[grey413]

If the IA is creating their own digital copies of physical books, it could be argued that that the IA is creating and distributing derivative works. I'm not certain, but my impression is that derivative works have little in the way of legal protection.

[ac29]

The court order discusses this, and says while the first sale doctrine means IA could resell or lend their physical books, that right does not extend to unauthorized reproductions (such as making an ebook by scanning in a print book).

[dahart]

Changing formats without changing content is not a derivative work; it’s just a copyright violation. A derivative work must “add new original copyrightable authorship to that work.” https://www.copyright.gov/circs/circ14.pdf

[Retric]

They very much do in cases of backups and even VCR/DVR recordings of live TV.

The courts have gone back and forth on this issue, and I would expect this ruling to be appealed by either side if they had lost.