From the "Politics Makes Interesting Bedfellows" department, EFF and the Library Copyright Association joined forces to file an amicus brief supporting Google Image Search in its court battle with adult website Perfect 10. EFF believes that the freedom to hyperlink is potentially threatened in this case. The case also involves IP issues surrounding the indexing thumbnails of copyrighted images, and its outcome has the potential to expand responsibility for IP infringmenent to third parties.
From TFA: "Adult entertainment publisher Perfect 10 claims that Google's Image Search service violates copyright law by indexing Perfect 10 photos posted on unauthorized websites, then making and delivering thumbnail images of those photos in its search results. Perfect 10 also contends that Google should be held liable for any copyright infringement that occurs on sites that Google links to."
More on the case: http://www.eff.org/legal/cases/Perfect10_v_Google/