From The New York Times Media Decoder:
Major book publishers and libraries have been sparring for months over acceptable terms for making e-books available for lending. From time to time, they find some common ground.
The Penguin Group plans to announce on Monday that it is expanding its e-book lending program to libraries in Los Angeles and Cleveland.
. . . .
The terms of lending will be the same as those they have been testing through 3M systems in New York public libraries since September: Penguin will sell any book to the libraries for lending six months after its release date, each book may be lent to only one patron at a time and at the end of a year the library must buy each book again or lose access to it.
Link to the rest at Media Decoder