The Associated Press demanded Meltwater buy a license to distribute the story excerpts and, when the service refused, the AP sued it for copyright infringement. Meltwater said it’s fair use to clip and display news stories.
The issue, apparently, is that Meltwater charges for their service of aggregating news stories. Does fair use require that redistribution of stories be free? How about ads on those pages? If Meltwater got their revenue from ads---perhaps ads from their customers---would that be OK?"