RE: Darnton on the Google settlement

[richards1000@comcast.net]

Thanks to Rick, Joe, and Sandy for highlighting the information 
costs for rights holders of participating in the Google 
settlement. I want to underscore the role of the Book Rights 
Registry respecting these costs. The rights holders can use the 
registry database to record all of the data necessary for making 
decisions respecting their rights in this first transaction. 
Because the registry can function as a rights organization, the 
rights holders can then use the registry to make quick and 
efficient licensing decisions in subsequent digitization 
transactions, such as those with Google's competitors. Although 
the rights holders are incurring very high information costs in 
this initial transaction, those costs can be amortized over many 
subsequent transactions. I think this demonstrates how the 
registry, functioning as a rights organization, can reduce 
information and transaction costs in this market, thereby 
lowering barriers to entry. This should encourage Google's rivals 
to enter the market for digitizing in-copyright and out-of-print 
books, increasing competition and benefiting consumers.

Robert Richards

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Robert C. Richards, Jr., J.D.*, M.S.L.I.S., M.A.
Philadelphia, PA
richards1000@comcast.net
* Member New York bar, retired status.
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