When the conclusion is so obviously incorrect, we should examine the underlying precedent that leads us to such an erroneous conclusion. This precedent should give us pause. They're restricting a NONPROFITs to distribute legally purchased print media in a way that the publishers don't want.
And this seems to be the justification:
> In addition to selling traditional print books, Publishers collectively invest millions of dollars in developing new formats and markets suited for the digital age, including the eBook market.
> Here, by contrast, IA’s Free Digital Library offers few efficiencies beyond those already offered by Publishers’ own eBooks. IA argues that its use is more efficient because it “replace[s] the burdens of physical transportation with the benefits of digital technology,” but this ignores the fact that IA’s digital books compete directly with Publishers’ eBooks―works derivative of the original print books.
This is an assault on free-use, libraries, and collective sharing of knowledge. If I buy a physical book, I can give it to anyone I want because the laws of yore did not see societal benefit to prohibiting this. I'm quite certain that these companies would prohibit the practice, if they could. The law is the only thing protecting the commons.
The argument here is essentially, "these companies are spending millions to distribute their IP digitally, so we should shield them from Open standards that would negatively impact their profits". "Your work isn't transformative, because we've already done a similar transformation". They're wielding a proprietary implementation as a hammer to crush open knowledge. The internet should be a tool to facilitate knowledge-sharing for the betterment of our entire species, not a weapon to stifle knowledge for the sake of corporate profits.