I wonder how images.google.com gets away with it. Part of it could be that they are careful not to put advertisements in that part of their virtual empire. Part could be that their lawyers make them an expensive target. And I guess another part is that they lose a few cases and pay some judgments.
If only because I have a niece who is a professional photographer, and Ms. Loren was using her web site, in part, to promote sales of her books, I have to agree that the photographer was due some money. Whether the amount was fair, maybe not. Loren was unlucky.
I'm going to ask my niece if this happens to her (probably does, I see a lot of her work at images.google.com), and what she does about it.