In case you haven't been following the Google v. Perfect 10 court case, Google scored a partial victory yesterday in a case that is likely to have major implications for the evolution of copyright law online. In a 2004 lawsuit, porn merchant Perfect 10 accused Google of infringing its copyrights in two ways: by displaying thumbnails of its images in its search results and by framing third-party web sites that contain full-size copies of its images when the user clicks on a thumbnail.
http://arstechnica.com/news.ars/post...-fair-use.html