The U.S. Court of Appeals for the Second Circuit just made a major decision that could change how digital libraries operate. In a case involving the Internet Archive, a popular nonprofit that scans physical books and lets people check them out online, the court ruled that this practice is a violation of copyright laws, as reported by Wired. The Internet Archive argued that its Controlled Digital Lending (CDL) program simply did what libraries have always done—lend books—but in digital form. Sounds fair, right? Well, the court didn’t think so.

The backstory begins during the pandemic when the Internet Archive created the National Emergency Library (NEL), so people could borrow as many digital books as they wanted without the usual limits. Publishers like Hachette, HarperCollins, and Penguin Random House sued the Archive for offering free digital copies of their books, which they claimed undercut eBook sales and licensing deals. The court sided with the publishers, emphasizing that the Archive’s digital library was essentially replacing the need to buy eBooks, which harms both publishers and authors.

However, not everyone agrees with the decision. Dave Hansen, executive director of the Author’s Alliance—a nonprofit whose work involves advocating for expanded digital access to ‘works of authorship’—voiced opposition to the ruling.

“Authors are researchers. Authors are readers,” Hansen said. “IA’s digital library helps those authors create new works and supports their interests in seeing their works be read. This ruling may benefit the bottom line of the largest publishers and most prominent authors, but for most it will end up harming more than it will help.”

So, what’s next? The Internet Archive might take the fight to the Supreme Court, but for now, this decision could have a big impact on how digital content is shared. It’s also part of a bigger conversation about fair use, especially as AI and digital technologies push the boundaries of what’s legal when it comes to using copyrighted material.