Earlier quoted context omitted.
"Statement from Brewster Kahle, digital librarian of the Internet Archive: “When people want to listen to music they go to Spotify. When people want to study sound recordings as they were originally created, they go to libraries like the Internet Archive. Both are needed. There shouldn’t be conflict here.”" From the article I believe they are arguing that the intent behind the digitization is fair use, as you say, bu…
They are indeed making copies in the strictest sense, but the real problem is if the copyright holders don't enforce their copyrights in the strictest sense they can forfeit their copyright. For example, if I let the public use an image copyrighted by me long enough without strict guidelines and I try to take someone to court, the court can say yes well you let the horse out of the barn and now you are trying to put…
There is the doctrine of laches which might be applied in general to an excessive delay in asserting an equitable right, but there is no failure-of-defence loss of copyright under US or generally Berne Convention statutes globally. I've most frequently seen laches raised in the context of patent enforcement. https://www.law.cornell.edu/wex/laches>
This is rampantly false and misleading information.