Cyrus Farivar, ArsTechnica.com; Google Books hasn't cost authors a dime, company says:
"On Friday, Google filed for summary judgment in the Google Books case against the Authors' Guild, renewing its argument that the entire project constitutes fair use. That company argues therefore that it does not need permission from authors in order to scan substantial portions of their work...
More substantially, Google argues that Google Books is a transformative work, and that the company "copied no more of the books than was necessary to create a searchable index, and displays no more of the works than is necessary to allow readers to determine whether the book might be of interest to them."
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