Using their own standard, Michelle Malkin determines that the AP owes her $132,125 for quoting her blog above the 5 word limit.
I like Ace of Spade’s new policy:

I will limit the the words actually quoted from AP stories, limiting myself to paraphrase and direct quotes of relevant officials. (AP can’t copyright someone else’s words — at best, they can pitch an unfair trade practices beef, but that’s a harder case to make.)

I think I might do that as well if I can’t find someone else who has the quote.
Way to go, AP! Ticking off the left, right and tech bloggers. Why in the world would you want such a PR mess?