While the Associated Press made some noise recently about going after blogs that link to their content with an introductory snippet, the new Global Post online news site is actively inviting bloggers to link to their articles.
When I quote portions of news articles I try not to get abusive -- I don't copy the entire article; I quote a handful of sentences and invite my readers to "Read More" and provide a link. According to this New York Times article, though, many news media execs feel quoting small snippets like this and providing a link is a violation of copyright law and will “seek legal and legislative remedies against those who don’t” properly license the work.
I'm a big believer in the news media as the Fourth Estate to watch over those in power. With newspapers going out of business and the remaining papers losing revenue, it's interesting and encouraging to see new ventures likes this.
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If you are siting and linking then what is the issue? Ego can be bad enough, but corporate ego is the worst.