The most promising aspect of the deal – and one that I hope will set a precedent – is that it was concluded through Smashwords’ acceptance of a simple document [pdf], “Statement of Common Understanding for Purchasing Electronic Content.” The keystone clause underpinning the Common Understanding’s resolutions is: “The Library affirms that it will comply with U.S. Copyright Law.” It subsequently specifies in clean and commonsense language what that means: i.e., purchase is not a transfer of copyright; the library will loan one copy for each ebook copy purchased; and it will not make derivative works such as films or translations. It affirms DCL’s right to make archival or preservation copies Copyright Section 108c, and the ability to make accessible copies available to the reading impaired Section 121. The whole document does not cover two pages. There is also a handshake agreement that should an author or publisher publish material through Smashwords without necessary rights and the library owns that title, then Smashwords will issue a request for the library to remove that title from its collection. The library will receive a refund for its purchase.

via Digital Lending, In Agreement | PWxyz.