John Battelle gets an update from a Google rep:
Because we don’t own this content, over the years we’ve come up with three primary principles to ensure that we respect content owners and protect their rights:
* we respect copyright;
* we let owners choose whether we index their content in our products;
* we try to bring benefit back to content owners by partnering with them.
Battelle's book is an excellent review of Google history and strategy -- recommended reading.
Source: John Battelle's Searchblog: Google Clarifies Philosophy Re: Content
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