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It's Certainly Not Contaminated By Cheese
What if I started a newspaper (really made of paper) but didn't subscribe to AP. Instead I would publish the AP headline and the first 40 words of the article, then a link to the AP's site where they could read the whole thing. Would that be fair use? Is that what Retort is doing?
Legal questions aside, the AP should shut up and enjoy all the visitors they get.