The Authors Guild Inc._ Et Al v Google Inc. Settlement by backgroundnow

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									Case 1:05-cv-08136-DC

Document 720

Filed 09/18/2009

Page 1 of 32

2009-11-27

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK THE AUTHORS GUILD, INC. et al., Plaintiffs, 05 Civ. 8136 (DC) v. ECF CASE GOOGLE INC., Defendant.

STATEMENT OF INTEREST OF THE UNITED STATES OF AMERICA REGARDING PROPOSED CLASS SETTLEMENT

WILLIAM F. CAVANAUGH U.S. Department of Justice Deputy Assistant Attorney General Antitrust Division 950 Pennsylvania Avenue, NW Washington, DC 20530-0001 Tel.: (202) 353-1535

PREET BHARARA United States Attorney for the Southern District of New York JOHN D. CLOPPER Assistant United States Attorney 86 Chambers Street, 5th Floor New York, New York 10007 Tel.: (212) 637-2716

SOURCED: WWW.BACKGROUNDNOW.COM Page 1 of 32 www.BackgroundNow.com provides background checks to businesses; publishes fraud, corruption, and other criminal and civil case news; and distr butes case complaints, indictments, plea agreements and other court documents to analysts, bloggers, journalists, reporters and interested readers. Always keep in mind that indictments, complaints or informations are not evidence of guilt. These are descriptions of accusations made against defendants. Those accused are presumed innocent until guilt beyond a reasonable doubt is proven or until guilt is admitted or plead.

Case 1:05-cv-08136-DC

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TABLE OF CONTENTS I. Aspects of the Proposed Settlement in Its Current Form Require Modification to Satisfy Rule 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 A. The Most Forward-Looking Provisions of the Agreement Require Modification to Satisfy Rule 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Parties Have Not Demonstrated that the Class Representatives Adequately Represent Absent Class Members . . . . . . . . . . . . . . . . . . . . . . . . . 8 The Scope of the Proposed Settlement Requires Robust Notice, and the Record Requires Further Development of Whether Such Notice Has Been Provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 The Parties Should Consider Modifications to Address the Requirements of Rule 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

B.

C.

D.

II.

The Proposed Settlement May Be Inconsistent with Antitrust Law . . . . . . . . . . . . . 16 A. Horizontal Agreements Among Authors and Publishers as to Terms of Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1. 2. 3. B. Collective Agreement on Wholesale Terms . . . . . . . . . . . . . . . . . . . . . . 19 Restrictions on Retail Price Competition . . . . . . . . . . . . . . . . . . . . . . . . . 21 Terms of Sale for Orphan Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Potential Foreclosure of Competition in Digital Distribution . . . . . . . . . . . . 23

III.

Additional Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

SOURCED: WWW.BACKGROUNDNOW.COM Page 2 of 32 www.BackgroundNow.com provides background checks to businesses; publishes fraud, corruption, and other criminal and civil case news; and distr butes case complaints, indictments, plea agreements and other court documents to analysts, bloggers, journalists, reporters and interested readers. Always keep in mind that indictments, complaints or informations are not evidence of guilt. These are descriptions of accusations made against defendants. Those accused are presumed innocent until guilt beyond a reasonable doubt is proven or until guilt is admitted or plead.

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Case 1:05-cv-08136-DC

Document 720

Filed 09/18/2009

Page 3 of 32

2009-11-27

TABLE OF AUTHORITIES Cases Amchem Prods., Inc. v. Windsor, 521 U.S. 591 (1997) . . . . . . . . . . . . . . . . . . . . . . . 5, 6, 7, 10, 12 Arizona v. Maricopa County Med. Soc’y, 457 U.S. 332 (1982) . . . . . . . . . . . . . . . . . . . 17, 18, 20 Assoc. Press v. United States, 326 U.S. 1 (1945) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Broad. Music, Inc. v. Columbia Broad. Sys., Inc., 441 U.S. 1 (1979). . . . . . . . . . . . . . . . . . 18, 19 Catalano, Inc. v. Target Sales, 446 U.S. 643 (1980) (per curiam). . . . . . . . . . . . . . . . . . 17, 20, 22 Citizen Publ’g, Co. v. United States, 394 U.S. 131 (1969) . . . . . . . . . . . . . . . . . . . . . . . . . . 21, 22 Eisen v. Carlisle & Jacquelin, 417 U.S. 156 (1974) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 E. Tex. Motor Freight Sys., Inc. v. Rodriguez, 431 U.S. 395 (1977) . . . . . . . . . . . . . . . . . . . . . . . 5 Gen. Tel. Co. of the Sw. v. Falcon, 457 U.S. 147 (1982) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 
								
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