As I recall, there’s case law that even their original form isn’t legal. Lending DVDs by buying physical copies and then streaming them to customers, even by writing the contract so that you sold the DVD to the customer, allowed them to play it in a DVD player that you loaned to them that streamed the contents to you, and then buying back the DVD, was found to be illegal. I’m not sure if this was a DMCA CSS circumvention issue or not, but it was a pretty chilling precedent to set.
I remember that case, but not the company name. I remember following the drama on Techdirt.com back in the day.
I don’t think there’s a a 1-to-1 correspondence between books and visual media in US law, which would equate a DVD with a book in a library.
Remember when Google did pretty much exactly this? I’m not even close to being a lawyer, but the settlement from that case seems relevant. If Google can’t get away with ignoring copyright, it’s hard to imagine IA would.
I’m kinda sad because there’s no way this could have ended well for IA - it smacks of hubris that has the risks of harming their other operations.