(posted by Peter Hirtle)
Licensor and Licensee agree to maintain the confidentiality of any data relating to the usage of the Licensed Materials by Licensee and its Authorized Users. Such data may be used solely for purposes directly related to the Licensed Materials and may only be provided to third parties in aggregate form. Raw usage data, including but not limited to information relating to the identity of specific users and/or uses, shall not be provided to any third party.
Similarly, SERU, Shared E-Resource Understanding, has this to say on confidentiality of user data:
The bottom line: Google is more than compliant with current library standards for 3rd-party privacy protection. EFF argues that "Given the important free expression interests at stake and the long history of protecting reader privacy by libraries and bookstores, readers need a durable guarantee of protection enforceable by a court." No library has been demanding such a guarantee before now. One has to wonder if the current criticism of Google wouldn't be better directed at libraries and their privacy requirements when working with outside vendors.