penguinGiant book publishing company Penguin Group has decided to restore its catalog of e-books to e-book library lending services, such as the one offered via Amazon’s Kindle e-reader and tablet devices.

As VentureBeat reported earlier this week, Penguin decided to yank all e-books from any book sharing service that used the OverDrive lending system — which includes Amazon and several public libraries across the country — due to concerns that lending would lead to increased piracy. Others, however, speculate that Penguin made the decision because it doesn’t consider lending services productive for e-book sales.

“Amazon has undertaken to work with Penguin and OverDrive between now and the end of the year to address Penguin’s concerns. Penguin will, as a result, restore the supply of these titles until the end of the year in order to return the availability of older titles to all its digital customers,” a Penguin Group spokesperson said in a statement to The Register.

Penguin isn’t providing additional comment on why it yanked its e-books, but my guess is that the company realized the rash decision was an overreaction. Regardless, we’re reaching out to the company and will update here if and when we here anything new from them.

As for new releases of e-books, Penguin will continue to delay them for the time being. I’m not sure the move will curb illegal piracy of those new titles, as most people tend to resort to the tactic when there isn’t a legitimate solution available.