Opinion: Google settlement pays big for books, and what about news?

Posted by Rosemary D'Amour on November 4, 2008 at 12:59 PM
"Google has now conceded, with a very large payment, that information is not free," said Peter Osnos, Senior Fellow for the Media at The Century Foundation, after a $125 million payout for publishers and authors who sued the major search engine for rights to digitize copyrighted books.

Despite the "myriad" of issues left to be resolved for the publishing industry, the event has called into question the use of news on search engines.

Osnos asks, "Why aren't newspapers and news magazines demanding payment for use of their stories on Google and other search engines?  Why are they not getting a significant slice of the advertising revenues generated by use of their stories via Google?"

The news industry has become increasingly desperate in its search for revenue--there have been more layoffs and payoffs than ever.  The "increasingly urgent dialogue" about new business models for newspapers has addressed the lack of advertising, falling readership, and technological transition, but has yet to address "an absolutely core issue of fairness and increasingly of survival."  

That is, to "take on Google."

News is a prominent figure in search engines, such as Verizon, which profit from advertisers in the digital age.  However, the "key providers of the news that flows through their digital services are being asphyxiated to an extent that is a massive threat to our information culture, a pillar of our democracy," Osnos said.

The Associated Press and news agencies in Canada, France and Great Britain have licensing agreements that are similar "in concept" to the deal that publishing companies reached with Google.

"The collection of quality news is expensive," Osnos said.  Without the quality product of news organizations, the Internet's news supply would become a "cesspool" of useless information, according to Eric Schmidt, CEO of Google.

Osnos blames a "collapse in morale" for the failure of news companies to organize an effort on an issue such as web sharing.  Internet giants such as Google drive "a very hard bargain" when it comes to settling business interests, Osnos said, but change could happen through "persistence and grit."

"A way has to be found--and fast--for those now making money from the distribution of news to pay for it," Osnos said.

Source:  Poynter.org

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