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Google and the book publishers who sued to stop the Google library project have reached a settlement. See the AAP's settlement page and press release, as well as Google's settlement page, press release, and blog post. The two press releases use the same text.
From the common press release (October 28, 2008):
From the parties' joint FAQ:
From Google's blog post on the settlement:
Comments. I'm still digesting this. But here are some first impressions.
Update (10/31/08). I just heard from Derek Slater, a policy analyst at Google. (Thanks, Derek.)
Update (11/6/08). I add some second thoughts to my first impressions in a new post.