The settlements requires Google to obtain content owners' permission before publishing snippets for in-print books, although pages of text from out-of-print will still be available. Unfortunately for copyright scholars, this part of the settlement precludes a court decision about whether such snippets constitute "fair use"--a subject that has inspired a great deal of debate since Google Books launched in 2004 (see here for comments from the pro-fair use crowd (check out the video!), here for an argument that more legislation is needed in this area, and here and here for a more detailed analysis).
Here's the full story, including more details about the settlement. Google's press release about the deal can be found here.
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