There is a long posting on the O'Reilly Radar site bringing together some of Tim O'Reilly's thoughts on Google and the publishers. It is interesting to remember that Tim O'Reilly is a publisher while reading it.

Publishers have been stalling for years in getting their content online. Now someone may have a model that will take us in new directions, and they want to stop it till they can figure out how they will be the ones to profit from it. [O'Reilly Radar > Google Library vs. Publishers]
It is nice to see WorldCat get a mention in the comments.

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