Google's efforts to scan more than 20 million books from libraries and make them available for free on the internet has been determined to be "fair use" - at least for now - because it is highly transformative, doesn't harm the market for the original work, and society benefits. The decision is available at: http://www.scribd.com/doc/184162035/Google-Books-ruling-on-fair-use-pdf
It is anticipated that this ruling has created a pathway for a decision in a companion case between the Author Guild and the Hathi Trust (a group of university libraries creating a shared database of digital books).