Not only does the law apply particularly to educational purposes, but it also limits the monetary liability that educators may potentially face, as long they hold a reasonable and good-faith belief that their activities are fair use in light of the four factors. By keeping the policy itself concise, the university preserves the flexibility inherent in fair-use law and preserves the opportunity to respond to a changing law and the changing demands of education and research. Such guidelines are too often an unduly narrow or rigid definition of fair use, and they usually impose additional restrictions and conditions that are not part of the law. No such guideline has been read into the law by Congress or the courts, and the guidelines are not binding. Fair use must be determined according to the circumstances of each situation.
Good faith increases the likelihood that activities are in fact fair use.
Good faith reduces the risks of liability in the event of infringement. Good faith is also important for securing the benefit of university assistance and support in the event that its faculty, staff, and librarians may face infringement allegations, in accordance with the Officers Liability Insurance resolution, dated May 22, 1971. Ultimately, good faith is best manifested through knowledge of, and reasonable application of, the four factors.