The LA Times reported:

‘If all the newspapers in America did not allow Google to steal their content for nothing, what would Google do?’ [Same Zell] muses.

Not surprisingly, the blogging community went up in arms (1, 2, 3) with a resounding “Google is not stealing content” response. I think the responses represent the attitude problem that permeates the New Media world. I wasn’t at the Zell presentation, but I would wager that Zell is referring to the possibility of content licensing consortiums (CLCs) for the newspaper industry.

Reading through some of these responses, I found another great snippet of ill-informed entitlement:

Google moral of the story? Lawsuits ARE the way to pull Google’s very large financial purse strings!

Google has done a fantastic job building their search and advertising product off of freely supplied index-able web data; but online newspaper/magazine, video & audio content is protected by copyright. If Google settled with the AFP (and AP) aren’t they admitting to stealing content and the need to license that content from these associations? The answer is YES and the key is:

With the other major Internet players like AOL, Yahoo or MSN, [The AFP] have been licensing our content to them for years and years

Additionally, the argument that “Google does not make money off of Google News” is not correct. Sure, Google doesn’t place ads on the Google News page, but it is supplying a free service which creates a portfolio of services that keep users coming back to the Google platform.

Google News Provides a Value-Add for Newspapers, but it Walks a Fine Line

Google’s settlement with the AP and the AFP reveals that it would rather pay for content than face a full lawsuit. Zell is onto the CLC argument and if I were Google, I would fear the power of a $59 billion industry. I agree that Google improves newspaper article search-ability, but it needs to admit content has value so everyone can work together.

It is in Google’s best interest to work with the newspaper industry, because pretty soon a lot of large competitors and content providers will band together to better enforce copyright protection and licensing standards.