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Google crawls websites, and downloads the images to their servers along with the related metadata. These images are then presented to the user when searching Google for related images.

If the owner has a copyright notice up on the website, how can Google legally host this image copy without permission?

Would the content owner be able to claim damages for loss of profit due to lost advertising views?

All in a theoretical sense; I'm just interested.

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up vote 9 down vote accepted

See Perfect 10, Inc. v., Inc.. The use of image thumbnails as part of a search engine is transformative and fair use.

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