> "The use to which the works in the HDL are put is transformative because the copies serve an entirely different purpose than the original works: the purpose is superior search capabilities rather than actual access to copyrighted material," wrote Judge Baer. "The search capabilities of the HDL have already given rise to new methods of academic inquiry such as text mining."
This might set precedent for a showdown over annotations that quote extensively from the source text, since online annotation systems also "[give] rise to new methods of academic inquiry."
The main point here is that laws about fair use are pretty vague, and new technologies always shake things up. We don't know what is legal and what isn't until it's put before a judge. In the case of Google's book scanning, the court case took seven years, which shows just how tricky this area of law can be.
[1] http://arstechnica.com/tech-policy/2007/05/google-v-perfect-...
[2] http://arstechnica.com/tech-policy/2012/10/court-rules-book-...