Excerpt from the speech referenced in the next post
The stated goal of Google's Book Search project is to make a copy of every book ever published and bring it within Google's vast database of indexed content. While Google says that it doesn't currently intend to place ads next to book search results, Google's broader business model is straightforward -- attract as many users as possible to its site by providing what it considers to be "free" content, then monetize that content by selling ads. I think Pat Schroeder put it best when she said Google has "a hell of a business model -- they're going to take everything you create, for free, and sell advertising around it."
To accomplish its book search goals, Google persuaded several libraries to give it unfettered access to their collections, both copyrighted and public domain works. It also entered into agreements with several publishers to acquire rights to certain of their copyrighted books. Despite such deals, in late 2004 Google basically turned its back on its partners. Concocting a novel "fair use" theory, Google bestowed upon itself the unilateral right to make entire copies of copyrighted books not covered by these publisher agreements without first obtaining the copyright holder's permission.