When the Digital Millennium Copyright Act of 1998 was debated, lobbyists and educators reached an impasse on new exemptions for digital distance education. Enacted in 2002 following five years of negotiations between educators and the publishing and entertainment industries, TEACH amends the DMCA to permit nonprofit, accredited educational institutions certain exemptions in the use of copyrighted materials. Under Section 110, educators and enrolled students are allowed to display or perform the entire text of a nondramatic literary work in the digital classroom without obtaining prior permission from the copyright holder and without paying fees, provided proper notice of copyright protection is given. Reasonable and limited portions of dramatic literary works, such as narrative motion pictures, operas, plays, etc., may also be used in the digital classroom. Under Section 112, eligible institutions are permitted to copy an analog version of a copyrighted work to a digitized format for use in the digital classroom, only if a digital version is not available or the available digital version is subject to technological protections that prevent its use. TEACH exemptions apply only to mediated instruction in which the learning process is initiated and supervised by course instructor(s) responsible for determining that the use of copyrighted materials is essential to meeting specific learning objectives. Instructors are required to make a "reasonable" effort to prevent students from disseminating copyrighted materials to others. Many institutions have interpreted password protection of digital course materials as meeting this requirement.

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http://www.mhi.org/fundamentals/automatic-identification (Automatic Identification and Data Collection (AIDC) Archived May 5, 2016, at the Wayback Machine)