can you loan out a kindle?

Library Journal announced last week that Brigham Young University had received a verbal okay from Amazon to start lending Kindles in their library. This week it appears that they’ve suspended the program until they can get written permission. While I totally understand the concerns on both sides here, I’d really like it if libraries sometimes erred on the side of continuing to do whatever it was that they were doing, in good faith, and let the vendors let them know if they’re not doing something correctly. It’s a little weird to me that Amazon has invested all this time and money into an ebook reader and has no policy about what the legal/copyright concerns are with using it in a library. Can someone please force this issue?

update: There is an interesting story making the blog rounds about just how much of the Kindle’s policies and DRM weirdnesses remain mysterious, even to the people who work at Amazon.