What if I use a system like CourseInfo which uses passwords to restrict access to students in a particular class? Wouldn that fall under fair use?
Certainly, limiting access to students in a particular class makes a better case for fair use,but even under these circumstances one would have to consider the four fair use factors and the guidelines for brevity and spontaneity. For example, the information could be posted for one semester only and could not be re-used without getting permission. Basically, if it would not be permissible to distribute copies of articles, images, or other copyrighted materials in paper format, then it would not be permissible to distribute them in electronic format. If you do request permission from the copyright holder to mount the work on the Web, they may require that you use a password or some method of encryption to protect against unauthorized access or illegal copying. For more information see: the TEACH Act.
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