GrepLaw points to the news that the thumbnail images that often accompany stories on Google News have been found to violate copyright law in that country. Apparently, thumbnail images aren't considered fair use. I imagine it wouldn't be all that difficult for Google to simply remove images from their German news site - but it's another example of bad copyright law. These images only help to drive more traffic to the sites. The publisher protesting using thumbnail images in this way are shooting themselves in the foot.
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