This is a Second Circuit opinion, so it does not directly cover California. However, it will be persuasive when the Ninth Circuit, which covers California, addresses similar issues. In short, the case is titled Fox News v. TVEyes, Inc., and holds that while it is fair use to allow searching of copyrighted material, actually providing a significant amount of that material (in this case, 10 minute long clips) is copyright infringement.
This appeal shares features with our decision in Authors Guild v. Google,
Inc., 804 F.3d 202 (2d Cir. 2015) (“Google Books”). That case held that Google’s
creation of a text?searchable database of millions of books (including books under
copyright) was a fair use because Google’s service was “transformative” and
because integral features protected the rights of copyright holders. However, we
cautioned that the case “test[ed] the boundaries of fair use.” Google Books, 804
F.3d at 206.
We conclude that defendant TVEyes has exceeded those bounds.
TVEyes’s re?distribution of Fox’s audiovisual content serves a
transformative purpose in that it enables TVEyes’s clients to isolate from the vast
corpus of Fox’s content the material that is responsive to their interests, and to
access that material in a convenient manner. But because that re?distribution
makes available virtually all of Fox’s copyrighted audiovisual content??including
all of the Fox content that TVEyes’s clients wish to see and hear??and because it
deprives Fox of revenue that properly belongs to the copyright holder, TVEyes has
failed to show that the product it offers to its clients can be justified as a fair use