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Review of Economic Research on Copyright Issues, 2011, vol. 8(1), pp. 7-50
THE GOOGLE BOOK SEARCH SETTLEMENT: A LAW AND
ECONOMICS ANALYSIS
FRANK MULLER-LANGER AND MARC SCHEUFEN
ABSTRACT. Beginning in December 2004 Google has pursued a new project
to create a book search engine (Google Book Search). The project has
released a storm of controversy around the globe. While the supporters
of Google Book Search conceive the project as a first reasonable step
towards unlimited access to knowledge in the information age, its op-
ponents fear profound negative effects due to an erosion of copyright
law. Our law and economics analysis of the Book Search Project sug-
gests that - from a copyright perspective - the proposed settlement may
be beneficial to right holders, consumers, and Google. For instance, it
may provide a solution to the still unsolved dilemma of orphan works.
From a competition policy perspective, we stress the important aspect
that Google's pricing algorithm for orphan and unclaimed works effec-
tively replicates a competitive Nash-Bertrand market outcome under
post-settlement, third-party oversight.
1. INTRODUCTION
George Orwell's metaphor of a big brother [who] is watching you (Or-
well, 1949) appears to be no dystopia in 2011. The technological revolution
ushered in by the internet and the increase of possibilities in the digital
environment have facilitated a framework in which spying on the data of
everyone is a real possibility anywhere and at any time. Meanwhile, to
We are grateful to an anonymous referee, our colleagues and faculty members as well as
seminar participants in Rotterdam and Wiesbaden for suggestions, comments, and ques-
tions that helped us to find our way. Nevertheless, all remaining mistakes are obviously
ours. In addition, our analysis does not necessarily reflect the views of the Max Planck
Institute for Intellectual Property and Competition Law and the Institute of Law and Eco-
nomics. Finally, we wish to thank Sebastian Osterrieth for valuable research assistance.
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