Internet search giant Google Inc., the Authors Guild, and the Association of American Publishers have settled a class-action lawsuit over Google's ambitious book-scanning project in a deal that represents a huge win for libraries and their users.

Under the deal, Google will pay $125 million to resolve copyright claims by authors and publishers and to pay legal fees. Authors and publishers will have new opportunities to make money from the sale of out-of-print books online, and public and academic libraries will be able to expand their reach by offering full-text views of books in some cases.

The settlement ends a three-year legal...

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