The Internet Archive is running out of legal options as reports indicate that the non-profit organization lost its appeal in the US Court of Appeals for the Second Circuit, rejecting its claim that its virtual library of books can operate under the fair use doctrine. The lawsuit originated from the National Emergency Library (NEL) launched in March 2020 during the pandemic, allowing users to check out unlimited e-books, which led to publishers like Hachette Book Group filing a lawsuit. A federal judge ruled in favor of the publishers, stating that the website violated copyright protections. Despite this, the court did recognize the Internet Archive as a non-commercial entity. However, the organization still faces a separate copyright infringement lawsuit over its music digitization projects brought by Sony and Universal Music Group.
