Over the course of the 90-minute hearing, Judge John G. Koeltl appeared unmoved by the IA’s fair use claims and unconvinced that the publishers’ market for library e-books was not impacted by the practice known as controlled digital lending. “To say that this case is about the ability of a library to lend a book that it owns ignores whether the library has a right to copy wholesale the book,” Koeltl offered at one point.
Source: At Hearing, Judge Appears Skeptical of Internet Archive’s Scanning and Lending Program