In short, the TEACH Act is legislation that was passed by Congress to give non-profit educational institutions the ability to use copyrighted works for some specific purposes. For example: showing part of a movie in class. In this video, Matt Jackson explains some issues surrounding copyright, fair use, and the TEACH Act. The whole presentation is interesting, but if you're looking specifically for TEACH Act information, skip ahead to the 12-minute mark.
In addition, you may want to read over the Penn State TEACH Act page.
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