I listened to a recent podcast discussing the copyright issues that were being raised around Google Books. Google, attempting to amass the largest library in existence (larger than the library of Congress) is scanning in works that for the most part are still under copyright. Google has cited that the library is meant for educational purposes for the online community, and that by providing links to purchase the books, Google Books does not infringe on copyright laws due to fair use.
The problem with this is that Google is not getting permission to put these works online. They are simply sending email to the authors informing them that their works are online and if they wish to not have them included in Google books, than they should notify Google.
Google has been taken to court by the Association of American Publishers and the Authors Guild. Many people believe that the settlement will apply copyright regulations of the film industry, to the publishing industry. These regulations will most likely make it so authors, who before would quote other authors, would now have to worry about copyright laws. Essentially it will make the industry as a whole, a much more regulated, much less marketplace of ideas focused place.