Google, Inc.
Type Public (NASDAQ: GOOG)
Founded Mountain View, California (1998)
Location Mountain View, California, USA
Key people Eric E. Schmidt, CEO/Director
Sergey Brin, Technology President
Larry E. Page, Products President
Industry Internet
Products List of
Google services and tools
Revenue $3.19 billion USD (2004)
Employees 4,989 (September 30, 2005)
Website www.google.com |
Google.com front page |
Google, Inc. (NASDAQ: GOOG) is a U.S. public corporation, initially
established as a privately held corporation in 1998, which designed and
currently manages the Internet Google search
engine. Google's corporate headquarters is at the "Googleplex"
in Mountain View, California and employs almost 5,000 workers. Dr. Eric
Schmidt, former CEO of Novell, was named the Chief Executive Officer when
co-founder Larry Page stepped down. The company's overview web page states
that "Google's mission is to organize the world's information and make it
universally accessible and useful."
History
Beginnings
Google began as a research project in January 1996 by Larry Page and
Sergey Brin, two Ph.D. students at Stanford. They developed the hypothesis
that a search engine based on analysis of
the relationships between Web sites would produce improved results over the
basic techniques then in use. (At the time, other
search engines ranked results essentially
based on how many times the search term appeared on a page.) It was
originally nicknamed BackRub because the system checked backlinks to
estimate a site's importance. (A small search engine called RankDex was
already exploring a similar strategy.) Convinced that the pages with the
most links to them from other highly relevant Web pages must be the most
relevant pages associated with the search, Larry Page and Sergey Brin tested
their thesis as part of their studies, and laid the foundation for their
search engine. Originally the
search engine used the Stanford website
with the domain google.stanford.edu (see the Internet Archive Wayback
Machine search for http://google.stanford.edu). The domain google.com was
registered on September 15, 1997. They formally incorporated their company,
Google Inc., on September 7, 1998 at a friend's garage in Menlo Park,
California.
In March 1999, the company moved into offices at 165 University Avenue in
Palo Alto, home to a number of other noted Silicon Valley technology
startups. Google received a big break in 1999 when one of the most popular
search engines, AltaVista, relaunched
itself as a user Web entry point, or portal. This unexpected change
alienated part of AltaVista's user base. Google quickly outgrew its
University Avenue home. After outgrowing two subsequent sites, the company
settled into a complex of buildings (referred to by some as "The
Googleplex") in Mountain View at 1600
Amphitheater Parkway, in 2003.
The Google search engine attracted a loyal
following among the growing number of Internet users. They were attracted to
its simple, uncluttered, clean design — a competitive advantage to attract
users who did not wish to enter searches on web pages filled with visual
distractions. This appearance, while imitating the early AltaVista, had
behind it Google's unique search capabilities. In 2000, Google began selling
advertisements associated with the search keyword to produce enhanced search
results for the user. This strategy was important for increasing advertising
revenue, which is based upon the number of "hits" users make upon ads. The
ads were text-based in order to maintain an uncluttered page design and to
maximize page loading speed. It also only cost a very small amount per click
to the websites that advertised this way. The model of selling keyword
advertising was originally pioneered by Goto.com (renamed Overture, and now
Yahoo! Search Marketing). While many of its dot-com rivals failed in the
new Internet marketplace, Google quietly rose in stature while generating
revenue.
U.S. Patent 6,285,999 describing Google's ranking mechanism (PageRank)
was granted on September 4, 2001. The patent was officially assigned to
Stanford University and lists Lawrence Page as the inventor.
In February 2003, Google acquired Pyra Labs,
owner of Blogger, a pioneering and leading weblog
hosting Web site. Some analysts considered the acquisition inconsistent with
Google's business model. However, the acquisition secured the company's
competitive ability to use information gleaned from blog postings to improve
the speed and relevance of articles contained in a companion product to the
search engine,
Google News.
At its peak in early 2004, Google handled upwards of 84.7 percent of all
search requests on the World Wide Web through its Web site and through its
partnerships with other Internet clients like Yahoo!, AOL, and CNN. In
February 2004 Yahoo! dropped its partnership with Google in order to provide
users at its site independent search results and to maintain their loyalty.
Google lost user share of the search market. Yet Yahoo!'s move highlighted
Google's own distinctiveness and today the verb "to google" has entered a
number of languages first as a slang verb and now as a standard word
meaning, "to perform a web search".
Google's declared code of conduct is "Don't Be Evil", a phrase which they
went so far as to include in their prospectus (aka "red herring" or "S-1")
for their IPO, noting "We believe strongly that in the long term, we will be
better served — as shareholders and in all other ways — by a company that
does good things for the world even if we forgo some short term gains."
Google's Halloween 2005 Logo
The Google site includes humorous features such as cartoon modifications
of the Google logo to recognize special occasions and anniversaries, known
as "Google Doodles". Not only may
decorative drawings be attached to the logo, but as well the font design may
mimic a fictional or humorous language such as the Star Trek Klingon and
Leet. The logo is notorious among web users for April Fool's Day tie-ins
and jokes about the company.
Analysts speculate that Google's response to Yahoo! will be to continue to
make technical and visual enhancements to personalized searches, using the
personal data that is gathering from Orkut,
Gmail, and Froogle to
produce unique results based on the user. Frequently, new Google
enhancements or products appear in its inventory. Products and demos
Google Labs, the experimental section of
Google.com help Google maximize its relationships with its users by
including them in the beta development, design and testing stages of new
products and enhancements of already existing ones.
Google's Halloween 2005 Logo
Original Hardware
The original hardware used by Google included:
- Sun Ultra II with dual 200MHz processors, and 256MB of RAM. This was
the main machine for the original Backrub system.
- 2 x 300 MHz Dual Pentium II Servers donated by Intel, they included
512MB of RAM and 9 x 9GB hard drives between the two. It was on these
that the main search ran.
- F50 IBM RS6000 donated by IBM, included 4 processors, 512MB of
memory and 8 x 9GB hard drives.
- Two additional boxes included 3 x 9GB hard drives and 6 x 4GB hard
drives respectively (the original storage for Backrub). These were
attached to the Sun Ultra II.
- IBM disk expansion box with another 8 x 9GB hard drives donated by
IBM.
- Homemade disk box which contained 10 x 9GB SCSI hard drives
Logo Evolutions
The Google logo has changed over the years. The following are the
official Google logos.
Late 1996 |
1998 - July 1999 |
July 1999 - Present |
Google is also known for its innovative holiday logos; see their logo
archive. A website has been created that relives these imaginative logos by
displaying them randomly on every page-load: Holiday Google.
The site logoogle contains images users have made about google
Etymology
The name "Google" is a play on the word "Googol", which was coined by
Milton Sirotta, nine-year-old nephew of U.S. mathematician Edward Kasner in
1938, to refer to the number represented by 1 followed by one hundred zeros.
As a further play on this, Google's headquarters are referred to as "the
Googleplex" — a googolplex being 1 followed by
a googol of zeros, and the HQ being a complex of buildings (cf. multiplex,
cineplex, etc).
The name has also been interpreted as a merging of the words "Go ogle",
though this is widely accepted to be coincidental. The term appears in James
Joyce's Finnegans Wake: "who thought him a Fonar all, feastking of shellies
by googling Lovvey". To "throw a googly" means to ask a difficult
or unanswerable question in British slang, a googly being a tricky ball in
the game of cricket. Chambers Twentieth Century Dictionary (1972) allows the
verb "to google" from this, and the phrase has come to be synonymous with
"to search for on the Internet".
Financing and IPO
The first funding for Google as a company was secured in the form of a
$100,000 check from Andy Bechtolsheim, co-founder of Sun Microsystems, made
out to a corporation which didn't yet exist. After a frantic few weeks, this
was topped up to give an initial investment of almost $1 million. Around six
months later, a much larger round of funding was announced, with the major
investors being rival venture capital firms Kleiner Perkins Caufield & Byers
and Sequoia Capital.
In October 2003, while discussing a possible IPO (Initial Public Offering of
shares), Microsoft approached the company about a possible partnership or
merger; no such deal ever materialized. In January 2004, Google announced
the hiring of Morgan Stanley and Goldman Sachs Group to arrange an IPO. That
IPO (one of the most anticipated in history) was projected to raise as much
as $4 billion. According to a banker involved in the transaction, the deal
would yield an estimated $12 billion market capitalization for Google.
On April 29, 2004, Google made an S-1 form SEC filing for an IPO to raise as
much as USD $2,718,281,828 (with a touch of mathematical humor as e =
2.718281828...). April 29th was the 120th day of 2004, and according to
section 12(g) of the Securities Exchange Act of 1934, "a company must file
financial and other information with the SEC 120 days after the close of the
year in which the company reaches $10 million in assets and/or 500
shareholders, including people with stock options. Google has stated in
its Annual filing for 2004 that every one of its 3,021 employees, "except
temporary employees and contractors, are also equity holders, with
significant collective employee ownership", so Google would have needed to
make its financial information public by filing them with the SEC regardless
of whether or not they intended to make a public offering. As Google stated
in the filing, their "growth has reduced some of the advantages of private
ownership. By law, certain private companies must report as if they were
public companies. The deadline imposed by this requirement accelerated our
decision." The SEC filing revealed that Google turned a profit every year
since 2001 and earned a profit of $105.6 million on revenues of $961.8
million during 2003.
In May 2004, Google officially cut Goldman Sachs from the IPO, leaving
Morgan Stanley and Credit Suisse First Boston as the joint underwriters.
They chose the unconventional way of allocating the initial offering through
an auction (specifically, a "Dutch auction"), so that "anyone" would be able
to participate in the offering. The smallest required account balances at
most authorized online brokers that are allowed to participate in an IPO,
however, are around $100,000. In the run-up to the IPO the company was
forced to slash the price and size of the offering, but the process did not
run into any technical difficulties or result in any significant legal
challenges. The initial offering of shares was sold for $85 a piece. The
public valued it at $100.34 at the close of the first day of trading which
saw 22,351,900 shares change hands.
Before Google initiated its initial public offering, Larry Page & Sergey
Brin faced legal action for giving Playboy an interview about themselves and
Google. The SEC (Security & Exchange Commission) forbids giving out
information pertaining to a company's specifications before an IPO is
launched.
After some initial stumbles, Google's initial public offering took place on
August 19, 2004. 19,605,052 shares were offered at a price of $85 per share.
Of that, 14,142,135 (another mathematical reference as √2 = 1.4142135...)
were floated by Google and 5,462,917 by selling stockholders. The sale
raised $1.67 billion, of which approximately $1.2 billion went to Google.
The vast majority of Google's 271 million shares remained under Google's
control. The IPO gave Google a market capitalization of more than $23
billion. Many of Google's employees became instant paper millionaires.
Yahoo!, a competitor of Google, also benefited from the IPO because it owns
2.7 million shares of Google. The company was listed on the NASDAQ stock
exchange under the ticker symbol GOOG.
On August 18, 2005 (one year after the initial IPO), Google announced that
it would sell 14,159,265 (a mathematical joke, see pi) more shares of its
stock to raise money. The move would double Google's cash stockpile to $7
billion. Google said it would use the money for "acquisitions of
complementary businesses, technologies or other assets".
Today
Since the IPO, Google's stock market capitalization has risen greatly and
the stock price has more than quadrupled. On August 19, 2004 the number of
shares outstanding was 172.85 million while the "free float" was 19.60
million (which makes 89% held by insiders). In January 2005 the shares
outstanding was up 100 million to 273.42 million, 53% of that was held by
insiders which made the float 127.70 million (up 110 million shares from the
first trading day). The two founders are said to hold almost 30% of the
outstanding shares. The actual voting power of the insiders is much higher,
however, as Google has a dual class stock structure in which each Class B
share gets ten votes compared to each Class A share getting one. Page says
in the prospectus that Google has "a dual class structure that is biased
toward stability and independence and that requires investors to bet on the
team, especially Sergey and me." The company has not reported any treasury
stock holdings as of the Q3 2004 report.
On June 1, 2005, Google shares gained nearly 4 percent after Credit Suisse
First Boston raised its price target on the stock to $350. On the same day,
rumors circulated in the financial community that Google would soon be
included in the S&P 500. (Source: Google Shares Rise on New Price Target.
L.A.Times. URL accessed on June 1, 2005.) When companies are first listed on
the S&P 500 they typically experience a bump in share price. On June 7,
2005, Google was valued at nearly $52 billion, making it one of the world's
biggest media companies by stock market value.
With Google's increased size comes more competition from large mainstream
technology companies. One such example is the rivalry between Microsoft and
Google . Microsoft has been touting its MSN Search engine to counter
Google's competitive position. Furthermore, the two companies are
increasingly offering overlapping
services, such
as webmail (Gmail vs. Hotmail), search (both online
and local desktop searching), and other applications (for example,
Microsoft's Virtual Earth competes with Google
Earth). Some have even suggested that in addition to an Internet
Explorer replacement Google is designing its own Linux based operating
system called Google OS to directly compete with Microsoft Windows. Rumors
of a Google browser are fueled by the fact that Google is the owner of the
domain name "gbrowser.com". This corporate feud is most directly expressed
in hiring offers and defections. Many Microsoft employees who worked on
Internet Explorer have left to work for Google. This feud boiled over into
the courts when Kai-Fu Lee, a former vice-president of Microsoft, quit
Microsoft to work for Google. Microsoft sued to stop his move by citing
Lee's non-compete contract (he had access to much sensitive information
regarding Microsoft's plans in China). The case is still in the courts.
While Google is the #1 search engine, the
company struggles to keep up with rivals such as the well known Yahoo.
Although Google and Yahoo differ greatly in the
services they
offer, Google is trying to redefine itself from an Internet search company
to an Internet media company, similar to Yahoo!. Google is trying to become
a jack of all trades for the Internet. They are foraying into other
businesses which other companies have recently dominated. On June 21, 2005
Google announced it has plans to release a pay service and a classified ads
service, to rival companies like eBay .
During the third quarter 2005 Google Conference Call, Eric Schmidt said, "We
don't do the same thing as everyone else does. And so if you try to predict
our product strategy by simply saying well so and so has this and Google
will do the same thing, it's almost always the wrong answer. We look at
markets as they exist and we assume they are pretty well served by their
existing players. We try to see new problems and new markets using the
technology that others use and we build."
Salaries
Prior to the IPO offering, typical salaries at Google were considered
within the industry to be quite low. For instance, some system
administrators earned no more than $33,000 — while $40,000 at that time was
considered to be low by Bay Area employment market levels. Nevertheless,
Google's excellent stock performance following the IPO has enabled these
early employees to be competitively compensated by participation in the
corporation's remarkable equity growth. In 2005 Google has implemented other
employee incentives such as the Founder's award, as well making higher
salary offers to new employees.
Beyond monetary compensation, Google's workplace amenities, culture, global
popularity, stellar prospects (relative to most Bay Area companies), and
strong brand recognition continues to attract far more applicants than there
are positions available. (It is estimated that less than one job offer is
made per thousand resumes submitted.) Google reportedly employs one in-house
legal recruiter just to assist the legal department in evaluating the high
volume of resumes from attorneys seeking to join the corporation.
A license plate seen in the Googleplex
parking lot
Management
Position: name, age, compensation in USD (as of June 2005)
- CEO: Eric E. Schmidt, 50, $1 see
- CFO: George Reyes, 51, $781K
- President of Technology: Sergey Brin, 31, $1 see
- President of Products: Larry E. Page, 32, $1 see
- Sr. VP of Worldwide Sales: Omid Kordestani, 41, $572K
- VP of Corp. Development, Secretary and Gen. Counsel: David C.
Drummond, 42, $776K
Founders Brin and Page reportedly earned $1 billion in 2004, but after
the IPO in Aug 2004, their compensation is reported in SEC filings annually.
Page, Brin, and Schmidt have all declined recent offers of bonuses and
increases in compensation by Google's board of directors. Institutional
Shareholder Services ranked Google's corporate governance dead last in the
list of members of the Standard & Poor's 500.
According to the Forbes 400 list (2005), the combined net worth of Larry
Page and Sergey Brin is $22 billion US. But due to the recent surge in stock
price (April 2005-June 2005), their net worth is significantly higher. When
recorded on the Forbes 400, Google's stock was around $111. In late 2005
Google shares were valued at $400. Page and Brin, however, had sold $2
billion before some of the largest stock gains.
Analysts
Research analysts covering Google Inc. See also GOOG: Star Analysts for
GOOGLE - Yahoo! Finance
- Mark Mahaney (Citigroup Investment Research)
- John Tinker (Thinkequity Partners)
- Michael Gallant (CIBC World Markets)
- Steve Weinstein (Pacific Crest Securities)
- Imran Khan (J.P. Morgan Chase)
- Heath Terry (Credit Suisse First Boston)
- Marianne Wolk (Susquehanna Financial Group)
- Nafi Bekteshi (SOS Group)
Technology
Google's
services are run on several server farms, each consisting of many
thousand low-cost commodity computers running customized versions of Linux.
While the company does not provide detailed information about its hardware,
it was estimated in 2004 that they were using over 60,000 Linux machines.
See Google platform for the details.
Corporate culture
Philosophy
Google is known for its relaxed corporate culture, reminiscent of the
Dot-com boom. Google's corporate philosophy is based on many casual
principles including: "You can make money without doing evil", "You can be
serious without a suit" and "Work should be challenging and the challenge
should be fun." A complete list of corporate fundamentals is available on
Google's Web site . The company encourages equality within corporate
levels. Twice a week there is a roller hockey game in the company parking
lot.
"Twenty percent" time
Every Google engineer is encouraged to spend 20 percent (20%) of their
work time on projects that interest them. Some of these end up as Google
services,
notably Adsense/Adwords
(which provide the majority of the company's revenue), as well as
Gmail, Google News
and Orkut.
Google's headquarters is called the Googleplex.
The lobby is decorated with a piano, lava lamps, and a real-time projection
of current search queries. The hallways are full of exercise balls and
bicycles. Each employee has access to the corporate recreation center.
Recreational amenities are scattered throughout the campus, and include a
workout room with weights and rowing machines, locker rooms, washers and
dryers, a massage room, assorted video games, Foosball, a baby grand piano,
a pool table, and ping pong. In addition to the rec room, there are snack
rooms stocked with various cereals, gummy bears, toffee, licorice, cashews,
yogurt, carrots, fresh fruit, and dozens of different drinks including fresh
juice, soda, and make-your-own cappuccino. After eating, people can relieve
themselves on luxurious digitally controlled toilets similar to
Japanese toilets.
Many people have suggested that after Google's IPO the corporate culture
will not be able to stay so "fun" and focused on the future. The
company may be required to answer to its new shareholders who may press the
company to reduce employee benefits and to focus on short term advances.
Also, it may be more challenging for the company to maintain a collegial
atmosphere when approximately 1,000 (30%) of the employees are
paper-millionaires. In a report given to potential investors, co-founders
Sergey Brin and Larry Page promised that the IPO would not change the
company's culture. Later Mr. Page said, "We think a lot about how to
maintain our culture and the fun elements."
In 2005, articles in The New York Times and other news sources began
suggesting that Google had lost its anti-corporate, no evil philosophy. The
New York Times article was headlined, "Relax, Bill Gates; It's Google's Turn
as the Villain" .
As of January 2006, the acting C.F.O. is Caitlin F. Andeerwood.
Google partnerships
On Sept 28 Google announced a partnership with NASA which would involve
Google building an R&D center at NASA's Ames Research Center. As reported by
SearchEnginejournal.com, NASA and Google were said to be planning to work
together on a variety of areas, including large-scale data management,
massively distributed computing, bio-info-nano convergence, and
encouragement of the entrepreneurial space industry. The new building would
also include labs, offices, and housing for Google engineers.
Google also has a partnership with Sun Microsystems to help share and
distribute each other's technologies . As part of the partnership Google
will hire employees to help the open source office program OpenOffice.org.
Google has an unknown partnership with the Mozilla Foundation. Google is
looking for software engineers to join them in collaborative development on
the Firefox browser. This is confirmed by a job listing posted on Google.
They also offer a download of Firefox with the Google Toolbar pre-installed.
Google's Acquisitions
2001
- Feb 2001: Deja (the Usenet archive, not the company) was acquired,
and was incorporated to become part of the re-launched Google Groups.
- Sep 2001: Google acquired Outride Inc.
2003
- Feb 2003: Google acquired Pyra Labs, a
weblogging provider and owner of Blogger.
- Apr 2003: Neotonic Software was acquired as part of Google's plan to
bring its CRM technology in house.
- Apr 2003: Applied Semantics was acquired for $102 Million.
- Sep 2003: Kaltix was acquired to develop and launch Google Personal.
- Oct 2003: Sprinks was acquired to enhance Google's
Adwords and AdSense
program.
- Oct 2003: Google acquired Genius Labs, another web logging provider.
2004
- Apr 2004: Ignite Logic was acquired.
- Jun 2004: Google made a $10M investment into partial ownership of
Baidu.
- Jul 2004: Picasa was acquired to provide
picture management
tools to
Blogger.
- Oct 2004: Keyhole was acquired to provide the core mapping
capabilities in Google Maps and
Google Earth.
- Sept-Dec 2004, Google revealed in its annual 10-K filing that it had
acquired 2 Silicon Valley start-up companies: ZipDash and Where2. The
technology provided by ZipDash was used to develop and launch Google
Ride Finder. Where2 was a mapping software provider.
2005
- Mar 2005: Web analytics
tools
provider Urchin Software
Corporation was acquired.
- May 2005: DodgeBall, a social networking software provider for
mobile devices, was acquired.
- Jul 2005: Google, in combination with Goldman Sachs, and the Hearst
Corp., invests a total of $100 Million into Current Communications Group.
- Jul 2005: Google announced in its Q2 quarterly conference call that
it had acquired Akwan Information Technologies as a part of its plan to
open an R&D office and expand its presence into Latin and South America.
- Aug 2005: Google acquires Android Inc., a software provider for
mobile devices
- September 28: both Google and Ames Research Center disclosed details
to a long-term research partnership. In addition to pooling engineering
talent, Google plans to build a 1-million square foot facility on the
ARC campus.
- Dec 2005: Google acquires a 5% stake in Time Warner's AOL.
Criticism and controversy
Copyright issues
A number of organizations have used the Digital Millennium Copyright Act
to demand that Google remove references to allegedly copyrighted material on
other sites. Google typically handles this by removing the link as requested
and including a link to the complaint in the search results.
There have also been complaints that Google's web cache feature violates
copyright. However, Google provides mechanisms for requesting that caching
be disabled (which Google respects; it also honors the robots.txt file which
is another mechanism that allows operators of a website to request that part
or all of their site not be included in search
engine results).
On June 2005, Google Watch revealed the details of a contract between the
University of Michigan and Google to create digitized copies of the
copyrighted materials stored at the University's library. This contract is
part of Google Print's effort to digitize millions of books and make the
full text searchable. There are claims that it is a violation of copyright
laws to use copyrighted material for profit by placing search ads beside the
search results of these digitized books. Also, Google is setting a new
precedent by making digital copies of copyrighted material on a wide scale
without explicit permission from copyright holders. Meanwhile, Google claims
that it is in compliance with all existing and historical applications of
copyright laws regarding books. The contract between Google and the U. of
Michigan does make it clear that Google will provide only excerpts of
copyright text in a search. The contract says that it will comply with "fair
use", an exemption in copyright law that allows people to reproduce portions
of text of copyrighted material for research purposes.
Dispute with Agence France Presse
In March 2005, Agence France Presse (AFP) sued Google for $17.5 million,
alleging that Google News infringed on its
copyright because "Google includes AFP's photos, stories and news headlines
on Google News without permission from Agence
France Presse." It was also alleged that Google ignored a cease and
desist order, though Google counters that it has opt-out procedures which
AFP could have followed but did not.
It is possible that AFP will make additional arguments in court that it has
not yet made in public, but currently, many pundits are confused by the
decision to sue because Google does not display the full
article on its site, provides a link to one of AFP's 600 online clients such
as Singapore's Channel NewsAsia (which presumably benefits AFP because more
people view the article and advertising), and because the articles are
available via the providers' websites regardless of Google's actions. It was
argued that had AFP wanted to prevent free use of its articles, it should
have asked its providers to require subscriptions rather than suing Google.
Additionally, "in 2002, a federal appeals court ruled that Web sites may
reproduce and post 'thumbnail' or downsized versions of copyrighted
photographs," so Google News' thumbnails are
likely legal. Still, AFP argues that the headline and first sentence of
an article constitutes the "heart" of the work and that reproducing it is
copyright infringement.
According to the Canada Free Press, "Google Inc. is now attempting to remove
all postings of Agence-France Presse material from its site, although AFP
spokesmen say that even if this is done, the lawsuit will continue... It
seems that the basis of the lawsuit is just the abstract notion of copyright
without any real damages to justify the action." The article concluded "It
would be a sad day for those who look to the Internet for news if AFP is
successful in limiting what Google can display... AFP's lawsuit, if
successful, is bound to have a major impact on how news is delivered on the
Internet."
The lawsuit's outcome will likely depend on whether Google can successfully
argue that its use of AFP's material constitutes "fair use" under copyright
law. Google could even argue that it "adds value" to AFP's news
without harming the French news wholesaler.
Lawsuit by Authors Guild
On September 20, 2005, the Authors Guild, a group that represents 8,000
U.S. authors, with a children's book author, and a former Poet Laureate of
the United States, filed a class action suit in federal court in Manhattan
against Google over its unauthorized scanning and copying of books through
its Google Library program. The lawsuit seeks damages and an injunction that
will prevent the company from continuing their very ambitious digitization
project. Arguments in the case will hinge around the interpretation of the
four factors of Fair Use.
Many commentators in the world of copyright law and technology were not
surprised by this development as The Authors Guild has also been involved in
attempting to make online publishers pay royalties to writers whose stories
appear in any number of online databases without their express consent. In a
concession to general concerns about the nature of their project, Google had
announced plans back in August that they would respect the wishes of
copyright holders who contacted the company to inform them that they did not
want their works included in this digitization project.
- Scout Report "Authors’ group files lawsuit against Google" Sept,
2005
- The Google Print Library Project: A Copyright Analysis - .pdf
- Washington Post Sept. 20, 2005 "Google library push faces lawsuit by
US authors"
Multinational corporation
Google is a multinational corporation, having offices in over a dozen
countries. In order to comply with the varying laws of these countries,
several versions of Google restrict very specific keyword searches.
According to American law, any copyright owner can require material to be
removed via the Digital Millennium Copyright Act, whereas under French and
German law, for example, hate speech and Holocaust denial are illegal.
Google complies with these laws by banning keyword searches related to these
terms. Google's Terms of Service allow it to comply with the laws of any one
country, providing information that was originated (or that Google stores)
in another country. Any data stored on Google is therefore subject to being
turned over to any country, including China.
China's Censoring
The People's Republic of China, whose human rights record has been widely
criticized by the international community, has in the past restricted
citizen access to popular search engines such as Altavista, Yahoo!, and
Google. The mirror search site elgooG has been
used by Chinese citizens to get around blocked content. This complete ban is
currently lifted. However, the government remains active in filtering
Internet content.
In the summer of 2005 Google's name became associated with commercial
contracts between the Government of China, Microsoft and Cisco Systems which
block access to websites using words like "democracy." Google has been
involved with the removal of specific sites that are blocked in China from
their Chinese news portal. The French news agency, AFP, reported that
Microsoft, Yahoo! and Google have all agreed to cooperate in censoring the
Internet from their China based sites by filtering out content objectionable
to the Chinese government. The list of forbidden words includes "democracy,"
"freedom," "human rights," and "Taiwan independence."
In October 2005, Blogger and access to the Google
Cache were made available in China; however, in December 2005, some Chinese
users of Blogger reported that their access to
the site was once again restricted.
Legal issues
Google's efforts to refine its database has led to some legal
controversy, notably a lawsuit in October 2002 from the company SearchKing
which sought to sell advertisements on pages with inflated Google rankings.
In its defense, Google stated that its rankings are its constitutionally
protected opinions of the web sites that it indexes. A judge subsequently
threw out SearchKing's lawsuit in mid-2003 on precisely these grounds.
In late 2003 and early 2004, there were rumors that Google would be sued by
the SCO Group over their use of the Linux operating system, in conjunction
with SCO's lawsuit against IBM over the claimed ownership of intellectual
property rights relating to Linux.
In May 2004, the Baltimore Sun interviewed Peri Fleisher, a great-niece of
Edward Kasner, the mathematician whose nephew coined the word googol, who
said Kasner's descendants were "exploring" legal action against Google due
to its name.
Google recently settled a patent infringement lawsuit with Yahoo! by issuing
2.7 million shares. Yahoo! had earlier alleged that Google's
AdSense program violated a patent held by
Yahoo!'s Overture unit. The settlement cost Google around $275 million which
resulted in the company posting a net loss in the third quarter of 2004.
Personnel issues
On August 18, 2005, former Google sales executive Christina Elwell,
promoted to national sales director at Google in late 2003, accused her
supervisor of discrimination against her when he terminated her after she
informed him of her pregnancy. After the loss of 3 of her quadruplets,
which she claimed was due to the stressful circumstances created by Google,
Elwell sued the company. She also refused an offer from Shona Brown, Google
Vice President of Business Operations, to reinstate her to a "low-level
operations position".
Partiality
In February 2003, Google banned the ads of Oceana, a
two-and-a-half-year-old non-profit organization, which was protesting the
environmental effects of a major cruise ship operation's sewage treatment
practices. Google claimed that their editorial policy states, "that Google
does not accept advertising if the ad or site advocates against other
individuals, groups, or organizations."
Offensive search results
In April 2004, Google received complaints that a search for "Jew" on its
site listed the anti-Semitic website Jew Watch at or near the top of the
list. Google responded that this was due to the content-neutrality of the
PageRank algorithm, and the fact that racists
used the specific word "Jew" (as opposed to "Jewish" or "Judaism") more
often than others.
As a reaction, some webloggers launched a Google
bomb to put the corresponding Wikipedia article at the top of the search
results for "Jew," which had succeeded for a time. As of
December 29, 2005, Jew Watch was holding the #1 result.
There is also an option for Google account users, who are logged in, to
remove offensive search results.
Privacy
Some have pointed out the dangers and privacy implications of having a
centrally located, widely popular data warehouse of millions of Internet
users' searches, and how under controversial existing U.S. law, Google can
be forced to hand over all such information to the U.S. government, or any
other government of a country which Google serves.
It has been claimed that Google infringes the privacy of visitors by
uniquely identifying them using cookies which are used to track Web users'
search history. The cookies possess notably distant expiration dates and it
is claimed users' searches are recorded without permission for advertising
purposes. In response Google claims cookies are necessary to maintain user
preferences between sessions and offer other search features. The use of
cookies with such distant expiration dates is not uncommon.
Some users believe the processing of email message content by Google's
Gmail service goes beyond proper use. The point is
often made that people without Gmail accounts, who
have not agreed to the Gmail terms of service, but
send email to Gmail users have their correspondence
analyzed without permission. Google claims that mail sent to or from
Gmail is never read by a human being beyond the
account holder, and is only used to improve relevance of advertisements.
Other popular email
services such
as Hotmail also scan incoming email to try to determine whether it is
unsolicited spam email (which Gmail also does).
Chris Hoofnagle, associate director of the Electronic Privacy Information
Center in Washington, DC warned that "As courts become more frequent
integrators of electronic records, there is a greater risk of Google ...
becoming a serious privacy threat."
Google's central PageRank system has been
criticized. Some, such as Daniel Brandt, calling it "undemocratic". Common
arguments are that the system is unfairly biased towards large web sites,
and that the criteria for a page's importance are not subject to peer
review. It must be stated in Google's defense that
PageRank is a fully automated system which is impartial insofar as it
knows no personal bias. However, it must also be stated that Google's system
relies on human oversight, and use of company names on
Adwords, or deletion of critical sites from
Google results (for example, sites critical of Scientology), is decided by
individual human beings according to company policy. It remains unclear
whether any process could assert the importance of a page in a way that
would draw less criticism than the current PageRank
system.
The system is also susceptible to manipulation and fraud through the use of
dummy sites, an issue which does, however, plague all search engines. See
Google bomb and Spamdexing.
Specific searches
For users searching for more specific results, at the top of Google pages
are additional tabs to more narrowly define a user's search results.
- Images: Allows the user to limit a search to images on the
Internet; the images are identified by Google by the image name saved on
the webpage and context information about the page.
- Groups: Allows the user to create, search and browse groups
for discussion.
- News: Brings the user directly to the
Google News search page, formatted
similar to news websites such as MSNBC or BBC News. The search page
provides the option for twenty countries. Google.com.au allows selection
criteria for Australia.
- Froogle: Allows the user to shop
online searching websites within a user specified budget. See
Froogle.
- Local: Searches for places (such as shops or other landmarks)
in a geographical area, and displays maps and driving directions. Maps
include road maps, medium-resolution satellite images, and "hybrid" maps
combining both. See also Google Maps.
Currently it provides full service only in the U.S., Canada, and the
U.K.
Earth: Allows the user to download a program to have a 3D version of
satellite pictures. See Google Earth.
- Desktop: Allows the user to search their computer for files,
folders, and emails. See Google Desktop.
- Talk: Allows users with Gmail
accounts to communicate with each other through instant messaging and
have online conversations. See Google Talk.
- Videos: Allows the user to limit a search to videos on the
Internet; Use Google to find reviews and showtimes for movies playing
somewhere near you. See Google Video.
- Blogs: Blog Search allows the user to only search blogs based
on RSS feeds. Results can be sorted by relevance or by date. Although it
allows you to search specific blogs, this feature is currently
malfunctioning.
- Scholar: Allows users to search some peer-reviewed, scholarly
journals. Non-peer reviewed material is also included in the index.
- Books: Allows users to search through books.
Clicking on the "More" tab at the top directs the user to even more
Google Services
such as Blogger, University Searches, Google
products in their Labs section, Help and Alerts.
Google Maps web site sample
April Fool's Day jokes
Google has a tradition of creating April Fool's Day jokes such as Google
MentalPlex which featured the use of mental power to search the Web. In 2002
they claimed that pigeons were the secret behind their growing
search engine. In 2004 it featured Google
Lunar which featured jobs on the moon and in 2005 a fictitious,
brain-boosting drink termed Google Gulp was announced. You can find other
pranks hidden between google's pages. In the languages list you can find the
Bork! Bork! Bork! version. Bork! is the mock Swedish of the Muppets Show's
Swedish Chef. There are also alternative languages available, such as
Klingon. Some people thought the announcement of Gmail
in 2004 around April Fools Day (as well as the doubling of
Gmail's storage space to two gigabytes in 2005) was
actually a joke.
See also
References
- Mahadevan, Jeremy (Nov. 16, 2005). "Googlicious". New Straits Times,
p. L12–L13.
- "What's the catch?" (Nov. 16, 2005). New Straits Times, p. L13.
Further reading
- David Vise and Mark Malseed (2005-11-15). The Google Story,
Delacorte Press. ISBN 055380457X.
- John Battelle (2005-09-08). The Search: How Google and Its Rivals
Rewrote the Rules of Business and Transformed Our Culture, Portfolio
Hardcover. ISBN 1591840880.
External links
Company websites
In the news
Other links
write about their experiences at Google
|