thomst writes "David Kravets of Wired's Threat Level blog reports that McGraw-Hill, Pearson Education, Penguin Group, John Wiley & Sons and Simon & Shuster have struck a deal to end those companies' lawsuit against Google for copyright infringement over its Google Books search service. Kravets reports that Andi Sporkin, a spokesperson for the publishers, has said they've 'agreed to disagree' on Google's assertion that its scanning of books in university libraries (and making up to 20% of the scanned content available in search results) was protected by the fair use defense against copyright infringement. The terms of the deal are secret, but the result is that the companies in question have dropped their lawsuit against Google. However, the Authors Guild lawsuit against Google on the same grounds is still stuck in the appeals process, after U.S. District Judge Denny Chin rejected a proposed settlement of the suit in 2011, on the grounds that its treatment of so-called 'orphaned works' amounted to making new copyright law — a power he insisted only Congress could exercise."
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