59 : The Global eBook Market: Current Conditions & Future Projections Google In 2004, Google Inc. (NASDAQ: GOOG) introduced book searches of full texts and, in order to increase the amount of digitized books available for such a search, an initiative to digitize signi cant numbers of printed books from public and university libraries. Labeled initially Google Book Search, Google Print, and Google Library Project, all these activities are today combined under the label of Google Books. As of March 2012, over 20 million books have been scanned, Google reports. As early as 2005, a controversy emerged between Google and authors’ as well as publishers’ associations and individual publishers in the US and overseas over the inclusion of “snippets” of copyrighted works. After seven years of litigation and a rst settlement rejected in 2011 by a New York court, an agreement has been reached between Google and the American Association of Publishers as of October 4, 2012. The agreement o ers US publishers the option to either withdraw titles under copyright and scanned by Google in libraries, or to keep them in Google’s program, and receive in return a digital copy, and permission to commercially use the scan. Furthermore, users can view up to 20 percent of a title and, provided the publisher’s consent, purchase it through the Google Play shop. The settlement is expected to make available several millions of titles scanned by Google (Publishers Weekly, October 4, 2012). Related litigation between Google and several French publishers, including Hachette, Albin Michel, Flammarion Gallimard and La Martiniere have been settled in out-of- court agreements in the meantime (Livres Hebdo, September 7, 2011). While Google’s ambition with regard to books started at searching and cataloging them based on a full-text search and earning revenues from customized advertis- ing in the search results, books have started to be included in its digital multimedia distribution service, branded Google Play, which includes options for pur- chases via Google (or, in the case of books, various other online shops) as digital downloads as well as through In October 2009, B&N introduced its eReading device branded as NOOK, the rst Android-based eReader. One year later, Barnes & Noble launched NOOK Color, the rst full-color touch Reader’s Tablet. In 2011, Barnes & Noble introduced NOOK Simple Touch, a full touchscreen device, followed by NOOK Tablet. This spring, Barnes & Noble introduced NOOK Simple Touch with GlowLight, the world’s rst E Ink Reader that enables reading in the dark. And in September, Barnes & Noble launched NOOK HD, the lightest and highest-resolution 7-inch tablet, and NOOK HD+, the lightest full HD tablet. The company also announced the premiere this fall of NOOK Video. Barnes & Noble has an estimated 27% market share of the U.S. ebook market and a catalog of more than 3 million titles in its NOOK Bookstore. In August 2012, Barnes & Noble announced it was bringing its NOOK and digital bookstore to the UK through a new www.nook.co.uk online storefront. This marks the rst time the company is expanding its busi- ness internationally. Barnes & Noble has formed partner- ships with several British retailers, including John Lewis, Dixons, Sainsbury’s, Waitrose, Blackwell’s, Foyles and Argos, to sell NOOK HD, NOOK HD+, and E Ink devices. The company has also opened its European headquar- ters in Luxembourg, headed by Patrick Rouvillois, Managing Director – International. Recently, Barnes & Noble and Microsoft announced the completion of their previously announced strategic partnership in NOOK Media LLC, a recently formed Barnes & Noble subsidiary and a enterprise in the emerg- ing digital reading and digital education markets. NOOK Media LLC comprises the digital and College businesses of Barnes & Noble and will continue to have a close relationship with Barnes & Noble’s retail stores. Microsoft made its $300 million investment in NOOK Media LLC at a post-money valuation of $1.7 billion in exchange for an approximately 17.6% equity stake, with Barnes & Noble owning the remaining shares. Barnes & Noble also received a $204 million investment from Liberty Media in August 2011.