According to Larry Lessig's blog, Google has been sued.
"Google has been sued by the Authors Guild, and a number of individual authors. This follows similar threats hinted at by the American Association of Publishers. The authors and the publishers consider Google’s latest fantastic idea, Google Print — a project to Google-ize 20,000,000 books — to be “massive copyright infringement.” They have asked a federal court to shut Google Print down."
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