There's a long discussion with Brewster Kahle of the Open Content
Alliance on this week's TWiT podcast, where (among other things), he
discusses scanning of books at libraries, and Microsoft's recent exit
from that effort.
In what will come as a great unsurprise to many here, it turns out how
Roy reported this was misleading.
Both Microsoft and Google have arrangements with the libraries that
specify what rights the libraries get to the scanned material.
Microsoft's agreement is much less restrictive. (He went so far as to
say Google is trying to lock up public domain material, and praised
Microsoft for trying to make the material more widely available).
Furthermore, when Microsoft cancelled their participation, they released
the libraries from the agreements, turning over all rights to the
libraries. They also donated all of the scanning equipment, so the
libraries can continue the work.