MarketingVOX: Google has been paying the Associated Press for AP stories and photographs that it indexes and displays, the companies confirmed yesterday.

Settling a dispute with a major provider copyrighted news that Google displays on its news site, Google and the Associated Press disclosed the existence of a several-months-long business relationship yesterday, reports the AP. But, citing a nondisclosure agreement, neither would say what the financial terms were or divulge other details. Apparently, though, AP content will form the basis of a new Google product, to be launched in the coming months alongside Google News.

In April 2005, the LA Times reported that AP is in negotiations with Google, attempting to persuade it to buy a license. It's not clear whether Google is paying a flat fee or a commission based on traffic.

"Google has always believed that content providers and publishers should be fairly compensated for their work so they can continue producing high quality information," Google said in a statement.

But Google, sued last year by Agence France Presse, for infringement, has long said it need not pay for pointing to news items and photographs elsewhere on the web, arguing doing so falls within "fair use" protections under copyright law. "Google News is fully consistent with fair use and always has been," Google reaffirmed Wednesday.

If both statements are accurate, then Google is not paying AP merely to point to news and photographs on Google News; that's apparently where the anticipated launch of a new news product comes in.

Related news:

- Lawsuit against Google News Not Dismissed

- On Eve of Google/Yahoo News Battle, Skirmish with AP

- Google Expunges AFP

- French News Service Challenges Google News's Right to Republish