Breaking news: Judge Chin rejects the Google Books Settlement

James Grimmelmann has just reported that Judge Denny Chin has rejected the Google Books Settlement. (For background, see my previous posts on the Google Books case or The Public Index website.) The full opinion is here (PDF). I haven’t read the whole thing yet, but below are a couple of excerpts from the beginning and the end of the opinion:

The question presented is whether the ASA [Amended Settlement Agreement] is fair, adequate, and reasonable. I conclude that it is not.

While the digitization of books and the creation of a universal digital library would benefit many, the ASA would simply go too far. It would permit this class action– which was brought against defendant Google Inc. to challenge its scanning of books and display of “snippets” for on-line searching– to implement a forward-looking business arrangement that would grant Google significant rights to exploit entire books, without permission of the copyright owners. Indeed, the ASA would give Google a significant advantage over competitors, rewarding it for engaging in wholesale copying of copyrighted works without permission, while releasing claims well beyond those presented in the case.

Accordingly, and for the reasons more fully discussed below, the motion for final approval of the ASA is denied….

In the end, I conclude that the ASA is not fair, adequate, and reasonable. As the United States and other objectors have noted, many of the concerns raised in the objections would be ameliorated if the ASA were converted from an “opt-out” settlement to an “opt-in” settlement…. I urge the parties to consider revising the ASA accordingly.

I recommend checking Grimmelmann’s blog (The Laboratorium) for his analysis and information about the case.

Update: Here’s the link to Grimmelmann’s new post, “Inside Judge Chin’s Opinion.” More links at The Public Index Blog and TeleRead. Publishers Weekly has an interesting article about what could happen next and the obstacles in the way of revising the settlement.

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