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Judge dismisses challenge to Google book digitization
by Staff Writers
New York City (AFP) Nov 14, 2013


Apple insists pays full share of taxes in Italy
New York City (AFP) Nov 14, 2013 - US tech giant Apple said Thursday that it fully pays the taxes it owes everywhere, and was confident that a tax evasion probe in Italy would find it in compliance.

"Apple pays every dollar and euro it owes in taxes and we are continuously audited by governments around the world," an Apple spokeswoman said in an email to AFP.

"The Italian tax authorities already audited Apple Italy in 2007, 2008 and 2009 and confirmed that we were in full compliance with the OECD documentation and transparency requirements. We are confident the current review will reach the same conclusion," she said.

Apple is under investigation in Italy for allegedly failing to declare over 1.0 billion euros ($1.35 billion) to the tax man, Italian media reported Wednesday.

Milan prosecutors have accused the iPhone and iPad maker of hiding 206 million euros in 2010 and 853 million euros in 2011, the magazine L'Espresso said on its website.

Apple's Italian subsidiary is accused of booking some of its profits through Apple Sales International (ASI), an Irish-based subsidiary -- thereby reducing its taxable income in Italy, the weekly reported.

The Italian news agency Ansa, citing judicial sources, said investigators have visited Apple's Milan offices and two people were being investigated.

The multibillion-dollar California-based technology giant and other multinational US companies have been under fire in the US Congress as lawmakers accuse them of using Irish subsidiaries to dodge taxes.

Senators Carl Levin and John McCain held a hearing in May that examined offshore profit shifting and tax avoidance by Apple through the use of three Irish subsidiaries that claimed they were not tax residents anywhere, saving tax on $44 billion of non-US income.

A US judge Thursday dismissed a long-running lawsuit challenging Google's huge book digitization project, ruling that the scanning of millions of books is not copyright infringement.

Judge Denny Chin dismissed the case which dates back to 2005, saying Google's project is "fair use" under copyright law and "does not supersede or supplant books because it is not a tool to be used to read books."

Plaintiffs, led by the Authors Guild, had argued that Google's "Library Project" violated the rights of authors by scanning works without obtaining approval from the authors.

The Authors Guild had also argued that Google's objectives were purely commercial in that the main goal in the endeavor is to boost use of its search engine, which generates advertising revenue.

But Chin rejected most of the Guild's arguments in handing the tech giant a sweeping ruling.

Chin concluded that Google's use of the copyrighted works is "highly transformative" in that it enables readers, scholars and others to find out about new books and permits book text to be transformed "for purposes of substantive research, including data mining and text mining... thereby opening up new fields of research."

While Chin acknowledged that Google is a for-profit entity, he noted that Google does not sell the scans of the books or the snippets or "engage in the direct commercialization of copyrighted works."

While Google enjoys some commercial benefits, "the fact is that Google Books serves several important educational purposes," the judge said.

The Authors Guild did not immediately respond to a request for comment.

Google hailed Thursday's ruling.

"This has been a long road and we are absolutely delighted with today's judgement," a Google spokesperson said.

"As we have long said Google Books is in compliance with copyright law and acts like a card catalog for the digital age giving users the ability to find books to buy or borrow."

The decision was also praised by the Computer and Communications Industry Association, whose members include Facebook, Microsoft, Samsung and other technology companies.

"This ruling is a vindication for transformative technologies online," said Matt Schruers, CCIA's vice president for law and policy.

"Judge Chin's opinion makes unmistakably clear that the public's access to revolutionary tools like Book Search, which advance research and understanding, and expand access to underserved populations, should not be limited by formalistic objections to scanning and indexing."

Thursday's ruling is the latest twist in a lengthy legal saga that included a proposed settlement between Google and authors that was rejected by Chin in 2011 in part because it was found too generous to Google. Chin subsequently granted class-action status to plaintiffs, while rejecting a previous Google effort to dismiss the case.

In July 2013, an appeals court directed Chin to rule on the "fair use" issue and nullified his order for class-action status. Thursday's ruling focused on whether Google's function was "fair use" that entitled it to an exemption from copyright law.

Google has scanned more than 20 million books so far in the project. Books in the public domain -- without current copyrights -- are made available online to the public for free. For copyrighted books Google offers a searchable database that displays snippets of text.

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