The Pulse RSS reader for iPad, featured just yesterday during Steve Jobs' WWDC 2010 keynote, is reportedly being removed from the iTunes App Store following a copyright complaint from the New York Times/The Boston Globe.

The gist of their demand letter is that Pulse comes pre-loaded with the RSS feed and features it in screen shots, is a paid app, and thus commercially using their RSS feeds, and that it reframes the and websites, both of which the New York Times Company says is in violation of their copyright.

Pulse was written by two Stanford grad students, whom we're guessing have far fewer legal resources than the New York Times Company, but are now in a position where they have to answer the copyright violation charge and/or modify their app to no longer violate the copyright.

Now, Pulse wasn't scraping or stealing RSS content in the traditionally frowned-upon way -- they're an RSS reader like many, many others both on the desktop and on mobile devices. Was the only difference it's high profile thanks to WWDC and a previous feature in the New York Times itself? If so, what does this mean for other RSS readers?

[Boom Town, image via New York Times]