Google and AP Strike Content Licensing Deal

Google has entered an agreement to compensate the Associated Press for stories and photographs. Google suggested that the content will become the basis of a new product that will launch in the next several months. The as-yet-undefined product will complement the popular Google news offering. The Associated Press is a 160-year-old nonprofit news cooperative that is owned by U.S. news companies. AP reported 2005 revenues of US$654 million, of which roughly 14 percent is from online sources. Both parties signed nondisclosure agreements and terms were not disclosed. (Sources: AP, Boston Herald, AOL Money)

(Note: AP issued a correction: AP’s online revenue is 14 percent, not the 20 percent sourced from the original AP story. A correction has been made here to reflect the update from AP.)