Section 404 of the DMCA updates section 108 of the Copyright Act to allow libraries and archives to take advantage of digital technologies when engaging in specified preservation activities. The amendment to subsection 108(a)(3) is intended to ease the burden on libraries and archives of the current law's requirement that a notice of copyright be included on copies that are reproduced under section 108. Under this amendment, such notice would be required only where the particular copy that is reproduced by the library or archive itself bears a notice. The amendment to subsection 108(b) permits a library or archive to make up to three copies or phonorecords, rather than just one, for purposes of preservation and security or for deposit for research use in another library or archives, and permits such copies or phonorecords to be made in digital as well as analog formats. The amendment provides that any such copy in a digital format must not be otherwise distributed in that format and must not be available to the public outside the premises of the library or archives.
That isn't immunity to frivolous DMCA notices or the ability to ignore DMCA notices.
By serving as an exit node, they are able to take it off premises.
> The amendment provides that any such copy in a digital format must not be otherwise distributed in that format and must not be available to the public outside the premises of the library or archives.
Yeah, that's a specific example they point out in the guidelines.
But there's another section that also applies to higher ed institutions which remits all damages and criminal charges if they prove they had no knowledge of it (actively) going on. That's the provision they'll probably hide under.
edit: I should clarify, most DMCA complaints are from third parties who get paid from the settlements. Eliminating the financial incentive to pursue legal action pretty much eliminates the threat of prosecution.