Is it a case the quality news content now has a price in the world of search? The recently disclosed payment deal between Google and Associated Press might indeed mean that syndicated online news content is actually a commodity that Google is prepared to pay for.

Mountain View based Google and New York based Associated Press disclosed the payment deal last Wednesday, but both parties are tight lipped about the financial terms of the arrangement.

Initial discussions between the two parties commenced back in April 2005, with Associated Press keen on Google purchasing a license for their news content; be that a flat fee or commission based agreement.

Last year, news provider Agence France Presse, sued Google for copyright infringement which was refuted by the search giant under the “fair use” protections under copyright law. The company has long said it need not pay for pointing to news items and photographs elsewhere on the web.

With that in mind, it would suggest that the new deal with Associated Press involves more than merely pointing to their content online.

That’s where a rumored new news service comes in. “The license in this agreement provides for new uses of original AP content for features and products we will introduce in the future,” said a Google spokesperson. “We are very excited about the innovative new products we will build with full access to this content.”

Considering we haven’t received a call from Google yet, with regards to licensing our content, I am guessing the deals will be offered to selective news sources. Stay tuned for an update on the new Google News services as they come to hand.