Three Students Chose to Work on a Directed Study Project

Three students chose to work on a directed study project for Planned Parenthood Association. The project included the creation of a computer program for inventory control. The students went to the library to get a book on the topic. The book was in the reserve section, so the students made three copies of the four relevant pages so that they could study them. They used the ideas from the book and created an original program and a manual. Later, when the students were preparing a report for their presentation, they decided that the pages in the book exactly expressed the theoretical background they needed for the introduction. They copied those four pages and used them as their own for the beginning of their twenty page report. At the presentation, seven copies of the report were made (with the program and manual as appendices) . On these facts, which of the following is true?

A) When the students made three copies of the few pages of the book for study purposes, that in itself was an infringement of copyright; they have no defence.
B) Because the copied pages were a very small part of the whole report, there was no infringement of copyright.
C) Although the students have created a program and a manual as a project, they would own the copyright on the program and the manual unless they had agreed otherwise.
D) Copying the pages from the book for their report was fair dealing because it was exactly what they wanted to say about the theoretical basis of the report.
E) Using the ideas from the book was an infringement of copyright.