The Second Circuit Court of Appeals ruled that lending scanned ebooks by the Internet Archive would 'allow for widescale copying that deprives creators of compensation and diminishes the incentive to produce new works.'
The Internet Archive's approach, called controlled digital lending, aimed to allow users to check out digital scans of physical books, corresponding to physically purchased books.
The lawsuit was initiated after the Internet Archive expanded its services during the pandemic, launching the National Emergency Library, which allowed unlimited access to ebooks.
While acknowledging the benefits of the Internet Archive's digital library, the Court emphasized that authors deserve compensation for their works, upholding the balance outlined in the Copyright Act.
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