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A Study on the Role of UGC Platforms in Copyright Law:                                                                                Chapter 2 Copyright in the Pre-Internet Age: An Intermediary-oriented Approach
              An Intermediary-oriented Approach

                                                                      96
              Publishers argued that photocopying infringed the right to copy.  Conversely, photocopier
              manufacturers and libraries claimed that photocopying should be treated as fair use
              because it was mainly conducted in libraries for non-commercial research purposes and
                                                                                           97
              would not compete with publishers’ normal exploitation of the copyrighted works.
              Further, the availability of photocopying increased the value of books to users, which
              allowed the publishers to raise book prices and profit from the new distribution technology,
                          98
              photocopying.
                 Photocopier manufacturers and libraries both served as distributors-intermediaries
              between book producers and the end users by widening the distribution channel. Before the
              invention of small, cheap photocopiers, libraries were the primary users of photocopying
              technology and thus were the main target of copyright enforcement.  For example, in 1935,
                                                                        99
              the trade association of American book publishers reached an agreement with the libraries’
              representative, the Joint Committee on Materials for Research of the American Council of
                                                          100
              Learned Societies and the Social Research Council.  This agreement, officially entitled the
              Interlibrary Loan Code of 1935, has often been called the Gentlemen’s Agreement because
              publishers have allowed libraries to make and deliver photocopies of parts of books or
              journals for research purposes in lieu of interlibrary loans.
                                                               101
                 Xerox photocopiers, introduced in the 1960s, decreased the cost of copying and
              encouraged libraries to make large quantities of copies not only for interlibrary loans but
                                                     102
              to distribute to individual users for a charge.  Publishers argued that such photocopying
              constituted a way to distribute copyrighted works as an alternative to publishing and
                                                       103
              asked for a restriction on library photocopying.  The Register of Copyright embraced the
              publishers’ petition, stating in its 1961 report that only ‘a reasonable portion of a copyrighted
              work’ is allowed to be ‘reproduced without permission when necessary for a legitimate
                                                                                          104
              purpose, which is not competitive with the copyright owner’s market for his work’.
              However, what counted as a ‘reasonable portion’ and what purpose was of the phrase ‘not
                                                                         105
              competitive with the copyright owner’s market’ remained unclear.  Ultimately, the US
              Congress prepared a vital amendment in its 1976 copyright act. A new entity, the National

              96  Ibid. 437.
              97  Ibid.
              98  Stan J Liebowitz, ‘Copying and Indirect Appropriability: Photocopying of Journals’ (1985) 93 Journal of Political Economy
                 945, 948.
              99  Price (n 95) 445.
              100  Laurie C. Tepper, ‘Copyright Law and Library Photocopying: An Historical Survey’ (1992) 84 Law Library Journal 341, 346.
              101  Ibid. 346.
              102  Ibid. 348.
              103  Ibid.
              104  See REGISTER OF COPYRIGHTS, COPYRIGHT LAW REVISION, REPORT HOUSE COMM. ON THE JUDICIARY,
                 87th Cong., Ist Sess. 50 (Comm. Print I96I) 24.
              105  Breyer (n 50) 330.


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