Copying instead of subscribing to or purchasing the work certainly has a negative effect on the market value. If a department regularly copies a newsletter and circulates it to the staff, it is clearly violating copyright law and depriving the copyright owner of income derived from multiple subscriptions. Systematic or regular copying without permission must be avoided because it is often incompatible with fair use. Sometimes an individual will need a quick copy and will not have time to seek permission from the copyright holder. Such spontaneous copying may be considered fair use if it is done infrequently.
Interlibrary loan has very specific copying guidelines under the fair use doctrine.
A library may borrow five articles from any one title during one calendar year, but when they receive the sixth request for that title, the library must order a subscription or report the copy to the Copyright Clearance Center and pay the royalty. Since most libraries cannot afford to subscribe to new titles because of exorbitant costs, they are left with growing costs in royalties. Publishers who have witnessed thousands of cancellations over the past few years see royalties as a growing source of income. Libraries must carefully track borrows and payments, archiving records for three years, an added burden for an already overburdened interlibrary loan staff. Photocopying and educators Educators are granted certain privileges under the Copyright Act that make it possible for them to make multiple copies for classroom use without the copyright owner's permission.