The court of appeals affirmed a judgment in part, reversed in part, and remanded. The court held in an amended opinion that a computer system operator “displayed” information in direct violation of a copyright holder’s display right by communicating stored “thumbnail” images to computer users. The court held further, however, that the system operator demonstrated fair use of the thumbnails where they were employed in conjunction with an internet search engine.

Perfect 10, Inc. sued Google, Inc. for infringing Perfect 10′s copyrighted photographs of nude models, among other claims. Perfect 10 alleged infringement of both its display rights and its distribution rights. Perfect 10 brought a similar suit against Amazon.com.