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Copyright laws typically prohibit both identical copies, which appear to be done here by users during image processing / OCR even if only transitory, as well as derivatives of the copy. So the question then becomes, is this "fair use"?

If the use case for the app is personal use by the possessors of the textbook, very likely no problem. For all other uses you should consult a lawyer to make sure you're in the clear.

> as well as derivatives of the copy

Shouldn't this imply that it's illegal for me to make quizzes on my own from information I found in a textbook? If this app is implemented correctly, what it does should be indistinguishable from a human. It makes no sense to change the infringement status of a work based on how the work was produced.

Also, generally hard facts (like when Hitler died or how Hitler killed himself) are not copyrightable.

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