"After conducting legal research on the LEXIS database of legal cases, decisions, and precedents, we have demonstrated conclusively that PG was making incorrect determinations regarding public domain status in many, many works that originally appeared in magazine form."
So a day after joining PG it turns out that they're (we're!) copyright infringing monsters. I feel so unclean.
Project Gutenberg should make absolutely sure that they deal with this issue as quickly and lawyer-free as possible. PG has a great future as long as they stay squeaky-clean and non-Google-like (i.e. too big to care) as possible.
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