“The settlement would alter the landscape of copyright law, for millions and millions of rights holders of out-of-print books,” Peters said. “It would flip copyright on its head by allowing Google to engage in extensive new uses without the consent of the copyright owner–in my view, making a mockery of Article One of the Constitution, that anticipates that authors shall be granted exclusive rights.”

The settlement, as Peters sees it, will allow Google (GOOG) to profit from the work of others without prior consent. “It could affect the exclusive rights of millions of copyright owners, in the United States and abroad, with respect to their abilities to control new products and new markets, for years and years to come,” she said. “In essence, the proposed settlement would give Google a license to infringe first and ask questions later, under the imprimatur of the court.”

One of the more blistering attacks on the deal to date, especially given its source: The nation’s top copyright official. But Google nevertheless dismissed it as unfounded: “We think the settlement is legal, and we think it is structured well within the guidelines of what you can do in a class action settlement,” David Drummond, Google’s chief legal officer, said during the hearing. “It certainly is not usurping Congress’s authority to do whatever it wants.”

A typically arrogant response from Google, though the company does appear to be conceding a bit of ground in the face of widening opposition to the deal. Responding to Peters’s criticism and claims that the deal will essentially grant Google a de facto monopoly over out-of-print books, Drummond said the company plans to make those works available to any book retailer.

“For the out-of-print books being made available through the Google Books settlement, we will let any book retailer sell access to those books,” Drummond told the committee. “Google will host the digital books online, and retailers such as Amazon, Barnes & Noble or your local bookstore will be able to sell access to users on any internet-connected device they choose.”

Sadly for Google, that conciliatory gesture did not go over well with critics of the deal. “The Internet has never been about intermediation,” Paul Misener, Amazon’s vice president of public policy, said of the company’s offer. “We are happy to work with rights holders without anyone else’s help.”

The Internet Archive’s Peter Brantley was even more disdainful. “I fail to see what’s really new here,” he told the Los Angeles Times. “It’s like Macy’s telling Sears, ‘You can sell Macy’s clothing.’ There’s no fundamental change of the conditions under which Macy’s acquires those clothes. Google remains in control.”

“There’s something I keep hearing, and I don’t think I’d rank it as high as a rumor, but it’s an interesting story that I keep hearing, that for awhile, trucks loaded with books would arrive at a loading dock on the Apple campus, and offload big, big, big, big, huge loads of books, and then the trucks would leave empty. And Apple does not have a 100,000-book employee library there on the Apple campus. So one is prone to believe that they’re doing something with these books, such as turning them into text for some purpose we can only guess at. There’s been a long-standing rumor that Apple has been silently preparing to open a bookstore on the iTunes store, and they want to make sure that they have a very large stock of electronic titles when they do open.”

Interesting, no? Especially in light of these new reports about 10-inch touchscreen devices. Could Apple be developing a new souped up e-book reader–a TouchBook, if you will? Something on which you could read books (in color), watch movies, surf the Web and create and edit documents? Something that would upend and redefine the e-book sector as we know it? And are the mysterious “books” to which Ihnatko refers really books and not the device themselves…

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• Coming Soon From Apple: Big Touch?
• iTablet: Apple’s Killer App for Higher Ed

Unfazed by a market littered with the shattered remains of previous online wine retailers, Amazon (AMZN) is expected to begin selling by early October. Which is great news for direct-to-consumer wine sellers, who are certain to benefit from Amazon’s support. “Amazon isn’t the first company to sell wine over the Internet, but they have a lot of pull in the online market as the world’s largest online retailer,” Terry Hall of The Napa Valley Vintners Association told the E-Commerce Times. “That’s the exciting part. Consumers will get access to all those wines. It gives consumers a greater choice in what they can purchase, and gives wineries another venue to get their products out to consumers.”