Publishers beat Internet Archive as judge rules e-book lending violates copyright

On Friday, a US district judge ruled in favor of book publishers suing the Internet Archive (IA) for copyright infringement. The IA’s Open Library project—which partners with libraries to scan print books in their collections and offer them as lendable e-books—had no right to reproduce 127 of the publishers’ books named in the suit, judge John Koeltl decided.

IA's so-called "controlled digital lending" practice "merely creates derivative e-books that, when lent to the public, compete with those [e-books] authorized by the publishers,” Koeltl wrote in his opinion.

Publishers suing—Hachette, HarperCollins, Penguin Random House, and Wiley—had alleged that the Open Library provided a way for libraries to avoid paying e-book licensing fees that generate substantial revenue for publishers. These licensing fees are paid by aggregators like OverDrive and constitute a “thriving” market that IA “supplants,” Koeltl wrote. Penguin’s e-book licensing generates $59 million annually, for example.