Examine briefly the legal implications for the infringement of “fair use “ and “TEACH Act” copyrights for the online instructor and for profit educational institution ?

Here is a concise legal overview of the implications of infringing Fair Use and the TEACH Act in a for-profit online education context.

1. Fair Use Infringement

Legal Basis: Copyright Act of 1976 (17 U.S.C. §107)

What Fair Use Allows

Fair use permits limited use of copyrighted works without permission based on four factors:

Purpose and character of the use (commercial vs. nonprofit, transformative nature)

Nature of the copyrighted work
Amount and substantiality used
Effect on the market value

For for-profit institutions, the “commercial purpose” factor often weighs against fair use, though it is not automatically disqualifying.

Legal Implications of Infringement

If an instructor or institution incorrectly claims fair use:

Direct Infringement Liability (Instructor)

The instructor may be personally liable for unauthorized reproduction, distribution, public performance, or display.
Vicarious or Contributory Liability (Institution)
The institution may be liable if it:

Had the right and ability to supervise the infringement, and
Benefited financially from it.

Statutory Damages
Under the Copyright Act of 1976:

$750–$30,000 per work infringed
Up to $150,000 per work for willful infringement

Actual Damages & Profits
Courts may award actual financial losses and any profits attributable to infringement.
Injunctions & Reputational Harm
Courts may order removal of materials and halt course distribution.

2. TEACH Act Infringement

Legal Basis: Technology, Education, and Copyright Harmonization Act (17 U.S.C. §110(2))

What the TEACH Act Permits

The TEACH Act allows accredited nonprofit educational institutions to:

Transmit limited portions of copyrighted works

In distance education settings
Without obtaining permission

Key limitation: It primarily applies to accredited nonprofit institutions. Many for-profit institutions cannot rely on its protections.

Institutional Requirements Under the TEACH Act

To qualify, institutions must:

Implement copyright policies

Provide informational materials on copyright
Limit access to enrolled students
Use technological measures preventing retention and redistribution
Use only lawful copies

Failure to meet any requirement removes TEACH Act protection.

Legal Implications of Non-Compliance

If an online instructor at a for-profit institution relies improperly on the TEACH Act:

The use reverts to ordinary copyright analysis.

The institution may face:

Direct liability (unauthorized digital transmission)
Secondary liability for faculty actions

Increased exposure because digital transmissions can involve:

Reproduction
Distribution
Public performance/display rights

3. Specific Risks for For-Profit Institutions

For-profit institutions face heightened scrutiny because:

Commercial purpose weighs against fair use.

TEACH Act protections may not apply.
Courts may consider systematic use in online courses as market substitution.
Licensing markets for digital course materials are well established.

Conclusion

If “fair use” or the TEACH Act is improperly invoked:

Instructors risk personal infringement liability.

For-profit institutions face significant statutory damages, especially since TEACH Act protections are limited largely to nonprofit institutions.
Courts will apply traditional copyright principles under the Copyright Act of 1976, often with less deference to commercial educational use.