A federal judge ruled that Google's method of displaying thumbnails in image searches does not violate copyright, reports The Associated Press.

This particular copyright case against Google was brought forth by adult entertainment company Perfect 10, which alleged Google violated its copyright by displaying thumbnail images served by its website. Such usage, the judge ruled, is considered "fair use."

A related matter was referred back to a lower court for reconsideration. This concerns whether Google infringes copyright when an image, when clicked-on, brings users to a site illegally using the photo.

Google contends it is not responsible for such instances and that it merely indexes available content for use in search results. Perfect 10, however, says Google is liable for knowingly pointing people to infringing websites.

A lower court had dismissed Perfect 10's claim but the federal appeals judge would like to reconsider the motion.