4.1 The Terms of Reference direct the ALRC to consider whether existing exceptions in the Copyright Act 1968 (Cth), such as the fair dealing exceptions, are adequate and appropriate and also whether further exceptions should recognise ‘fair use’ of copyright material.

4.2 This chapter provides context for the ALRC’s consideration of fair use. It outlines arguments raised both for and against Australia introducing a broad, flexible exception based on fair use.

4.3 The chapter outlines the changed environment since previous Australian reviews considered the issue. It examines current approaches to formulating standards (open-ended and general) as compared with rules (closed-ended and more prescriptive).

4.4 Having considered these matters, the ALRC proposes that the Copyright Act should be amended to provide a broad, flexible exception for fair use. The last part of the chapter outlines key aspects of the proposed fair use exception.