Google can stop copyfraud
Obviously, since Google scanned the public domain books, obviously, Google knows what is public domain and what is under copyright. So once they start charging for copyright books (per download or by subscriptions as the authors prefer) and financing public domain books through advertising, you can be sure that Google aren't going to allow for any copyfraud. Google just hasn't started yet.
And the solution to that Government beeing too lazy thing, Obama should give Google founder a call and suggest to nationalize Google and make it part of the United Nation, give the PHD software engineers at Google full support, full funding to solve all the problems of the world.