Business Ethics - Google books case study

In 2002, Google unveiled its plan to make all the books in the great libraries of the world available to anyone, anywhere with an Internet connection. To some, this was a grand liberating vision, unlocking the knowledge of humankind for the benefit of all. But to those owning copyrights over these books, this grand liberating vision looked more like grand larceny. In 2008, Google reached

a landmark settlement in a lawsuit brought by the Author's Guild (AG) and American Association of Publishers (AAP). Google agreed to pay $125 million to the AG and AAP and implement certain restrictions on their project. In return, they would gain non-exclusive rights to digitize copyrighted works of the authors and publishers represented by AG and AAP. This allowed Google to proceed with its library project in which it had offered to digitize library holdings of major libraries at no cost. The agreement also gave Google the right to include the full text pages in its search services, thereby increasing the potential use of its search services and benefiting Google through additional advertisement sales.

Question:

What effects will digitization have on the market for books? Will it affect incentives for authors to create and innovate? Will it change the kind of books, or the content of the books, that are written? What will be the consequences for those authors who "opt-out" of the agreement? Who is responsible for these effects: Google, the publishers, the authors, or the consumers?

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