Perfect 10, Inc. v. Amazon.com, Inc. (2007)

“Search engines can display thumbnails for transformative purposes without infringing copyright.”

This case reinforced that transformative use can protect digital platforms even when using copyrighted images.

Short Description :

Perfect 10, a publisher of adult content, sued Google and Amazon for showing thumbnails of copyrighted images in image search results. The Ninth Circuit ruled that such use was transformative, provided public benefit and search functionality, and did not substitute the original images.

Facts :

Perfect 10 owned copyrighted images of models and adult content. Google and Amazon displayed thumbnail versions in search results, linking to the original content hosted elsewhere. Perfect 10 argued that this constituted copyright infringement because it allowed users to view images without purchasing. Google/Amazon argued that thumbnails were small, low-resolution, and provided a transformative function — allowing users to locate content efficiently.

Findings / Reasoning :

The court applied the four-factor fair use test:

⦁ Purpose and character: Transformative — provided search functionality, not a substitute.

⦁ Nature of the work: Creative works, but the transformative public benefit outweighed this factor.

⦁ Amount and substantiality: Only small, low-resolution thumbnails were used; not the full images.

⦁ Effect on market: Displaying thumbnails did not reduce sales of the original images; users still had to access the source website.

The court concluded that the thumbnail display served a new purpose and added value, qualifying as fair use.

Suggestions / Observations :

This decision guides digital content platforms, search engines, and aggregators. Use of copyrighted material for transformative, non-substituting purposes — like indexing, research, and previews — can be legally protected. It also emphasizes the importance of linking to original sources rather than hosting infringing content.

Judgment & Date :

Judgment in favor of Google and Amazon; thumbnail display ruled fair use.

Date: August 24, 2007.