Yes! The U.S. Court of Appeals upheld the prior 2023 ruling against IA, the case stemming from the IA's National Emergency Library (NEL) initiative during the COVID-19 pandemic, which allowed users to access digitized books without the usual lending caps. This prompted the lawsuit from several major publishers, who argued that this violated copyright law. The appeals court rejected the IA's argument that its activities fell under the "fair use" doctrine, specifically noting that the IA digital library acted as a substitute for original books, depriving publishers and authors of revenue. While the court acknowledged that the Internet Archive's activities were non-commercial in nature, it still concluded that the wide availability of digitized books due to unregulated replication harmed the market for the original works. This decision has significant implications for the IA’s future operations, potentially limiting its ability to continue its broad digitization efforts without publisher consent. The ruling reinforces the legal rights of publishers and authors to control the reproduction and distribution of their works, even in digital formats. The Internet Archive has few remaining legal options, with the Supreme Court being one of its last possible avenues for appeal. Meanwhile, the organization faces additional lawsuits related to its music digitization efforts, those litigations are ongoing. The ruling today highlights a broader conflict between the rights of creators and the push for wider public access to information, with the court siding firmly with the former. The case sets a strong precedent for how copyright law is applied to digital libraries in the U.S. moving forward.

No. The lawsuit was over the CDL, the NEL was barely mentioned in the judgment or really the arguments.

If it was over the NEL, the case would have been over ~4 years ago when they shut down the NEL.