They distributed an unlimited number of copies - not backed by anything physical. That being the case, there is effectively no time limit on how long you can borrow something (you can just re-check it out).

That is just straight up piracy. They lent copies they did not own.

They tried to justify it by saying libraries were closed but they ignored the fact that more than 90% of libraries already have digital lending programs that went through the due processes and are legal.