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Media evolution, of course, does claim casualties. But most often, these are means of distribution or storage, especially physical ones that can be transformed into digital bits. Photographic film is supplanted, but people take more pictures than ever. CD’s no longer dominate, as music is more and more distributed online. “Books, magazines and newspapers are next,” predicts Nicholas Negroponte, founder of the M.I.T. Media Lab. “Text is not going away, nor is reading. Paper is going away.”

Amazon, maker of the popular Kindle e-reader and one of the biggest book retailers in the country, will have the exclusive rights to sell electronic editions of “The 7 Habits of Highly Effective People,” and a later work, “Principle-Centered Leadership.” Mr. Covey also plans to gradually make other e-books available exclusively to Amazon, which will promote them on its Web site.

The move promises to raise the already high anxiety level among publishers about the economics of digital publishing and could offer authors a way to earn more profits from their works than they do under the traditional system.

Many authors and agents say that because the contracts for older books do not explicitly spell out electronic rights, they reside with the author. Big publishing houses argue that clauses like “in book form” or phrases that prohibit “competitive editions” preclude authors from publishing e-books through other parties.

Advocates of open access to orphan works cheered the rejection of the settlement, saying it could pave the way for legislation that would let anyone — not just Google — use the books..

“If Congress can wake up to the importance of this issue, there’s a good chance they will pass orphan books legislation, and they will do so in the interest of the general public, not favoring any enterprise,” said Robert Darnton, director of the Harvard University Library