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The TEACH Act
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The Technology, Education and Copyright Harmonization (TEACH) Act was signed into law in October, 2002.

The TEACH Act amends Sections 110(2) and 112 of the Copyright Act of 1976 to give instructors at accredited nonprofit educational institutions greater flexibility to use third party copyrighted works in online course delivery.

The bill permits the display and performance of virtually all types of works during online instruction without the consent of the copyright owner, provided that:
the online instruction at an eligible institution is mediated
by an instructor;
the transmission of the material is intended only for receipt by students enrolled in the course, regardless of where the students are physically located;
the institution employs measures to prevent “retention
of the work in accessible form by recipients of the transmission for longer than the class session;”
the institution employs measures that limit the transmission of the material to students enrolled in the particular course and precludes unauthorized student retention and/or downstream redistribution “to the extent technologically feasible:" (password)
use of the material is clearly for educational, not entertainment purposes.
Specifically allowed:

Performances of non dramatic literary works, such as
readings from a novel, textbook, or poetry;
Performances of non dramatic musical works, such as playing a recording or actually performing a new pop song or symphony;
Performances of any other work, including dramatic and
audiovisual works in "reasonable and limited portions;"
Displays of any work "in an amount comparable to that which is typically displayed in the course of a live classroom session."
Specifically excluded:

Works that are marketed "primarily for performance or display as part of mediated instructional activities transmitted via digital network," for example materials available through an online database or digital delivery system;
Performances or displays given by means of copies that
might not have been lawfully made.

Fair Use also applies to the online environment. An instructor who is concerned that the use of copyrighted materials being considered for a course would not fall under the TEACH Act, might want to examine the proposed use in light of the four factors of Fair Use.