Now why isn't this piracy?

[Wing Nut]

Personally, I don't see a difference between burning this stuff at home, and going to the library for it.  Either way you're not paying for it, so the original authors are out some money.  Sounds like legal piracy to me...

N.Y. Public Library Starts Digital Library

[Hagar]

If I'm reading it correctly the audio books are on a time limit.

Users can listen to digital audio books through a computer, burn them to CDs or transfer them to many portable devices, library officials said.

Digital audio books are available for free to members through the library's Web site. Users can borrow up to 10 digital books at a time, and after 21 days the materials will be automatically checked in and made available to others.

I checked the NY Public Library website which seems to confirm this.

I came across a reference to 'licenses'. What are licenses and why do I need them?

Licenses are files that allow protected content to be played with Windows Media Player. Before Windows Media Player will open a protected file, it verifies that the user has the appropriate license. If the user does not have a license for the content, the file will not open. Licenses are automatically managed by OverDrive Media Console when eAudio titles are downloaded.

I'm sure piracy is possible but that's true for any electronic media.
http://ebooks.nypl.org/BBC462B8-4942-4A20-8D4A-A3EB9BFA77EA/10/121/en/Help-FAQ-Format25.htm#19