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The Internet Archive is an important resource and needs to be saved.
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Saving copies should be fine, the thing that keeps getting them in trouble is when they try to turn themselves into Library Genesis and freely distribute that media. They need to keep in the archivist mindset where preservation is the most important thing, keep the data safe for the day when it's no longer otherwise publicly available and distributing it is no longer going to get you in trouble.
How is it different from a library though? My library just buys their content from retail stores. They get their books from Amazon and their CDs and DVDs from Walmart, and they also have ebooks with a borrower limit (eg maximum of two checkouts at a time).
The thing that triggered Internet Archive's current enormous lawsuit problems is that they weren't imposing a borrower limit. They were letting as many people download copies as they wanted, with no limits.
I'm not at all a fan of current copyright laws, but that's really going straight into "what are you gonna do, stab me?" territory. This is a job for pirates, not for a library. Leave it to the experts.
They did have a limit for books originally, but removed it during COVID: https://blog.archive.org/2020/03/24/announcing-a-national-emergency-library-to-provide-digitized-books-to-students-and-the-public/. I agree that it was a poor decision.