Statement of Marybeth Peters
The Register of Copyrights
before the
Web-Based Education Commission

United States Senate
106th Congress, 2nd Session

July 20, 2000

Web-Based Education


Thank you for the invitation to testify before the Commission today. As you may know, in the Digital Millennium Copyright Act of 1998, the Copyright Office was requested by Congress to conduct a study on the application of copyright law to distance education through digital technologies. The Office was asked to report back in six months to Congress on ways to promote distance education. On May 25, 1999, after an intensive process of identifying stakeholders, holding public hearings and meetings around the country, soliciting comments, conducting research, and consulting with experts in various fields, the Copyright Office submitted its report, entitled "Copyright and Digital Distance Education," to Congress. Copies of the Report were sent to this Commission. In that Report, the Office recommended several amendments to the Copyright Act to update the current educational exemptions to cover certain educational activities taking place through digital technologies. I have summarized the Report in this statement. Last year, hearings on the Report were held in both the House and the Senate. No bill addressing this issue has yet been introduced.

I would like to provide you with a brief update of developments in relevant fields that have occurred in the year since we submitted our Report. One of the findings in that Report was that there were two areas in which significant developments might change the need for an exemption in the future. Those two areas were: (1) the difficult licensing environment for the use of copyrighted works in digital distance education; and (2) the lack of commercially available technological protection measures to protect works used in digital distance education. We reported that educational institutions attempting to license works for digital distance education experienced problems such as difficulty in locating copyright owners, inability to obtain timely responses or unreasonable prices or other terms. This was a factor in our recommendation to expand certain aspects of current educational exemptions. We also found that technological protections necessary to protect copyright owners from the risks of unauthorized academic use were not yet developed enough to warrant a broad exemption. Therefore, we recommended that the effectiveness of the exemption be delayed until such time as sufficient technological protections were available in the academic market.

These areas continue to develop. However, to our knowledge, neither field, licensing or technology, has evolved sufficiently to change the nature of our recommendations. We continue to be presented with anecdotal evidence of licensing problems in the academic market, although digital distance education continues to grow as a field, with more and more online courses available. Publishers report making advances regarding so-called "orphan works," which will make it easier for an applicant for a license for a published work to locate its owner, and cite to an increase in the number of businesses in the online rights management field as evidence of the advent of a more effective licensing process for the digital arena. However, it would appear that the major problems identified in our Report still remain, notwithstanding that there has been some improvement overall in licensing for digital distance education uses since we submitted our Report to Congress.

Technologies to protect works have similarly evolved, becoming ever more prevalent in the licensing and use of copyrighted works in the digital environment. However, to our knowledge, effective technological protections for high-value content, including music and audiovisual works, have not yet been deployed in the commercial marketplace, much less been adapted for use in an academic context.

In conclusion, while some progress has been made in both of these keys areas, there is not yet evidence that the balance of interests identified in our Report has shifted.

I. The Nature of Distance Education Today

Distance education in the United States today is a vibrant and burgeoning field. Although it is far from new, digital technologies have fostered a rapid expansion in recent years, as well as a change in profile. The technologies used in distance education, the populations served, the institutions offering such programs, and the partnerships that have emerged differ in nature and scale from earlier models.

The most fundamental definition of distance education is a form of education in which students are separated from their instructors by time and/or space. Distance education is utilized in some form at every level of the educational spectrum, with the most extensive use in higher education. An individual course may contain both classroom and distance education components. Digital technology is used extensively for varied purposes and in varied ways, depending on the intended audience for the course, and the availability and cost of the technology. The capabilities of the new technologies have made possible a more interactive experience that more closely parallels face-to-face teaching--in effect creating a virtual classroom. They have also made distance education courses more convenient and better suited to the needs of different students, including by providing the benefits of both synchronous and asynchronous methods.

Distance education is reaching wider audiences, covering all segments of the population. The college audience is increasing particularly rapidly, in part due to responsiveness to the needs of an older, non-traditional student population, as well as students in other countries. Students also include professionals engaging in professional development or training, and retirees. The expansion of the field has led to changes among providers, with courses offered by both nonprofit and for-profit entities, on both a nonprofit and for-profit basis, and through varieties of partnerships among educational institutions and corporations. The federal government has been active in promoting the benefits of distance education, with recent legislation providing funding and recognition in various forms.

Educational institutions offering distance education draw on library resources in several ways, including to provide support for online courses and to provide access to supplemental materials in digital form. Institutions are engaged in adopting copyright policies, training faculty and staff, and educating students about copyright law. They are increasingly seeking and obtaining formal accreditation.

II. Licensing of Copyrighted Works

Although substantial licensing activities are taking place today in connection with the provision of materials to distance education students, so far relatively few licenses are requested or granted for digital uses. Most licensing relates to supplemental materials in analog form, or, increasingly, in digital form; the least common type of licensing is for digital uses of copyrighted works incorporated into the class itself. Most of the works licensed for digital use are textual materials; licenses for other types of content are much less frequent. As an alternative to seeking a license, an educational institution may avoid the use of preexisting copyrighted works in distance education courses, or may rely on exemptions in the copyright law. There is wide diversity in licensing procedures among educational institutions and copyright owners. In general, the more resources devoted to licensing, and the more centralized the responsibility, the more efficient and successful the process.

Many educational institutions describe having experienced recurrent problems with licensing for digital distance education, primarily involving difficulty locating the copyright owner, inability to obtain a timely response, or unreasonable prices or other terms. The problems are reported to be most serious with respect to journal articles and audiovisual works. They appear to be exacerbated in the digital context, which may be explained in part by the perception of copyright owners that the risks of unauthorized dissemination are greater, and in part by the elements of novelty and unfamiliarity.

A number of trends may facilitate the development of more effective digital licensing in the near future, including advances in technology used to protect works, the use of electronic copyright management information, and online licensing systems. New collective initiatives should also ease the licensing process for many types of uses. As digital uses become more common and familiar, copyright owners are becoming more flexible. It is difficult to predict the extent to which licensing problems will subside or how long the improvement will take, but given the current state of development of these trends, a more definitive evaluation will be possible in the next few years.

III. Technologies Involved in Digital Distance Education

Technology that facilitates licensing includes the ability to attach information to a work in digital format, and online rights and permissions services supporting a range of license and delivery functions. A number of different delivery technologies are used in distance education today, including traditional media used to carry digital information, such as digital television broadcasts or videoconferencing. These may be used in combination with digital network technology, such as computer connections between students and instructors.

The computer is the most versatile of distance education instruments, since it can perform the same function as a television or telephone, but also provide more interactivity, deliver more content, and support more comprehensive services. Computers can be used to transmit texts and graphics, connect users in a variety of real-time and asynchronous dialogues, deliver messages between users, and receive both audio and video transmissions.

There is no "typical" digital distance education course. Instructors sometimes build courses from scratch, and sometimes customize templates provided by commercial software. They may combine any or all of the technological tools available today, including e-mail, threaded discussions, chat rooms, whiteboard programs, shared applications, streaming video or audio, video or audio files, course management infrastructure, links to websites, and interactive CD-ROMs and DVD-ROMs. In addition, programs for self-paced independent learning may be obtained from commercial vendors or through an educational institution.

The need to provide technological security for copyrighted works in the digital environment has been recognized in all sectors, not just for distance education. Technology companies and content providers are working to develop commercially viable protection technologies, and industries are collaborating to develop standards. Some technologies limit access to works; others prevent or detect uses of works after access. Each method varies in its cost and degree of security; although many are highly effective, none provides absolute certainty. The g