as far as i know, i think that the libraries dont get a penny but google puts links in to "buy this book" on any searches where books are thrown up as the answer to searches.
google gets away with this because it's currently the new good guy on the block. i very much doubt microsoft (or anyone else for that matter) would've been offered the same terms if they approached the libraries with a similar proposal for their new search engine.
as far as costs go for putting all of the books online, i've no idea. but i'd imagine given the size of the libraries at those places, it must be 100's of man years of work to get the whole job done?
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