Thursday, June 4, 2009

Money Changes Everything





It never ceases to amaze me how a big fat paycheck can make people change their tune. I haven't read the original complaint filed in the Google Author class action, but I think I'm safe in guessing that at least part of my beef (copyright infringement and fair use) with Google is similar to those outlined by the Author's Guild and their attorney Michael Boni back in 2005.

The difference now of course is that Michael Boni has Google waving a $15 Million dollar carrot in front of his face to settle this case.

In my course to find representation I was directed to J. Garchik (who held a seminar on the settlement in San Francisco) by Dan Girard who is too busy to help me, because he has sued every financial institution on the face of the earth in wake of the financial crisis. Here is my original email -

Hello!

I will be opting out of this Google Author Class Action Settlement, and am looking for representation. Personally, I was outraged to find that Google had scanned my book
and had made it available online. The old adage "why buy the cow when you can get the milk for free?," precisely describes the predicament.
My damages include lost royalties from dimished book sales -- and as my book is photo heavy, I have also lost usage fees for those photographs. I have found photos from my book all over the internet in blogs, ebay listings, and other postings, and I am certain Google facilitated this.
The original class action complaint makes simple copyright infringement claims, the antitrust issues appear to arise out of the terms of the settlement, but may be present regardless, considering Google's position and strength. From what I've read, I deduce that the judge is mindful of the opposition, but prone to approve the settlement.
My publishing deal was very small, and I estimate my damages to be around $10,000. If there are 1,000 opt outs which is a reasonable number if authors are made aware of the settlement (the only notice I received was from my publisher when the 4 month extension was granted, if it wasn't (I can thank the John Steinbeck family for that) I would have been s.o.l.) then the value of the class on the very low end would be at least $10 Million dollars. That would not include future damages in Google tying up access to intellectual property.
There is much press, and certainly lots more to come and generate as writers are also class members, friends of class members, or could have future works affected by the settlement. Simply put, if affected writers are active readers, then there should be a flood of dissent, and a huge pool of opt outs.
As far as I can tell, a law firm has not stepped forward to represent the interests of the opt outs. Let me know if you are interested. You can reach me on my cell phone. Thanks!
Here is the response I got from J. Garchik -
I think you should reconsider your opt out decision.
Maybe you do not understand the settlement. see www.googlegooksettlement.com and the FAQs for details. Google claims it owes nothing and did nothing illegal under the fair use doctrine. You get $60 to $300 for your book under the settlement.
Your photos are not part of the settlement and are reserved for you.
J.Garchik,S F Atty
I felt this response was rather condescending, and my response to J. Garchik was forwarded by him to Michael Boni, who responded to my response with a blue line version (if you would like to read it you can scroll down) and then I responded to that, and so on and so on. It ended up with Michael Boni's final response, which was -


I am sorry you feel the way you do about the settlement, and for my presuming that your views were influenced by others. I guess I am getting a bit paranoid! You are of course right that Google is paying the costs of the Notice Program and to establish the Registry, and for other benefits as well. But Google will have no control over the Registry or its operations, nor did it have any control over the Notice Program. And I guess we’ll end up not agreeing on the sufficiency of the Notice Program.

In any case, I would be pleased to assist you in determining how your book ended up in Google’s database. If you tell me the title, I will ask Google. Also, if you let me know the name of your publisher, that may help as well.

Kind regards,

Mike
Michael J. Boni
Boni & Zack LLC
15 St. Asaphs Rd.
Bala Cynwyd, PA 19004
610-822-0201
610-822-0206 (fax)
610-348-2526 (mobile)
mboni@bonizack.com



Thank you Mr. Boni for your attention to my concerns. I will have to point out your assumptions and inaccuracies, but I won't blue or red line to do it.

First off, I don't know if my book was in or out of print when it is scanned. If you could tell me how to determine that, I would love to know! I am currently out of print. I won't go into detail beyond that . . . I'm certain you realize your pitch on the Partner Program falls apart if I was out of print when I was scanned.

I do blame Google and its overexposure of books online for killing traditional sales of books, including mine.

I would also like to know if Google books was showing more than 20% of the book when it began, I remember seeing my book in its entirety online.

I have downloaded my own photographs off of Google Books, it is easy to do so.

Thank you for correcting me regarding the duty to notice. You're right, that is Plaintiffs responsibility --- but surely you don't expect me to believe that $20 Million dollars is coming out of your or the Author's Guild's pocket! Google is paying that money, and you have been working closely with Google to craft this Settlement.

And again for Google not establishing the registry, do you REALLY expect me to believe that the plaintiffs are ponying up the extra $14.5 Million ($34.5 - $20 Million for the Notice Program) to establish this entity???

We all know the Golden Rule . . . the one with the gold makes the rules.

But back to the notification of class members. It is WOEFULLY INADEQUATE!!! I only received notice, not directly, but forwarded as a link from my publisher to my co-writer, with her personalized message -- What the HELL is THIS? This was after the opt out period was extended. If not for the efforts of the Steinbeck family I would have been bound by the horrible terms of this settlement.

So whether the Notice Program cost $10 Million or $20 Million, it was money wasted.

It occurred to me today, that if the Notice had been printed and mailed to all the affected Authors that are easily found (my address is not on my book, but a people search costs as little as 25 cents, and simply asking my publisher for the current addresses of their Authors would have been free) it wouldn't have been cheap . . . but at least an inexpensive postcard to say "Your Rights Have Been Affected by the Google Author Settlement, visit this website or call this toll free number for more information" would have been a step in the right direction.

In fact, I suggest you do that. I've worked many a class action claims process. For many years *I* was the one doing exactly what you are doing now. Yes, it was my job to disseminate information on class action notices, and encourage people to participate in the settlements. So you see, I know of whence I speak.

I would also like to know exactly how much the Class Notice Program costs, and who is being paid what. If it is somewhere in the 300 page Settlement Agreement, please let me know where I can find this information.

As for Rightsholders being in full control of their works, that is only true if they are aware of the Settlement and the consequences. Otherwise, Google is profiting from their works.

As for the Ad Revenues issues, I think we are not understanding each other. Let's just say, I did not become aware of the Settlement, it was approved, and my book remained on Google Books. How would I possibly benefit from the Ad Revenue (and I mean an Ad for say . . . a kindle, or a bookmark, or a book reading light) that Google collected everytime someone flipped the page on my book online? In essence, Google is profiting by having and displaying access to my intellectual property.

My conclusions on the merits and faults on this settlement were made COMPLETELY on my own. As I mentioned before, I am well versed on the mechanics of class actions from start to finish, and if anyone could decipher a 32 page (!!!!) Settlement Notice, it would be me.

Even though I was made aware (again, by default) of this Settlment in early May, I have been busy, and really haven't thought about it at all until a little light bulb went off in my head last week. I looked over the Settlement Agreement and immediately knew I would be opting out, and that I should start the search for representation.

I did begin to research the Settlement online -- but believe me here -- if there was any hype to discount, it was the press releases generated by Plaintiffs and Google.

Honestly, I do not know who the detractors are that you are referring to -- most of the press I have read has been at least impartial, and some has been favorable. Let me make this very clear, I have not been contacted by any "self interested detractors." I am interested in preserving my rights, and the rights of Authors around the world. I have not yet contacted any of my writer friends and acquaintances to notify them of the Settlement, and ask their opinion about it. I prefer to do my homework first, and to find someone who will truly represent our rights in this situation. You should check your paranoia. . . or perhaps I need to delve further to understand who is objecting to the Settlement and why. I only know that *I* object to it, and will be opting out.



In a message dated 6/3/2009 1:06:02 PM Pacific Daylight Time, MBoni@bonizack.com writes:


We represent the Author Sub-Class. Jerome Garchik, Esq., was kind enough to forward to me your email to him about the settlement. I hope you don’t mind, but I thought it might help if I responded to several points made in your email. Those responses are in blue, and are interspersed in the text of your email below. I think the biggest point to make is that much of what you complain of has to do with your publisher’s decision to participate in the Google Partner Program, which is a separate program that is not covered in or a part of the settlement. Also, the settlement could in no way have contributed to the display of your photos on the Internet. You should discuss with your publisher how those photos made their way onto the Internet.

We would be happy to discuss the settlement further with you at your convenience. If you still wish to opt out, we can assist you in doing that as well, but we hope you will decide to participate instead.

Best regards,

Michael J. Boni
Boni & Zack LLC
15 St. Asaphs Rd.
Bala Cynwyd, PA 19004
610-822-0201
610-822-0206 (fax)
610-348-2526 (mobile)
mboni@bonizack.com



---------- Forwarded message ----------
Date: Tue, 2 Jun 2009 21:16:25 EDT
Subject: Re: Google Author Settlement Opt Out
To: jchikesq@gmail.com


Thank you for responding to my email, J. Garchik.

I do have a good grasp of the Settlement and I will most definitely be
opting out and pursuing my claims against Google.

I just received a Royalty Statement from my publisher, sent directly to me
at my current address. I've been told the Notice program for this
settlement cost $20 million dollars. This is inaccurate. The Notice Program will end up costing considerably less. If that is true, then I do not understand why
Google couldn't read my name, and the name of the publisher off of my book
that was scanned, and send a Class Action Notice directly to me. Google is
making no effort to track down Authors (in or out of print) and the
copyright holders of orphaned books. I am outraged. It is not Google’s obligation to send Notice; that is the duty of the Plaintiffs. Plaintiffs have undertaken major efforts, themselves and through the nation’s leading class action professional Notice Provider, to locate as many rightsholders as practicable using reasonable efforts, as required under the law. Also, the term “orphaned books” has been used as a political football by the advocates of free and open Internet access to works, including in-copyright works. The vast majority of the books under the settlement are not “orphaned books” as that term has traditionally been used in copyright circles, but rather are books whose rightsholders are indeed being found through the Notice Program by the many thousands, and will continue to be found by the Registry on an ongoing basis.

$60 to $300 is a drop in the bucket (that is just one of many benefits of the settlement, and is provided only for those books that Google has already scanned as of May 5, 2009), and is akin to a slap in the face for Google scanning my book and making 20 percent of it available online. This has nothing to do with the settlement. Google is not displaying books under the settlement yet, and will not do so until after the settlement is finally approved and made effective by the exhaustion of all appeal possibilities. If Google is displaying 20% of your book, then that is because your publisher has authorized Google to do so. If you are unhappy with this, then you should contact your publisher and direct it to tell Google to remove your work if you have the contractual right to do so. Or you can contact Google directly and request that it not preview 20% (or any) of your book. My
photos have been downloaded off of Google Books and are appearing without my
permission all over the internet. Again, if Google has displayed any of your photos, that had nothing at all to do with the settlement, which excludes photographs. Your beef is with your publisher, which may have authorized Google to display some or all of your photos as part of the 20% preview display. Publications are now requesting photos
from me, and are shocked when I request a $100 (very reasonable) usage fee.
In years past, usage fees were part of doing business, and I had received
them from PBS, MTV, The New York Times, the London Guardian, as well as other
media companies.

Even though I understand I can request Google to take my book down (which I
will do) the damage is done. It is like closing the barn door after the
cow (which is giving its milk for free) has run away. Your publisher likely authorized Google to display portions of your book. Or it could be that you authorized your publisher to “promote” your book, and your publisher views Google’s Partner Program as promotional activity. In any case, this has nothing to do with the settlement, which has not yet been implemented.

Google receives ad revenue every time someone skims through my book on
Google Books. Google does not want to partner with authors and help them sell
books, that is hogwash. Google wants to control the online marketplace and
make money off of their ad revenue. The more books they make available (and
the more of that book that they show) the more money they make from the ads. Any present ad revenues, under the Partner Program (which is not part of the settlement), should be shared with the publisher and the publisher should share its cut with you if your contract calls for such a share. In fact, we understand that very few revenues have been generated under the Partner Program. When the settlement is effective and the programs go live, rightsholders will receive 63% of all ad revenues generated from ads placed on the rightsholders’ book pages, as well as 63% of the revenues generated from book sales and subscriptions sold to institutions. We believe that this is a great deal for rightsholders, especially those whose books are out of print and haven’t been read or purchased in years and decades.

Google establishing a non-profit (tax deductible of course) entity similar
to ASCAP to the tune of $34.5 Million dollars, to supposedly benefit
authors is another joke. In fact, Google is not establishing the Registry, the authors and publishers are, to enforce Google’s obligations under the settlement, locate rightsholders of out of print books, make sure the rightsholders are paid under the terms of the settlement, resolve rightsholder disputes, and otherwise represent authors’ and publishers’ interests. I was told that $20 Million of that is being used for the Class Notice Program (conveniently the Notice doesn't break this information down – it was impossible to do so at the time the Notice was published, as funds have been used since December 2008 to notify class members) that is too cheap to make even the slightest attempt to send me notice. Having your name listed on a book alone is insufficient to send you direct notice. Your address is not on the book. Your publisher should have sent you notice, and if it hasn’t you should contact your publisher and ask it why it has not done so. I only received notice by default (meaning what?) when the opt out period was
extended. Someone is pocketing a huge chunk of change here. . That is unfair and untrue every penny is accounted for and has been spent exclusively on the notice program and initial steps toward establishing the Registry.

Plain and simple this settlement is a sweetheart deal for Google, the
lawyers involved, and the claims administrator, with no real benefit to the
class. This is inaccurate. The benefits of the Settlement are summarized in the attached short outline of settlement benefits. It is designed to strip authors of their rights, transfer them to
Google, and line the pockets of Google and select members of the
legal community. This is just not so. No copyright ownership interests are being transferred to Google. The authorizations Google has received to use books under the settlement are non-exclusive only, meaning that no copyright ownership interests are being transferred at all. What is more, rightsholders at any time can exclude out of print works from any or all display uses, and can remove their works entirely from Google’s database if the request is made by 4/5/11. In print books will not be displayed at all unless both the publisher and author expressly include the books in the program. Rightsholders can set the price of their books; can tell Google not to place ads in the margins around their book pages; can tell Google not to show snippets of their books; can tell Google not to show previews of their books; can receive a hosted version of their books to sell on their own website if they like, and not share any revenues earned from those sales with anyone. In short, rightsholders are in full control of their works under the settlement, and Google’s rights are narrowly circumscribed. Please don’t buy the hype and deliberate misinformation being peddled by self-interested detractors of Google and, by extension, this very positive settlement for book authors.

Google can claim that it has down nothing wrong, and that what they did was
legal under the fair use doctrine, and of course, conveniently under the
terms of the settlement they can admit no guilt on this issue for eternity.

I've never been actively involved as a class member or party to litigation,
but I am well versed on the mechanics of class actions and the resulting
settlements. This is not my first rodeo.

I'll definitely be opting out, and I will be making sure that all my
author friends are aware of the settlement and do understand it. If you do, please review the Notice again, and consider the facts set forth herein, as your comments reveal some fundamental misunderstandings about the settlement.

I regret that I can not object once I have opted out, but I will do
everything in my legal power to let class members, the Court, the
Department of Justice, and the lawyers involved know where I stand. We now know where you stand. We regret that your position appears based on the writings of detractors of Google, of proponents of free and open access to copyrighted material on the Internet, and of those who are parroting the inaccurate statements of others. To recap, if your book is in print, it will not be displayed unless your publisher and you authorize its use under the settlement. If it is already being displayed, that is because your publisher has permitted Google to do so under the Partner Program, which has nothing to do with the settlement. As for books that are out of print, the settlement will provide new exposure for a new audience to read and pay for those books. Most authors see this as a very positive development in favor of author rights.


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