Last fall, Google announced a revised book settlement had been reached between Google, Inc., the Authors Guild, and the Association of American Publishers. These parties collectively filed a revised settlement with the Clerk for the U.S. District Court for the Southern District of New York in mid-November 2009. (The filing occurred just minutes before the court-imposed Midnight deadline.)
As for what happens next, who knows. The case awaits its third federal judge, since the previously presiding Judge Chin was appointed to the appellate court and the first judge to hear the case, John Sprizzo, passed away.
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