The U.S. Court of Appeals for the Second Circuit has upheld a lower court's ruling that the Internet Archive infringed on copyrights of major publishers, including Hachette Book Group and HarperCollins, by digitizing and distributing print books without permission. The court rejected the Internet Archive's argument for 'fair use,' stating that the nonprofit's practice of Controlled Digital Lending does not conform to legal standards. In its decision, the court emphasized that the copyright holders' rights to license and receive compensation for their works must be respected. The ruling reinforces the principle that converting entire works into digital formats without authorization is not transformative and constitutes infringement. The case was initiated in 2020, with the publishers seeking damages and injunctions against the Internet Archive's practices. This decision is a significant blow to the Internet Archive's operations and raises questions about the future of digital lending models.