The Internet Archive has lost its appeal in a significant copyright case involving its National Emergency Library (NEL), which allowed unlimited borrowing of digitized books during the COVID-19 pandemic. The US Court of Appeals for the Second Circuit upheld an earlier ruling that the Archive's practices violated copyright law, rejecting its claim that the lending was protected under the fair use doctrine. Major publishers such as Hachette, HarperCollins, Penguin Random House, and Wiley, argued that the NEL's large-scale distribution harmed their financial interests and discouraged new literary works. Despite reinstating borrowing caps, the lawsuit proceeded, leading to the court ruling against the Archive. The decision could have broader implications for the Archive's other projects, including the Wayback Machine and its music digitization efforts. The Archive is reviewing the decision and vows to continue defending library rights.