4 Lessons from the Google Books Fiasco

I love and use Google, but I still send a high-five to federal Judge Denny Chin of the Second Circuit US Court of Appeals for rejecting the proposed settlement that would have cleared the way for Google to proceed in finishing its digital store of millions of out-of-print and "orphaned" works (books still in print but whose copyright holders are not easily found).

Instead, the ruling gives book publishers, authors and content sellers a chance to make Google's book library a better deal for all sides, and for content creators and sellers to think more strategically about their role in a low-cost digital marketplace.

Some background: Chin ruled that the scope of the settlement amounted to monopoly control for Google to profit from this market in part because it put the onus on copyright holders to notify Google to exclude them, vs. requiring copyright holders to opt in. BNET blogger Erik Sherman pinpointed other trouble spots, most notably how the settlement allows Google a solid gold loophole in how it monetizes "future uses" of copyrighted works.

As that debate continues, here are what I see as the key areas of opportunity for publishers, marketers, and owners of content:

1. Google needs to become a tool for promoting book sales, not giving them away for free. When you visit Apple's iTunes, and sample a song, you hear a consistent 90 second song sample. Google Books shows 20% of a particular book; however, the power of Google search means that the interface delivers preview content highly germane to your search terms. As a result, you probably walk away without buying content.

Let's take a search I performed on Google book search for "fly fishing knots." The search returned hundreds of available books. Hundreds had previews. Orvis' Guide to Leaders, Knots, and Tippets (Lyons Press, 2008) is 160 pages long--30 full pages on knot tying were available for free as a preview. The Orvis Guide to Beginning Fly Fishing (Orvis Company, 2009) is 195 pages long, and I could sample 20 full pages of text. This proportion holds for most books with "previews" of book content in this specific topic. I could easily assemble all the information I needed on knot tying without clicking to buy.

Google book search will continue to look and feel more like a global digital research library (I, like many, already use it as such) than a store; therefore, publishers should get more value from Google than its share of revenue. The widely-respected publishing and intellectual property lawyer Lloyd Jassin, whose blog is a vital source of insight on IP issues, pointed out to me,

"The knife to Google's throat, i.e., litigation, should have been used to compel them to help publishers sell more in-print books to readers. And, if compliant with the hodgepodge of domestic privacy law, publishers should have found a way to get Google to contribute information about who the customer for those books are--.In the future, the game will likely be how to monetize readers, not sell books. That may be the lost opportunity."

2. Publishers need to get serious about protecting intellectual property. As noted in Publishers Weekly, the digital content monitoring company Attributor found that demand for pirated e-books increased by about 50% between 2009 and 2010, "including a 20% increase since the spring launch of the iPad." Just because they're annoying or even dysfunctional, legal protections for copyright should not be watered down in a global economy. By partnering with retailers and technologists for solutions, publishers can add credibility to their relationships with authors and agents.

3. Offer copyright holders an alternative to "going out of print." Publishers could offer a range of digital publishing alternatives to going out of print--condensed low-priced ebook with high royalty, additional promotion and placement in Google book listings, ebook bundling with similar authors and topics.

4. Content sellers and creaters should offer "premium" content to further their brand. As the publishing industry is moving to a low-cost, digital marketplace, the opportunity exists to set yourself apart by offering high quality content for a premium. As IP expert Jassin noted in an interview,

"If the (cost to produce) and value of a book drops, how do publishers maintain value? Maybe greater investment in better books, available only on a central server? Publishers need to stand for something. You need to give creators an incentive to create."

Publishers could create "premium content" by expanding curation and customer recognition. They could invest heavily in design, revive highly-branded, high-quality anthologies or series, partner with powerhouse creative types to curate selected book lists (imagine Lee Child, Stephen King or Jodi Picault as a guest editor), sponsor more contests and festivals for writers, or create moderated online book clubs for writers as Simon & Schuster has so brilliantly done with its online book club for "tween" readers.

What do you think of my list? Is there anything you would add to help remake this Google books settlement?

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