A Clash Across Europe Over the Value of a Click

PARIS — Google got rich by selling a simple proposition: The links it provides to other Web sites are worth a lot of money, so much that millions of advertisers are willing to pay the company billions of dollars for them.

Now some European newspaper and magazine publishers, frustrated by their inability to make more of their own money from the Web, want to reverse the equation. Google, they say, should pay them for links, because they provide the material on which the Web giant is generating all that revenue.

In several of the biggest European countries, they are close to getting their way.

A bill working its way through the German Parliament would enable publishers to collect a fee from Google and other search engines and news “aggregators” when they display excerpts from news articles alongside links to newspaper and magazine Web sites.

This week, President François Hollande of France threatened Google with similar legislation unless it came up with a way to compensate news sites by the end of the year. Last week, publishers in Italy said they would also lobby for such a law.

But Google so far is standing its ground. Already facing possible sanctions from European antitrust and privacy regulators, Google says that having to pay for links could threaten its “very existence.”

And it warned that the demand for money could backfire. If Google had to pay up, it “would consequently be forced to stop indexing the French sites,” Google wrote in a “position paper” it sent to the French government. Because 30 percent to 40 percent of the traffic on French news sites comes from Google’s links, the company’s threat is not an idle one.

Google said such laws would undermine its commitment to an open Internet and the free flow of information. It would also invert the company’s main business model. A majority of the company’s $38 billion in annual revenue comes from the sale of “sponsored links,” which appear alongside free search results. Google also sells advertisements on behalf of outside partners, including news sites, and shares revenue with them.

European publishers say their existence is even more precarious, unless they can start to generate more money from their Web sites and other digital products, like mobile applications. While advertising revenue continues to rise at Google, it has flattened out or is even falling at many European online publications.

“We effectively feed the search engine and the algorithm, constantly giving them fresh content, content that you can rely on, because it’s checked and it’s accurate,” said Nathalie Collin, the head of the I.P.G., an organization of French newspaper and magazine publishers. “This is why they can sell advertising.”

Mr. Hollande appears to agree with them. In a meeting with Eric E. Schmidt, the executive chairman of Google, at the Élysée Palace this week, the president “expressed his desire that negotiations between Google and news publishers begin rapidly and conclude by the end of the year,” his office said in a statement.

Mr. Hollande “stressed that dialogue and negotiation between partners appeared to him to be the better option, but that if necessary, a law could be implemented on this question, following the example of Germany.”

In a statement, Google played down talk of an ultimatum, saying Mr. Schmidt had “been to France many times to meet government officials and discuss how the Internet can help create jobs as well as export French culture globally.”

The German proposal cited by Mr. Hollande would create a so-called ancillary copyright, protecting online news content and regulating secondary uses of it, including the snippets that search engines and aggregators like Google News display to detail links to other sites.

Business users, like Google, would have to pay royalties in order to display news publishers’ material, even short excerpts. A collecting society, like the agencies that gather royalties on behalf of musicians, would collect the payments and distribute the money owed to publishers.

Big Sean & E-40 Clash For Their Cities: "[You] Must Be High Off Bath Salt"

Tuesday, Oct 23, 2012 11:20AM

Written by Cyrus Langhorne

The World Series trash talk has officially begun as West Coast rapper E-40 has told Detroit-bred emcee Big Sean his San Francisco Giants will beat the Tigers in the best of seven match-up.

Although he respects the city of Detroit, E-40 let the world and Big Sean know the 2010 World Series champs are back for more.

"Let me make my self clear! I love the city of Detroit like I love the bay but my SF Giants gone beat that aaasssss!!!," he tweeted Monday (October 23) night moments before the Giants won a Game 7 after rallying from a 3-1 series deficit to beat the St. Louis Cardinals.

"Hey @BigSean you know i love yo city my nig but me & my @SFGiants Finna " WIN THIS THANG BREH ""

"Lol @BigSean you seen that cold demonstration we put down! This the Yay & I ain't talkin bout Kanye ha ha!" (E-40's Twitter)

Standing behind his Detroit Tigers, Sean downplayed E-40's proclamation.

"U must be high off bath salt RT @E40: Hey @BigSean you know i love yo city my nig but me & my @SFGiants Finna " WIN THIS THANG BREH "" (Big Sean's Twitter)

Last night, St. Louis' Nelly congratulated 40 after seeing his team fall to the Giants.

"Congrads to San Fran !!!hats off they did they thing!!!congrads og @E40 go gettem!!!!!!"

"Wtf they beat us!no hate in my blood!!i played sports allmy life wen u get out played u give it up!we choked #fact so what!!cya #nextyear" (Nelly's Twitter)

The Detroit Tigers are expected to have a slight advantage of winning the World Series.

The early odds at Las Vegas sportsbooks suggest the Tigers have a 60 percent chance of winning the World Series, said RJ Bell, president of handicapping information website Pregame.com. Detroit is a -160 money line favorite, meaning a winning $160 wager would return $100. The Giants opened at +140, so a winning $100 bet would yield a $140 profit. (SF Gate)

The World Series is slated to start Wednesday, October 24th night in San Francisco.