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Putting The Screws To Google

How Old Media could take back its share of search's ad bounty  —  What if 2006 is the year big media players take aim at Google's (GOOG ) kneecaps?  No, not with more lawsuits; the Authors Guild, the Association of American Publishers — on behalf, in part …

Business Week

Context & Ripple Effects

This column lands at the tail end of a year in which publisher anxiety about Google went mainstream: New York Magazine had already diagnosed the mood as "Googlephobia" in November 2005, and October reporting showed the coalition was not monolithic — some writers sided with Google rather than with the Authors Guild suing it.

Against that backdrop, Jon Fine's Business Week piece is a strategic provocation, not a news event: he floats the unconfirmed idea that old media could go beyond the Authors Guild and Association of American Publishers lawsuits already aimed at Google's book-scanning program and start contesting the company's hold on search-advertising economics itself. Its significance is that it reframed copyright suits as an opening bid in a fight over who captures the ad bounty that indexed content generates.

First-order effects

  • Google enters 2006 facing confirmed legal challenges from both the Authors Guild and the Association of American Publishers while a prominent Business Week voice publicly urges publishers to escalate from copyright claims to the ad-money question.
  • Publishers reading the column get a template for collective action: treat indexing and search placement as a bargaining chip rather than free distribution.

Second-order effects

  • If major media houses act on Fine's framing, Google's response would set terms for every other aggregator — rivals and partners alike inherit whatever licensing or revenue-share precedent emerges from the standoff.
  • Newspapers and book publishers gain leverage in direct deals with portals, since credible threats to withhold or charge for content change the default price of access.

Third-order effects

  • A sustained publisher push would push the industry toward explicit compensation norms for content used in commercial search and aggregation, replacing the tacit free-indexing assumption of the early web era.
  • The litigation track risks hardening into a structural divide between platforms that capture ad value from others' content and owners demanding a cut — a fault line regulators may eventually be drawn into.

The trend: Content owners are moving from grudging tolerance of search engines toward organized attempts to claim a share of the advertising revenue their material attracts.