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They always kick and scream when dragged into digital age.

It's really true. I didn't realize the Author's Guild also decided to separately sue the university libraries as well, even though (as far as I know) the libraries' use was going to be far more limited (students and faculty only, and only to get you to books the libraries already provide) and fair use is even stronger for educational uses:

https://www.eff.org/deeplinks/2011/09/no-authors-have-been-h...

I don't understand why Google wouldn't have to pay for at least one copy of each book they index.

They probably paid for it already, their issue is the use of it and availability. As most copyright on the book mention that no reproduction should ( even partial ) should be made without the publisher or author approval.

This is exactly the arguments to apply in Padmapper vs Craigslist case.

Fair Use Dejà Vu