Newspapers starting to pressure Google

As newspapers look for ways to make money online, they're grumbling about sites like Google that are making money off their news.  Newspapers don't want to pull their articles from Google searches and Google News (the links bring readers to newspaper websites) but rather force Google to start paying them something.  In what form (subscriptions, content deals) no one seems quite sure, though people are starting to apply pressure.  Murdoch complained last week, and AP followed on Monday

In the middle of this, Google CEO Eric Schmidt delivered the closing address at the Newspaper Association of America convention.  This Information Valet page includes a link to the audio, along with links to a transcript of the Q and A, and to other info.  In the Q and A, when asked about A.P.'s recent complain, Schmidt commented that they had a good deal with the A.P., so he was surprised by the complaints, and that he believes what they do is covered under Fair Use.

That said, he expressed the desire to work with newspapers.  In this New York Times article about his address---Google Insists It's a Friend to Newspapers---he answers how Google would respond if newspapers starting charging for content.  “In a scenario where a newspaper had a subscription product, what would Google do?...It’s highly unlikely that we would buy a subscription and give the content away free. We might be able to help the distribution of that content, but the user would have to pay.” 

Also, here the NYT Bits blog talks about the address and newspaper response.