A New York Times story from last week:
Several major research libraries have rebuffed offers from Google and Microsoft to scan their books into computer databases, saying they are put off by restrictions these companies want to place on the new digital collections.
The research libraries, including a large consortium in the Boston area, are instead signing on with the Open Content Alliance
The key issue is the terms of Google & Microsoft deals that prevent making the scanned material available to other commercial search services. Google pays the scanning costs (estimated by NYT to be $30 per book) whereas the libraries have to share the costs if they go with OCA.