There was some handwaving around all the physical books locked up in libraries that the IA took it upon themselves to virtually "borrow" but there were no actual partnerships AFAIK.

(And, honestly, why stop at libraries? There's actually very little special about libraries from a copyright law perspective. There's absolutely nothing to keep me from putting a set of bookshelves in front of my house and do an honor system book lending or take a book/leave a book thing.)