How does this work? Is it normal for university libraries to keep a huge secret backup collection of PDFs? What happens if the university chooses to discontinue its subscription, as opposed to the publisher going out of business?
I wouldn't know about ToU violations, universities routinely get banned from arXiv for weeks because CS departments hand out assignments to write a webcrawler - no clue what kind of grovelling is requited there, but it must be well ritualized now.