Back in 2006, a pornography publishing company named Perfect 10 attempted to sue Google over copyright infringement, claiming that the thumbnails displayed on Google’s image search did not fall under “fair use.” Ultimately, the Supreme Court wouldn’t even hear the case, allowing the ruling that thumbnails are fair use to stand and handing Perfect 10 yet another loss (they’ve sustained many in this area).
http://petapixel.com/2012/05/08/copyright-suit-against-tumblr-may-affect-all-photo-sharing-sites/
http://petapixel.com/2012/05/08/copyright-suit-against-tumblr-may-affect-all-photo-sharing-sites/