If I recall correctly, the Internet Archive decided unilaterally that they would do this due to many libraries being closed.
I (not in the US) do not remember any changes to the copyright act being passed to allow this.
Edit to add: They offered this globally and therefore disregarded any laws in countries which have already settled this issue. (Hint: to my knowledge not in a way that favors their interpretation)
There is no law permitting this - IA main legal argument it:
> Our principal legal argument for controlled digital lending is that fair use— an “equitable rule of reason”—permits libraries to do online what they have always done with physical collections under the first sale doctrine: lend books
If I recall correctly, the Internet Archive decided unilaterally that they would do this due to many libraries being closed.
I (not in the US) do not remember any changes to the copyright act being passed to allow this.
Edit to add: They offered this globally and therefore disregarded any laws in countries which have already settled this issue. (Hint: to my knowledge not in a way that favors their interpretation)