They already have it set up so that libraries have to pay them a subscription for their digital lending.
What IA were doing was scanning in physical books and then lending one digital copy per physical book scanned.
At least, that's what they did until the covid lockdowns. Then they temporarily removed the download restriction, and the lawsuit was in response to that.
Bit annoying that they're more specific about latency than bandwidth. The laser had lower latency than broadband, but I want to know if the laser had enough bandwidth to stream the video.