Amazon's ability to monetize out-of-print books, plain and simple.
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by dargon19888 June 15, 2009 5:15 PM PDT
It goes beyond that. Suppose you wrote a book, it got published and didn't get a lot of copies sold. It goes out of print and you go back to your day job and shelve your dreams of being the next great writer.

Fast forward a couple of years. Google now scans your book and publishes a portion of it online. You start to get a cult following.

Under Google's deal, you would have automatically been entered in to their 'land grab' because you didn't opt out. You will get *some* royalties but much less than you would have gotten from a traditional publisher. Even if you have an electronic copy of your book that you could rush to a publisher, you can't. You no longer own the rights to your own work.

In short, Google's deal automatically steals your IP unless you opt-out on short notice. The bad news is that its not just you, but authors who have died, yet still hold the copyright on their books that are out of print. Unless their estates know about this deal, they have to opt-out too.

Its the greatest con job if they can pull it off.

Also consider this... You put your own works online on your website. Google scan's your book and you don't opt-out. Google then sues you for copyright violation on your own work. And they would win! How's them apples?
by wshun0 June 15, 2009 7:12 PM PDT
@dargon19888: I don't understand your last statement, it looks stupid. Google cannot steal your copyright.

The solution is dead simple. (1) A writer can simply ask Google to opt out all his works. (2) His work should include a statement rejecting any third party to do things on his work without his approval -- just like what a software maker does.
by Vegaman_Dan June 15, 2009 9:13 PM PDT
Actually you can lose your IP if you don't defend it. If Google posts your work online and you don't go to enough effort to protect against it, or it happens without your knowledge (more likely) for any length of time, Google could then gain the rights to the work through having had it posted for X amount of time and no contention filed.

It's stupid, but it's why groups like Disney have to keep protecting themselves by suing daycares and hospitals for painting Mickey Mouse on the wall of a children's burn ward.
by unknown unknown June 15, 2009 10:54 PM PDT
@ Vegaman_Dan Actually that only applies in the case of trademake. Failure to enforce a copyright or patent will not invalidate them. uspto.gov and copyright.gov if you want to look it up.
by istill316 June 16, 2009 6:09 AM PDT
Opt-out is the biggest scam I've heard. Somebody can rob you and gets to keep all your stuff as long as you can't find them or don't know you've been robbed? LAME. How the heck is this legal?
by mayselc June 16, 2009 7:21 AM PDT
You guys might want to read the settlement agreement. It's not totally incomprehensible. This section might shed some light on your concerns:

2.4 Non-Exclusivity of Authorizations. The authorizations granted to Google
in this Settlement Agreement are non-exclusive only, and nothing in this Settlement
Agreement shall be construed as limiting any Rightsholder?s right to authorize, through
the Registry or otherwise, any Person, including direct competitors of Google, to use his,
her or its Books or Inserts in any way, including ways identical to those provided for
under this Settlement Agreement.
by dgutf June 15, 2009 2:09 PM PDT
Amazon has had the same opportunity to digitize books as Google has had. Sour grapes.
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by unknown unknown June 15, 2009 6:47 PM PDT
No, Google's Book Search settlement is bad. Even the DOJ is looking into it (now that they've decided to start enforcing the anti-trust law again) because the advantage it gives Google over everyone else when it comes to out of print books. Basically if Google scans an out of print book and the owner doesn't opt-out, Google become sole distributor for that book.
by LilySpark01 June 15, 2009 2:29 PM PDT
I got a problem with google book search and the so called settle ment. They have a recently published book listed as non commercially availiable but it is availiable
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by shinelikeitdoes June 15, 2009 2:53 PM PDT
way to back that up with some evidence.
by shoonya June 15, 2009 2:41 PM PDT
Yeah right and Google is squeaky clean ..... you smell something fishy from miles..
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by Super2online June 15, 2009 2:50 PM PDT
It's not clear to me from the article that these agreements don't preclude others from doing the same if they are fincially capabile of pulling it off. I would hate to think that the only place you could get this was from Google. That in itself would create a monopoly.
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by professionaladventurer June 15, 2009 2:53 PM PDT
Yeah, his first quote says it all: "I have an opinion and I am keeping it to myself" I.E. we are about to sue you.
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by ashish_12 June 15, 2009 3:22 PM PDT
It's been a while since I've heard the word 'sinecure' being used. I'm not sure he used it correctly though.
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by mishmash0101 June 15, 2009 3:45 PM PDT
Bezo's and the print industry just can't understand that they are the dinosaurs in the digital age.
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by Police_States_of_America June 15, 2009 7:52 PM PDT
at least we can look forward to google distributing the books without digital_AIDS, whoops i mean DRM, can you do that amazon?
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by jonahb June 15, 2009 7:59 PM PDT
ashish_12: You are correct, sir. I think he meant panacea, not sinecure.
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by Vegaman_Dan June 15, 2009 9:15 PM PDT
Surprisingly, nobody has mentioned this is all Microsoft's fault yet. Most topics here have someone saying that regardless of what the actual topic is. :)
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by Simplicius June 16, 2009 6:54 AM PDT
You are right. I wonder how many of the comments saying negative things about Google were posted by paid Microsoft shills. It is known that large companies such as MS pay people to post, so it's probably part of their campaign to paint Google bad.
by Super2online June 16, 2009 7:06 AM PDT
Simplicius ,

That may be true, but, in this case, Google is doing very well on their own painting themselves exceptionally bad.
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by chuckl8899 June 16, 2009 11:31 AM PDT
It's ironic that Bezos implies that e-readers might be part of the advertising solution for newspapers and magazines when there's no advertising model for newspapers/magazines on the Kindle and no support for color or video, and that Amazon takes 70% of the revenues from people reading magazines and newspapers on Kindle. Sounds to me like Amazon is more like the problem than the solution for publishers of magazines and newspapers
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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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