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they are def taking "fair use" a bit far by hosting the images and selling memberships while showing/hosting copyrighted material as "examples".
Just to clarify they arent actually hosting the "end product" ( as far as i know ) just the xamples, much in the same fashion google images does.. the difference is how they sell the memberships in conjunction with those displays.
I dont think nearly as many people would be pissed off if they simply offered guba for what it is , but the whole "selling" part of guba is the ability to search for copyright material and see it before you buy..
If they simply sold it as a program to access usenet easier , they would have no buyers or alot less anyways. By hosting and displaying copyright material as "examples" of what you will get when you buy a membership , it makes it an easy sell .
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