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166 The motion picture industry may not agree, and instead argue that the section 110(1) exemption does not apply because the instructor and pupil are not simultaneously in the same building. We disagree, but even if one supports such a narrow interpretation of the face-to-face teaching exemption, we still have fair use. A student who wants to watch a library-owned video in a library viewing room, in support of a school related project, should be able to do so under section 107. If the student could borrow the video from the library and watch it at home, he or she should be able to watch it in a library viewing room.

The face-to-face teaching exemption applies only to non-profit educational institutions. Performances of educational or training videotapes in organizations such as for-profit schools or corporations are not permitted under section 110(1). But as noted earlier, the legislative history indicates that routine business meeting showings are not public performances because they do not involve the gathering of a substantial number of people. Consequently, under most circumstances educational or training programs may be performed in commercial business settings, without payment of royalties, if the number of people attending the performances—at one time or over a period of time—is not substantial.

What should a library employee do when she has reason to believe that a patron plans to show a library-owned DVD to a large audience? If the following conversation takes place, you may wisely decide not to lend the film.