While Google’s book scanning project has brought much criticism, Amazon’s newly-announced book-scanning project pleases authors and publishers, spreads around the money for everyone, and does the right thing for readers.

Like Google’s, Amazon’s plan will scan copyrighted books and let readers search through them. Where it differs is that they will offer paid online access to parts or all of the book, with the payment depending on the book, and how much of the book someone wants.

There’s also an option to buy the physical book, and caccess the full text of the book online as well. This keeps everyone happy, because copyright holders are paid fairly for their works. Breaking up books into parts is something like the iTunes model, where individual tracks can be purchased, rather than buying an entire album.

Google displays text ads by their books. Why not share this revenue with authors and publishers?

Even so, Google’s plan is being torn apart by legal battles - and rightfully so. The Association of American Publishers and the Authors Guild are both suing Google, with some librarians supporting them as well.

Amazon’s efforts could quickly make them the best source for getting book content online. They already have their own search engine (A9) - and while it’s powered by Google, it has its own features, too.

What’s interesting about Amazon’s plan is that it could allow individual publishers to get compensated, too. And Random House has announced their plan to sell portions of its books online. While Google is losing its war, its less-arrogant competitors are creating smarter ways to give people online access to books. Google should — and will — pay attention.