Music Modernization Act (2018). A long overdue tiny step into common sense copyright reform.
https://www.copyright.gov/music-modernization/pre1972-soundr...
"The legislation also establishes a process for lawfully engaging in noncommercial uses of Pre-1972 Sound Recordings that are not being commercially exploited. To qualify for this exemption, a user must file a notice of noncommercial use after conducting a good faith, reasonable search, and the rights owner of the sound recording must not object to the use within 90 days."
Basically Internet Archive could've sent a spreadsheet of works to the Copyright Office and anyone claiming commercial use of these old records had to respond within 90 days. In the lawsuit Brewster is quoted saying that it makes pre-1972 works "Library Fair Use."
The law does not allow people to make commercial use of these recordings (take three seconds to consider why). But they could've archived old recordings all day and then made the ones that cleared the list immediately available for unlimited download. And provided excerpts of the others for research purposes.
Instead they managed to get sued for $696 million. For a side project that nobody cared about (40,000+ downloads) that managed to put the whole org (and several participants' personal assets) at risk for two years.
As an aside, 78 RPM records are not particularly fragile. As a consumer product, yes. By preservation standards, no.
"With proper care and storage, this durable resource can last for centuries"
https://www.tandfonline.com/doi/abs/10.1300/J116v08n02_04