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The court has ruled against the Internet Archive terming its operations to be against the interest of the publishers, The Verge reported. The Second Circuit Court of Appeals stated that Internet Archive has been lending out e-books without permission from the publishers which is clearly in violation of existing laws. The court said allowing the organization to function would not only deprive the creators of their rightful earnings but can also negatively impact their motivation to create new stuff.
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Source: Good e-Reader
