Internet Archive loses copyright lawsuit over e-book lending.

San Francisco's Internet Archive has lost a lawsuit filed by publishing houses Hachette Book Group, HarperCollins Publishers, John Wiley & Sons, and Penguin Random House, who objected to the nonprofit's lending of e-books, citing copyright violation. The Internet Archive defended itself on the grounds of "fair use," but U.S. District Judge John Koeltl ruled that its practices were not considered "transformative," one of the primary tenets of fair use. The Internet Archive plans to appeal the ruling.