Michigan Document Services was involved in creating packages of study material for the students of the University. A professor supplied the course material and Michigan Document services, a photocopying organization, took photocopies of the material and converted it into a booklet for sale to students at the University.
There was a clause of "Fair use” in this case. The photocopying company could have paid a nominal fee to the University and then used the material. This was available to anyone who wished to use the material. However, the photocopying company paid for only the original and then started making photocopies of the study material. The court considered that it was not "Fair use" and penalized the photocopying company.
http://www.bitlaw.com/source/cases/copyright/pup.html

