Google Book Settlement Update: DOJ Pursues Formal Investigation

Since being unveiled last October, the proposed class action settlement to resolve copyright infringement claims arising out of Google's digitization of millions of books without authorization has been closely watched by the author and publisher community. Due to the complexity and potential impact of the settlement, which would give Google certain rights to continue to use the digitized books, the court overseeing the settlement has extended the original May 5, 2009 deadline to opt out or object to September 4, 2009. The fairness hearing for final approval of the settlement is now scheduled for October 7, 2009.

In the meantime, the U.S. Department of Justice has launched a formal antitrust investigation into the settlement, issuing demands for information to Google and other parties involved. A primary focus of the inquiry appears to be that under the settlement, Google, unlike its competitors, would be given free rein to exploit so-called "orphan" works -- that is,