Copyright Exceptions: Commercial and Non-Commercial

Generally speaking, copyright laws give copyright holders the right to authorise or prevent copying of their work.

However, there are certain exceptions where copyright protected material can be used without permission from the rights holder.

These exceptions, known as “permitted acts,” differ based on whether they apply to commercial or non-commercial use.

Understanding this distinction is crucial for staying within the law while using protected material.

Permitted Acts for Commercial Use

Several permitted acts allow the use of copyright protected material even for commercial purposes, though there are often restrictions. Here are the main acts that apply to commercial use:

Quotations and Criticism

This exception permits the use of a copyright work for the purpose of quotation, criticism, or review. It applies both in non-commercial and commercial contexts. For instance, a monetised blog, YouTube channel, or newspaper article that quotes from a book or film to analyse or criticise the work would fall under this exception.

However, the use must be attributed, only the necessary portion of the work can be quoted.

News Reporting

Journalists and media outlets are allowed to use copyright protected material when reporting current events. This includes news articles, television broadcasts, or online content that might show clips of a copyright protected video or quote from a protected work.

News reporting is often done for commercial gain (such as for-profit news organisations), but this use is allowed as long as the material is used fairly and accurately, and the original source is acknowledged.

Parody, Satire, and Caricature

Parody, satire, and caricature are creative forms of commentary or humour that involve using copyright protected works in a transformative way.

For example, a parody of a popular song that pokes fun at its lyrics is allowed under this exception and a comedian who quotes some lines from a famous tv show is permitted to for their own show.

Technically, there is no rule against commercial use of copyright materials in these circumstances. However, you can only use a copyright work for parody, satire and caricature if it is considered to be ‘fair dealing.’ ‘Fair dealing’ essentially requires the portion of the work used to be proportionate to the purpose and that the parody does not compete with the original work or negatively affect its market. This can be tricky if you are making a profit, especially if the original rightsholder’s profits are affected.

Permitted Acts for Non-Commercial Use

Some permitted acts are explicitly restricted to non-commercial purposes. This means that they can only be used when the purpose is not for profit or financial gain.

These acts include:

Private Study and Non-Commercial Research

Individuals may use copyright protected works for private study or research, but only for non-commercial purposes. Students, researchers, or hobbyists can copy parts of works, such as articles or books, but they cannot distribute them for commercial purposes.

For instance, someone studying literature could copy portions of a novel for their analysis, but selling a study guide with the copied material would not be allowed.

Educational Use

The exception allows for the use of copyright protected works for instruction within educational institutions, provided the use is non-commercial and directly related to teaching at educational institutions.

Teachers can copy parts of books, share images, or play music in class, but it must not be for financial profit and is directly related to teaching and the scope of the use must be reasonable and directly related to teaching.

This is why schools typically need to purchase licences to perform musicals – If the audience for the musical is wider than students and instructors directly connected with the educational establishment, the educational use permitted act will not apply. e.g. if the audience includes the public or parents the school will need a licence to perform the musical.

It is important to note that the education exception is not available to private tutors. It is only available to formal educational establishments specified by order of the Secretary of State.

Text and Data Mining for Non-Commercial Research

Text and data mining, often used by researchers to analyse large datasets, is permitted if it’s for non-commercial research purposes.

Universities and researchers can copy works for the purpose of analysis, but businesses and commercial researchers cannot rely on this exception.

As you can see, English copyright law provides several exceptions that allow for the use of copyright protected material without the creator’s permission.

Some acts are available for commercial use, while others limited to non-commercial purposes.

In any event, the permitted acts are reserved for very limited and particular circumstances. Many are also limited by specific rules surrounding fair dealing.