Google is working on a new feature in Google Goggles that will allow you to take a picture of text and translate it into another language. For example, you could take a picture of a road sign or poster in a foreign language and translate it into your own language. What is Google Goggles you ask? It is a tool that allows you to search the Internet using pictures taken with your mobile phone (currently only available on Androids).
Read Google's Announcement
Learn more about Google Goggles
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