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As part of its Library Project, Google proposed to digitize books in the collections of several major libraries, index them in its search engine (http://www.google.com), and allow searchers to view 'snippets' of the digitized books. Google's proposed reproduction, distribution, and display of copyrighted books was not authorized by the rights holders, who alleged that the Google Library Project infringed their copyrights. Google's counterarguments-that allowing rights holders to 'opt out' of having their books digitized or indexed keeps its proposed uses from being infringing, or that, if found to be infringing, its proposed uses are fair -- -raise important questions of first impression about reproduction and fair use under copyright law. Namely, does an entity engaged in unauthorized digitization and indexing avoid committing copyright infringement by offering rights holders the opportunity to request removal or exclusion of their content. And, assuming unauthorized indexing and display of 'snippets' are fair uses, can digitization claim to be a fair use on the grounds that apparently prima facie infringing activities that facilitate legitimate uses are fair uses. Several lawsuits that could help to answer these questions, at least for purposes of U.S. law, have been filed. Although the U.S. District Court for the Southern District of New York is presently considering whether to approve a proposed settlement agreement in a class action suit by authors, pictorial rights holders filed a separate class action suit against Google in that court on April 7, 2010. Even assuming both lawsuits are eventually settled, future digitization and indexing projects could raise similar questions. This report provides background on the Library Project, legal issues raised by digitization and indexing projects, and the status of the litigation over the Library Project.