Early last year, adult entertainment website Perfect 10 filed a lawsuit against Google for displaying thumbnails and subsequent images from its website, claiming that a portion of its revenue came from selling thumbnails to mobile phone users. U.S. district judge Howard Matz found Google to be in violation of copyright laws but this week, that has all changed. A U.S. appeals court ruled that while Google did violate copyright laws, it did so involuntarily. A panel of three judges said they "reverse the district court's ruling and vacate the preliminary injunction regarding Google's use of thumbnail versions of Perfect 10's images. We conclude that the significantly transformative nature of Google's search engine, particularly in light of its public benefit, outweighs Google's superseding and commercial uses of the thumbnails in this case."
News source: DailyTech