In a recent court case, a copy-shop owner was accused of violating copyright law when, in the preparation of "course packs"—materials photocopied from books and journals and packaged as readings for particular university courses—he copied materials without obtaining permission from or paying sufficient fees to the publishers. As the owner of five small copy shops serving several educational institutions in the area, he argued, as have others in the photocopy business, that the current process for obtaining permissions is time-consuming, cumbersome, and expensive. He also maintained that course packs, which are ubiquitous in higher education, allow professors to assign important readings in books and journals too costly for students to be expected to purchase individually. While the use of copyrighted material for teaching purposes is typically protected by certain provisions of copyright law, this case was unique in that the copying of course packs was done by a copy shop and at a profit.

Copyright law outlines several factors involved in determining whether the use of copyrighted material is protected, including: whether it is for commercial or nonprofit purposes; the nature of the copyrighted work; the length and importance of the excerpt used in relation to the entire work; and the effect of its use on the work's potential market value. In bringing suit, the publishers held that other copy-shop owners would cease paying permission fees, causing the potential value of the copyrighted works of scholarship to diminish. Nonetheless, the court decided that this reasoning did not demonstrate that course packs would have a sufficiently adverse effect on the current or potential market of the copyrighted works or on the value of the copyrighted works themselves. The court instead ruled that since the copies were for educational purposes, the fact that the copy-shop owner had profited from making the course packs did not prevent him from receiving protection under the law. According to the court, the owner had not exploited copyrighted material because his fee was not based on the content of the works he copied; he charged by the page, regardless of whether the content was copyrighted.

In the court's view, the business of producing and selling course packs is more properly seen as the exploitation of professional copying technologies and a result of the inability of academic parties to reproduce printed materials efficiently, not the exploitation of these copyrighted materials themselves. The court held that copyright laws do not prohibit professors and students, who may make copies for themselves, from using the photoreproduction services of a third party in order to obtain those same copies at lesser cost.