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The judge ruled fair use, essentially.
I agree with the judge, and I think the Authors' Guild has been rather... quixotic.
US Circuit Judge Denny Chin said the book scanning amounted to fair use because it was “highly transformative” and because it didn’t harm the market for the original work.
“Google Books provides significant public benefits,” Chin wrote, describing it as “an essential research tool” and noting that the scanning service has expanded literary access for the blind and helped preserve the text of old books from physical decay.
Chin also rejected the theory that Google was depriving authors of income, noting that the company does not sell the scans or make whole copies of books available. He concluded, instead, that Google Books served to help readers discover new books and amounted to “new income from authors.”
I agree with the judge, and I think the Authors' Guild has been rather... quixotic.