BYU's Harold B. Lee Library is suspending a short-lived pilot program using Amazon.com's electronic book, the Kindle, as a substitute for interlibrary loans.
The program, which has been available to faculty members for about a month, created some buzz on library-related blogs for breaking ground in the uncertain area of lending books on the Kindle.
Although BYU had verbal permission to proceed with the program, Roger Layton, communications manager for the library, said the program is on hold until the university has a clearer picture of Amazon's legal concerns.
I found a Kindle blog with a list of other libraries who are doing Kindle lending, plus a handful who are lending Sony readers. Amazon doesn't appear to have given anyone explicit written permission for lending, but that hasn't stopped about a dozen libraries for going forward. Those who have reconsidered have looked at the cost, e.g. this note on Tinfoil + Racoon:
Note the metrics used to evaluate services!