Andrew Bridges is the Google counsel on the board for this video and he brings up a couple very good points in favor of Google. He points out one of Perfect 10's arguments, for the fourth factor of Fair Use, that Google's Image Search could severely hurt the market for a cell phone in the UK. He pointed how ridiculous it would be if this large, very useful image search, could fail because of a single cell phone deal. Clearly this shows that such an argument, from Perfect 10, should not be seriously considered. He goes on to point out the Perfect 10 starts to combine trademark law with copyright law when they argue about framing. He makes a very good case that the framing is very similar to hyperlinking, which is clearly not anywhere near copyright infringement.
Russ Frackman is the Perfect 10 counsel and brings up a potentially harmful argument against Google. He argues that Google's linking is direct infringement because it links to copyrighted materials. He cites a very good example of a South Park website that claims that it is not infringing because it is not hosting the video. The video is imbedded on the page, but they do not actually host the video. While this at first seems like a very strong argument, he fails to acknowledge the clear differences between Google and the South Park website. Google Image Search is not directly linking to the website; rather a computer program is creating the thumbnails and the links. The South Park website is purposefully linking to an infringing video. He also points out that Google gains a lot by having their name on the screen in framing and the Image Search in general. They are not merely providing a service. While this is obviously true, it does not really hit the important issues. Obviously the Image Search is important and beneficial to Google; if it was not, they would not have it. It does not, in any way, contribute to the creation or even the linking to the infringing images. For that reason alone, that aspect should not hold much importance.