The Internet Archive has lost its first fight to scan and lend e-books like a library

A federal judge has ruled against the Internet Archive in Hatchette v. Internet Archive, a lawsuit brought against it by four book publishers, deciding that the website does not have the right to scan books and lend them out like a library.

Judge John G. Koeltl decided that the Internet Archive had done nothing more than create “derivative works,” and so would have needed authorization from the books’ copyright holders — the publishers — before lending them out through its National Emergency Library program.

The Internet Archive says it will appeal. “Today’s lower court decision in Hachette v. Internet Archive is a blow to all libraries and the communities we serve,” Chris Freeland, the director of Open Libraries at the Internet Archive, writes in a blog post. “This decision impacts libraries across the US who rely on controlled digital lending to connect their patrons with books online. It hurts authors by saying that unfair licensing models are the only way their books can be read online. And it holds back access to information in the digital age, harming all readers, everywhere.”

The two sides went to court on Monday, with HarperCollins, John Wiley & Sons, and Penguin Random House joining Hatchette as plaintiffs.

In his ruling, Judge Koetl considered whether the Internet Archive was operating under the principle of Fair Use, which previously protected a digital book preservation project by Google Books and HathiTrust in 2014, among other users. Fair Use considers whether using a copyrighted work is good for the public, how much it’ll impact the copyright holder, and whether the use has “transformed” a copyrighted thing into something new, among other things. But Koetl wrote that any “alleged benefits” from the Internet Archive’s library “cannot outweigh the market harm to the publishers.”

He also dismissed arguments that the Internet Archive might theoretically have helped publishers sell more copies of their books, saying there was no direct evidence, and that it was “irrelevant” that the Internet Archive had purchased its own copies of the books before making copies for its online audience. According to statements during the trial, the Internet Archive currently hosts around 70,000 e-book “borrows” a day.

The lawsuit came from the Internet Archive’s decision to launch the “National Emergency Library” early in the covid pandemic, which let people read from 1.4 million digitized books with no waitlist. Typically, the Internet Archive’s Open Library program operates under a “controlled digital lending” (CDL) system where it can loan out digitized copies of a book on a one-to-one basis, but it removed the waitlists to open access to the books it had on hand as people were forced to be at home. Some weren’t happy about that choice, and the group of publishers sued the Internet Archive in June 2020.