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I don't agree with all his lawsuits, but this one has a little merit and is one that will be in the courts with other companies as well.
Google caches your page. Meaning Google is storing a copy of your webpage and images on their servers. Not sure what your definition of infringement is.
They are also just taking images and storing thumbnails on their server. I know it might not be much, but over time, how many people will just run image searches and forget about the paysites.
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