It is literally impossible to send a file over the internet with no more than one copy. Every additional “loan” is multiple additional copies. Even if we ignore that, you’re very conveniently ignoring the “material objects” part of that definition, which again, completely and unconditionally disqualifies a loan over the internet.
DRM is entirely irrelevant. It has no bearing on anything.
They filed a lawsuit because IA flagrantly and egregiously violated their rights. They openly fucking dared them to. And now they don’t get ignored on their limited copy illegal lending and can’t get away with any copies.