The US Court of Appeals for the Second Circuit has ruled against the Internet Archive in the significant copyright case Hachette v. Internet Archive, affirming a previous decision that found the archive's digital lending practices to be in violation of copyright law. The court dismissed the Internet Archive's fair use defense as 'unpersuasive,' marking a pivotal moment for digital lending practices [0f428f6d]. This ruling stems from the launch of the National Emergency Library (NEL) in March 2020, which aimed to provide access to books during the pandemic by allowing multiple users to borrow the same book simultaneously. This initiative faced considerable backlash from authors and led to a lawsuit from major publishers in June 2020 [0f428f6d].
In March 2023, the district court ruled in favor of the publishers, stating that the Internet Archive had created 'derivative works' through its lending practices. The appeals court clarified that while the Internet Archive operates as a nonprofit, the implications of this ruling extend beyond this case, potentially affecting copyright law and digital preservation efforts [0f428f6d]. Furthermore, the Internet Archive is now facing additional legal challenges from music labels, which could result in damages amounting to $400 million, highlighting the ongoing struggles of digital archives in navigating copyright issues [0f428f6d].