[zozbot234]

> Libraries are (sometimes) allowed to make copies of copyrighted works without asking anyone's permission.

Libraries can make copies for preservation purposes, but that's not the same thing as making those copies generally available. The latter is not something that they're permitted to do outside of special circumstances. So I think your argument is going too far - there are clear reasons why the Open Library's lending works the way it does.

[nybble41]

There are a number if different (if somewhat overlapping) copyright exceptions for libraries. Some do allow copies to be made generally available to the public, though none are intended to mass distribution of any one work.

Section 108(a) allows the library to make a single copy of a work and distribute it to the public.

Section 108(b) allows up to three copies, for preservation or security or for deposit in another library (but not distributed directly to the public).

Section 108(c) allows up to three copies to replace deteriorating or obsolete media, but does not allow distribution outside the premises.

Section 108(d) applies only to excerpts.

Section 108(e) allows apparently unlimited copies to be made for "private study, scholarship, or research"—this is the default assumption, so the library would need to know that this was not the case to be in violation—provided that the work "cannot be obtained at a fair price". However, the copy must become the property of the user (i.e. not a loan).

Section 108(h) allows more widespread copying and distribution of abandonware within the last 20 years of their copyright period.

Ironically, section 108(e) would probably offer the best protection, but only if they were actually handing out permanent copies and not limited-time loans.