Full opinion text
OPINION AND ORDER Findings of Fact and Conclusions of Law LEYAL, District Judge. I. This class action tests the question whether it is lawful under the U.S. Copyright Act, 17 U.S.C. § 101, et seq., for a profit-seeking company to make unauthorized copies of copyrighted articles published in scientific and technical journals for use by the company’s scientists employed in scientific research. The plaintiffs are publishers of scientific and technical journals that publish copyrighted material under assignment from the authors. The defendant is Texaco Inc., one of the largest corporations in the United States, which engages in all aspects of the petroleum business from exploration through transportation and refining to retail marketing. This opinion decides the limited issue whether the making of single copies from plaintiffs’ journals by a Texaco scientist is fair use under Section 107 of the Copyright Act of 1976. 17 U.S.C. § 107. Many of the facts are not seriously disputed. Texaco’s Scientific Research. Texaco engages in substantial scientific research directed toward improving Texaco’s products and developing new products and processes. Texaco employs between 400 and 500 scientists and engineers at six research centers in the United States, including one in Beacon, New York. It spends in excess of $80 million annually in carrying on scientific and technical research, including an average of approximately $37 million a year from 1985 to 1987 at the Beacon facility- To support its research activities, Texaco subscribes to numerous scientific and technical journals, some published by various of the plaintiffs, and maintains large libraries of such materials. Texaco scientists, on learning of an article that may be helpful or important to their research, regularly make (or cause to be made by Texaco’s research libraries) a photocopy to be read, kept in their personal files and used in the laboratory in the course of their research work. Use of Journals in Research: Photocopying. Learned journals play an important part in scientific research. They serve to disseminate broadly and with reasonable rapidity the results of scientific research being conducted in many places.. It is of great importance for scientists doing research to keep abreast of the publication of such articles for many reasons. The reasons include awareness of new learning, suggestion of new ideas and approaches, avoidance of duplication of experimentation that has already been done, avoidance of avenues of experimentation that have been demonstrated to be fruitless, adoption for productive research of findings that have resulted from the research of others, and other valuable uses too numerous and varied to mention. . Because it is the important for scientists to remain abreast of such publications, industrial corporations that engage in research use a variety of methods to keep their scientists aware. Among the methods used are purchasing subscriptions to such journals and routing of the newly published issues among the scientists, circulating summaries or indices of recently published studies, circulating photocopies of tables of contents of recently published issues of journals, and simple word of mouth'by which scientific co-workers' mention to one another recent publications of interest. It is commonplace for scientists employed at Texaco, and in industry generally, to make for themselves (or to request from the company library) photocopies of particular articles that are expected to be useful in their work. There are numerous reasons for the use of such photocopies. Most importantly, it frees the original journal to circulate among colleagues or to return to the library and permits numerous scientists to keep copies of the same material, or of material bound in the same volume. Photocopying also permits scientists to make and maintain easily referenced personal files of pertinent articles, instead of surrounding themselves with bulky original volumes that include much material that is not relevant for the particular researcher. It avoids the need for repeated trips to the library. It eliminates the risk of error that enters into transcription; it permits a scientist initially to simply file the copy in an appropriate subject file for later review instead of immediately studying the article in detail and taking notes; copies of the article can be taken into the laboratory for use in conducting or evaluating experiments without the risks of errors in transcription and in the misapplication of equations or data; when used in the laboratory, copies eliminate the risk that chemicals or equipment might destroy the original; copies are more conveniently taken home to be read; the reader can make marginal notes directly on copies without defacing the original. Plaintiffs contend that by this photocopying Texaco infringes the plaintiffs’ copyrights. In answer to the complaint, Texaco raises the defense, among others, of “fair use.” It contends that such photocopying by scientists in industry is a reasonable and customary practice, necessary to the conduct of scientific research, and that it does not infringe the publishers’ copyrights. The parties have stipulated that, prior to the trial of any other issues, trial would be submitted to the Court on a written record limited to the question of fair use under § 107. See Procedural and Scheduling Stipulation and Order Governing the Fair Use Trial, entered July 26, 1990. Donald Chickering, II, Ph.D. For convenience and to avoid untoward discovery expenses with respect to largely duplicative matters, the stipulation provides that the trial of the issue of fair use be conducted, with respect to eight photocopies found in the files of an arbitrarily selected one of Texaco’s several hundred scientific researchers. The lot fell on one Donald H. Chickering, II, Ph.D., employed at the Texaco research center at Beacon, New York. Chickering’s.files were found to contain a number of photocopies of numerous items from various scientific and technical journals. As the subject of this limited issue trial, plaintiffs selected eight copies of complete pieces that appeared in the Journal of Catalysis, a monthly publication of Academic Press, Inc., which is one of the plaintiffs in this action. Chickering is a Ph.D. in chemical engineering who specializes in the study of catalysts and catalysis. Catalysis is “the change in the rate of a chemical reaction brought about by often small amounts of a substance that is unchanged chemically at the end of the reaction.” Webster’s Third New International Dictionary 350 (1976). Chickering has been employed at the Beacon research facility since January 1981 as a “technical man at the bench,” that is, a professionally degreed scientist who designs and performs experiments and other work in the laboratory. Chickering’s laboratory experiments have involved basic research on catalysis, including investigating various ways of analyzing catalysts, designing, building and operating chemical reactors, using catalysts to make usable products out of previously wasted hydrogen and carbon monoxide, and upgrading the quality of fuels through catalysis. At the time of his testimony, Chickering was the group leader of the “Automation Design and Construction Group,” which provided engineering and automation research to support catalysis research, new technology research, and advanced research. Shortly after Chickering joined Texaco, he had the library at Beacon put his name on the- routing lists for the scientific and technical journals that he believed would be of professional interest. Consistent with what Texaco contends is reasonable and customary for scientists employed by for-profit companies, Chickering often photocopied, or had the library photocopy for him, copyrighted articles in scientific and technical journals. As noted, plaintiffs selected from Chick-ering’s files eight copies of material from Academic Press’ Catalysis. These included four “articles,” two “notes” and two “letters to the editor.” Each of them was published with a copyright notice showing Academic Press as the owner of the copyright and reserving all reproduction rights. It is assumed for purposes of the trial of the fair use issue that each was indeed copyrighted matter and that the copyright had been validly assigned by the authors to Academic Press. In each case Chickering photocopied the entirety of the particular article, note or letter. He selected those pieces because the discussion was pertinent to research that he was conducting or expected to conduct in the future and because he expected that the discussion and the information conveyed would be helpful to him in conducting research for Texaco. Although Texaco’s papers and the affidavits of its personnel repeatedly refer to Chickering’s use of these materials as his “personal” use, it is clear that this refers to research pursuant to Chickering’s employment for the benefit of his employer Texaco. Academic Press and the Journal of Catalysis. Academic Press, the publisher of Catalysis, is a major publisher of scholarly scientific, technical and medical journals, monographs and books. Academic Press is a wholly-owned subsidiary of Harcourt Brace Jovanovich, Inc., the nation’s largest scientific and medical book and journal publisher. Currently, Academic Press publishes 105 scientific, medical and technical journals covering a wide range of specialties in the physical, life and behavioral sciences. Catalysis first appeared in 1962. It is published monthly. It includes three classes of items: articles, notes and letters to the editor. They vary in form and size, articles being the longest, letters to the editor the shortest. (Because there is no functional distinction between the three for purposes of this inquiry, they are all referred to here as “articles.”) All articles in the journal are devoted to scientific and technical matters. Each monthly issue is around 200 pages long and contains approximately 20-25 articles. Every article published in Catalysis is unsolicited; none is written by Academic Press employees. Academic Press does not pay authors for the right to publish an article. Authors interested in publishing in Catalysis are directed to submit their articles directly to one of the journal’s two editors. Authors are informed that if their manuscript is accepted for publication, the copyright in the article, including the right to reproduce the article in all forms and media, shall . be assigned to Academic Press. The editors are not employees of Academic Press, and, like the authors, they receive no pay. Academic Press reimburses the editors for secretarial support, postage, telephone charges and some travel expenses. The editors have complete editorial control and sole discretion over the content of Catalysis. Articles they deem worthy of publication are submitted to peer review for a recommendation as to whether the article should be published, and if so, whether and how the article should be revised. The peer reviewers are not paid by Academic Press. Academic Press sells two types of subscriptions to Catalysis: an institutional rate, which is charged to both profit and nonprofit institutions, and an individual rate. In 1989, an institutional subscription to Catalysis cost $828. The individual rate is half the institutional rate. The subscription rates have increased since 1972 at a rate more than three times the increase in the Consumer Price Index. Texaco’s Beacon facility, which pays the institutional rate, had purchased one subscription to Catalysis until 1983, when it doubled its subscriptions. In 1988, the Beacon facility increased its subscriptions to three, the number it continues to purchase to date. In addition to yearly subscriptions, Academic Press offers back issues of Catalysis for sale. Back issues are available separately for three years following publication. Thereafter, they are bound together as annual volumes and are offered only in that form. In addition, reprints are available, with the author’s prior approval, but only on a minimum order of 100 copies. Each order for reprints is printed separately and takes an average of three weeks to be filled. The Copyright Clearance Center: Authorizations to Copy. Academic Press also offers users authorization to photocopy pieces from Catalysis through the mechanism of the Copyright Clearance Center Inc. (“CCC”). The CCC is a nonprofit, central clearing-house established in 1977 by publishers, authors and photocopy users which, as agent for publishers, grants blanket advance permission for a fee to photocopy copyrighted material registered with CCC, and forwards the fees collected to copyright owners, net of service charge. CCC was formed in response to a Congressional recommendation that an efficient mechanism be established to license photocopying. See S.Rep. No. 983, 93d Cong.2d Sess., at 122 (1974); H.R.Rep. No. 83, 90th Cong., 1st Sess., at 33 (1968); S.Rep. No. 94-473, 94th Cong., 1st Sess., at 70-71 (1975); see generally A.F. Spilhaus, The Copyright Clearance Center, 9 Scholarly Pub. 143 (1978). CCC’s Board of Directors is comprised of representatives from the publishing, author and photocopy-user communities. As of 1990, approximately 8,000 domestic and foreign publishers had registered approximately 1.5 million publications with CCC. Currently, CCC offers two principal services for obtaining advance permission to photocopy copyrighted material that publishers have registered with the CCC. The first method, inaugurated in 1978, is called the Transactional Reporting Service (“TRS”). TRS provides photocopy users with blanket permission to photocopy from any CCC-registered publication, provided the user subsequently reports the making of the photocopy and pays the fees required by the copyright owner. The fee is printed on the first page of each article. The fee for each copy of an article in Catalysis has been $2 from 1978 through 1982 and $3 thereafter. Under TRSJ users originally reported' their photocopying to CCC either by (1) submitting an extra copy of the first page of the article or journal that was photocopied, with certain information marked on it; or (2) by submitting log sheets containing the same information; or (3) by providing such information in computer printout form or magnetic tape. Users, however, objected to identifying the articles they, copied because they feared this could give information to their competition as to where their research efforts were being concentrated. Accordingly, CCC eliminated the need to identify the item copied. Since January 1, 1983, the information provided to CCC has been reduced to the journal’s standard International Standard Serial Number (“ISSN”), publication year, and the photocopy permissions fee set by the publisher (multiplied by the number of copies made). (The necessary information is set forth at a lower comer of the first page of each article in the journal.) To comply with TRS, a user company might place log sheets at photocopy machines. Whenever company personnel made copies of material covered by CCC, they would make a log entry noting the journal number and year, the numbers of pages and of copies, and the fees prescribed. Library personnel would collect these logs and submit them monthly to CCC with payment. Some major corporate users objected to the administrative costs of training personnel and setting up recordkeeping necessary for full compliance with TRS. Jane C. Ginsburg, Reproduction of Protected Works for University Research or Teaching, 39 J. Copyright Soc’y 181, 209 (1992) (hereinafter “Ginsburg, Reproduction of Protected Works”). In response, in 1983, CCC inaugurated a second service for obtaining advance permission to photocopy that eliminated the TRS’s reporting requirements. This was the Annual Authorization Service (“AAS”). AAS was designed by two econometricians working with the cooperation of major corporate users. Under the AAS, the corporate user is granted a blanket annual license to make photocopies for internal use of any copyrighted material contained in any of the journals and books registered with the CCC. The annual license fee is determined on the basis of a limited photocopying survey, factored by the licensee’s employee population and the copying fees for the journals regularly copied by that user. Upon payment of an annual license fee, the AAS licensee is authorized to make unlimited numbers of photocopies from CCC registered publications for internal use. The license is for one year, renewable for an additional year at the licensee’s option. At the end of a two-year period a new license can be obtained. The revenue derived from the TRS and the AAS is allocated among the publishers that have registered publications with the CCC, net of CCC’s service charges, in accordance with the users’ photocopying of their material. The basic fee for photocopying per unit of material is not set by CCC but rather by the individual publishers. As of January 1991, there were approximately 400 users reporting under the TRS method, and over 100 corporate licensees under the AAS method. The AAS licensees include eleven major petroleum companies (Exxon, Mobil Oil, Amoco, Ashland Oil, BP America, Chevron, Marathon Oil, Atlantic Richfield, Occidental Petroleum, Phillips Petroleum, and Sun Refining and Marketing) as well as other major research-oriented corporations including Allied Signal, Ciba-Geigy, AT & T and its Bell Labs Division, Dupont, Eastman Kodak, Dow Corning, General Electric, IBM, Monsanto, Olin, PPG, Polaroid, Texas Instruments, 3M, Union Carbide, United Technologies and USX. As of December 31, 1989, total permission fees paid to CCC under the TRS program from its inception have amounted to approximately $9 million. Total fees paid by licensees under the AAS program from its inception to December 31, 1989 have amounted to about $18 million. CCC’s combined TRS and AAS revenue and distributions have increased each year. II. Copyright Protection and the Doctrine of Fair Use The copyright entered the law of England through the Statute of Anne of 1710. 8 Anne, ch. 19 (1710). Its caption declared it to be “An Act For the Encouragement of Learning by Vesting the Copies of Printed Books in the Authors....” The preamble declares the statute’s purpose to be “for the Encouragement of Learned Men to Compose and write useful Books.” The act conferred the exclusive right (for 14 years) to the making of copies upon the authors and noted that the practice of pirated publications “too often [causes] the Ruin of [authors] and their Families.” Following a similar line of reasoning the United States Constitution conferred the power on Congress “To promote the progress of science and useful arts by securing for a limited time to authors and inventors the exclusive right to their respective writings and discoveries.” U.S. Const, art 1, § 8, cl. 8. The stated objective was “to promote the progress of science [i.e., knowledge]”; the means by which this was to be accomplished was the granting to authors of exclusive rights with respect to their writings. The theory espoused by this constitutional provision is that the advancement of public good, through growth of knowledge and learning, is to be obtained by securing the private commercial interests of authors. See Mazer v. Stein, 347 U.S. 201, 219, 74 S.Ct. 460, 471, 98 L.Ed. 630 (1954). If authors are guaranteed the opportunity to profit from their writings, they will have an incentive to create, and the public will ultimately reap the resulting expansion of human knowledge. In contrast, if no copyright protection were granted and others were permitted to copy freely works of authorship, authors would find it difficult to earn a living from their writings; their energies would be diverted to other pursuits by the need to feed their families; consequently, the public’s right to appropriate the works of authors would make the public poorer through loss of the benefit of authors’ endeavors. This led James Madison to observe, “the utility of [the power conferred by the patent and copyright clause] will scarcely be questioned.... The public good fully coincides in both cases with the claims of individuals.” The Federalist No. 43, at 186 (J. Madison) (C. Beard ed. 1959). Congress promptly acted on the Constitutional grant of authority, passing the first Copyright Act, modelled on the Statute of Anne, in 1790. Not long after the creation of statutory copyright, courts developed doctrines that limited the scope of the exclusive rights of authors. Although the copyright acts (pre-1976) ostensibly established absolute rights, the “courts simply refused to read the statute literally in every situation.” Sony Corp. of America v. Universal Studios, Inc., 464 U.S. 417, 447 n. 29, 104 S.Ct. 774, 791 n. 29, 78 L.Ed.2d 574 (1984) (referring to the 1909 Act). It was recognized for example that the copyright did not confer upon the author any ownership of the facts set forth in the author’s writings, or even of the ideas. See, e.g., Baker v. Selden, 101 U.S. 99, 25 L.Ed. 841 (1879); Feist Publications, Inc. v. Rural Telephone Service Co., — U.S. -, -, 111 S.Ct. 1282, 1287, 113 L.Ed.2d 358 (1991); Hoehling v. Universal City Studios, Inc., 618 F.2d 972, 979 (2d Cir.), cert. denied, 449 U.S. 841, 101 S.Ct. 121, 66 L.Ed.2d 49 (1980); Sheldon v. Metro-Goldwyn Pictures Corp., 81 F.2d 49, 54 (2d Cir.1936) (L. Hand); Nichols v. Universal Pictures Corp., 45 F.2d 119, 121 (2d Cir.1930) (L. Hand), cert. denied, 282 U.S. 902, 51 S.Ct. 216, 75 L.Ed. 795 (1931). Another limitation on authors’ absolute ownership has come to be known as the doctrine of “fair use.” The need for it was explained by Lord Ellenborough’s assertion that “while I shall think myself bound to secure every man in the enjoyment of his copyright, one must not put manacles upon science.” Carey v. Kearsley, 170 Eng.Rep. 679, 681, 4 Esp. 168, 170 (1803). Thus the doctrine recognized that the advancement of knowledge and learning required some reasonable tolerance within which scholars and authors might freely use or quote from the writings of others for comment, criticism, debate, history, etc., without which the “progress of science” might be retarded rather than advanced by the authors^ ownership. In its early days, the doctrine related primarily to abridgements and was known as the rule of “fair abridgement.” See William F. Patry, The Fair Use Privilege in Copyright Law 6-7 (1985) (hereinafter “Patry, Fair Use"). The contours of the rule arc vague. No judicial opinion ever undertook to define clear standards for fair use. In the United States’ law, the classic opaque statement was articulated in 1841 by Justice Story in Folsom v. Marsh, 9 F.Cas. at 342 (C.C.D.Mass.1841) (No. 4,901). Instructing as to how to approach the question of fair use, Story wrote, “In short, we must often ... look to the nature and objects of the selections made, the quantity and value of the materials used and the degree in which the use may prejudice the sale or diminish the profits or supersede the objects of the original work.” 9 F.Cas. 342, 348. The fair use doctrine was not expressly incorporated into statute until the Copyright Act of 1976, which largely adopts the formulation of Justice Story, and purports, according to the legislative commentary, merely to “restate the present judicial doctrine of fair use, not to change, narrow, or enlarge it in any way.” House Rep. No. 94-1476, 94th cong., 2d Sess., 66, U.S.Code Cong. & Admin.News 1976, 5659, 5679. But see Patry, Fair Use at 362. Section 107 of the 1976 Act (which is quoted in full in the margin) instructs that “fair use of a copyrighted work ... for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship or research, is not an infringement of copyright.” Although the statute does not attempt to define fair use, it instructs that four factors be considered. The four factors, each of which can be found in Justice Story’s 1841 summary, are (i) the purpose and character of the use, (ii) the nature of the copyrighted work, (iii) the amount and substantiality of the portion used, and (iv) the effect of the use on the potential market for the copyright. As vague, broad and far reaching as .these factors are, the Supreme Court has noted that they are not exclusive and that the fair use doctrine is an “ ‘equitable rule of reason.’ ” Stewart v. Abend, 495 U.S. 207, 236, 110 S.Ct. 1750, 1768,109 L.Ed.2d 184 (1990) (quoting Sony, 464 U.S. at 448, 104 S.Ct. at 792). Courts and commentators have repeatedly observed that a fair use inquiry is highly fact-specific and does not readily admit of bright line generalizations. See, e.g., Harper & Row Publishers, Inc. v. Nation Enters., 471 U.S. 539, 560, 105 S.Ct. 2218, 2230, 85 L.Ed.2d 588 (1985) (“ ‘no generally applicable definition [of fair use] is possible, and each case raising the question must be decided on its own facts’ ” (citation omitted); Wright v. Warner Books, Inc., 953 F.2d 731, 740 (2d Cir.1991) (“The fair use test remains a totality inquiry, tailored to the particular facts of each case”). First Factor — The Purpose and Character of the Secondary Use Throughout the development of the fair use doctrine, courts consistently expressed ■preference for secondary uses that did not merely copy and offer themselves as substitutes for the original copyrighted text, but that used the matter taken from the copyrighted work for some new objective or purpose. In Story’s classic Folsom formulation, this preference was expressed in the focus on “the objects of the selections made ... and the degree to which the use ... may supersede the objects of the original work.” 9 Fed.Cas. at 348 (emphasis added). Story added [N]o one can doubt that a reviewer may fairly cite [quote] largely from the original work, if ... [its design be] ... criticism. On the other hand, it is as clear, that if he thus [quotes] the most important parts of the work, with a view, not to criticise, but to supersede the use of the original work, [infringement will be found]. 9 F.Cas. at 344-45 (emphasis' supplied). An example of this thinking was set forth in 1740 in one of the earliest fair use cases, Gyles v. Wilcox, 26 Eng.Rep. 489, 2 Atk. 141 (1740) (No. 130), relating to abridge-ments, which stated, Where books are colourably shortened only, they are undoubtedly infringement within the meaning of the [Statute of Anne].... But this must not be carried so far as to restrain persons from making a real and fair abridgment, for abridgments may with great propriety be called a new book, because ... the invention, learning, and judgment of the [secondary] author is shewn in them.... Rulings and explanations of this sort led courts eventually to generalize that under the first factor “productive” uses were favored. Sony, 464 U.S. 417, 478-479, 104 S.Ct. 774, 807 (Blackmun, J., dissenting). (The word “productive” was not necessarily an ideal description of the line of authorities because it risked the misconception that it encompassed any copying for a socially useful purpose. In fact, as illustrated by the quotations above from Gyles and Folsom, what the early authorities had meant was a secondary use that was productive in that it produced a new purpose or result, different from the original — in other words, a secondary use that transformed, rather than superseded, the original.) Some courts reached the conclusion that such a productive use was essential to a finding of fair use. For example, in the Court of Appeals decision that was reviewed in Sony, Universal City Studios v. Sony Corp. of America, 659 F.2d 963, 970 (9th Cir.1981), rev’d, 464 U.S. 417, 104 S.Ct. 774, 78 L.Ed.2d 574 (1984), the Ninth Circuit had excluded the possibility of fair use for non-productive copying of televised broadcasts using a video recorder. The Supreme Court criticized the Circuit for over-rigidity. On the basis of its “equitable” analysis, the Supreme Court ruled that a non-productive video recording could be fair use if done solely for the purpose of shifting the time at which a private subscriber could see the broadcast, without any commercial motivation and without observable cost or loss to the value of the copyright. Justice Stevens emphasized the clause of the first statutory factor that focuses on whether the use is of a “commercial or ... non profit” character. “If the Betamax [copier] were used to make copies for a commercial or profit-making purpose, such use would be presumptively unfair. The contrary presumption is appropriate here, however, because the District Court's findings plainly establish that time-shifting for private home use must be characterized as a noncommercial nonprofit activity.” 464 U.S. at 449, 104 S.Ct. at 792. The Sony holding did not overturn the preexisting concept that productive or transformative' uses were favored over non-productive, merely superseding copies. It ruled only that productivity was not determinative in the inquiry, and that equitable considerations could lead to a conclusion of fair use in spite of a non-productive copying. In fact, in its next consideration of fair use, in Harper & Row, Publishers, Inc. v. Nation Enterprises, 471 U.S. 539, 105 S.Ct. 2218, 85 L.Ed.2d 588 (1985), the Supreme Court reiterated the pertinence of whether the use is productive. See Nation, 471 U.S. at 561, 105 S.Ct. at 2231 (“The fact that an article is originally ‘news’ and therefore a productive use is simply one factor in a fair use analysis.”). What has emerged since the Supreme Court’s Sony decision seems to be a two-track pattern of interpretation of the first factor: Secondary users have succeeded in winning the first factor by reason of either (1) transformative (or productive) nonsu-perseding use of the original, or (2) noncommercial use, generally for a socially beneficial or widely accepted purpose. Where courts have considered trans-formative, productive, non-superseding secondary uses of the type that were favored in the historical development of fair use, they have attached little importance to the presence of profit motivation. Courts have recognized that most instructive publishing activity involves profit motivation. Thus text books, newspapers, criticism, historical books, medical and scientific materials, are all published in major part by commercial publishers with a profit motive. Furthermore, authors and scientists, critics and journalists, all must earn their living and frequently receive payment for their writings. The ability to quote from written texts is extremely important for such writing. If the existence of a profit motive were virtually to disqualify writing from entitlement to fair use protection, its benefits would virtually disappear, and the categories of enterprise cited in the introductory language of Section 107 — criticism, comment, news reporting, teaching, scholarship and research — would be effectively barred use of quotation unless they were done as philanthropy. Thus courts have repeatedly found in favor of transformative secondary uses on the first factor, notwithstanding the presence of profit motivation. See, e.g., Consumers Union of United States, Inc. v. General Signal Corp., 724 F.2d 1044, 1049 (2d Cir.1983), cert. denied, 469 U.S. 823, 105 S.Ct. 100, 83 L.Ed.2d 45 (1984) (“Although the purpose of [the] use undoubtedly is commercial, this fact alone does not defeat a fair use defense ... Almost all newspapers, books and magazines are published by commercial enterprises that seek a profit”); Rosemont Enters., Inc. v. Random House, Inc., 366 F.2d 303, 307 (2d Cir.1966), cert. denied, 385 U.S. 1009, 87 S.Ct. 714, 17 L.Ed.2d 546 (1967) (“Whether an author or publisher reaps economic benefits from the sale of a biographical work, or whether its publication is motivated in part by a desire for commercial gain ... has no bearing on whether a public benefit may be derived from such a work. Moreover, the district court in emphasizing the commercial aspects of the Hughes biography failed to recognize that ‘all publications presumably are operated for profit’ ”); see generally, 3 Nimmer § 13.05[A] at n. 24. Thus, although courts ritualistically proclaim, almost as a mantra, that every commercial use is “presumptively” unfair, that presumption is easily overcome by a transfor-mative, nonsuperseding use. Cf. Rogers v. Koons, 960 F.2d 301, 309 (2d Cir.1992) (“whether the profit element of the fair use calculus affects the ultimate determination of whether there is a fair use depends on the totality of the factors considered; it is not itself controlling”); Maxtone-Graham v. Burtchaell, 803 F.2d 1253, 1262 (2d Cir. 1986), cert. denied, 481 U.S. 1059, 107 S.Ct. 2201, 95 L.Ed.2d 856 (1987) (“Only an unduly narrow reading of the language of Sony Corp. and an inattention to the context could lead to the conclusion that the Court intended to attach heightened significance to the element of commerciality”); Arica Institute, Inc. v. Palmer, 970 F.2d 1067 (2d Cir.1992). On the other hand, as the second track, the Sony opinion makes clear that at least certain nonprofit uses can qualify as fair use, even though they may involve nonproductive superseding copies. The Court of Claims in Williams & Wilkins v. National Institute of Health, 203 Ct.Cl. 74, 487 F.2d 1345 (1973), aff'd by equally divided Court, 420 U.S. 376, 95 S.Ct. 1344, 43 L.Ed.2d 264 (1975), had reached a similar conclusion. Williams & Wilkins involved photocopying carried on by scientists at the National Institute of Health and the National Medical Library. In making its finding of fair use the Court stressed that this copying was being done by governmental nonprofit organizations devoted exclusively to the advancement of science. 487 F.2d at 1354. The court made clear that the freedom from the “taint” of commercial gain was essential to the finding of fair use. The Court of Claims strongly implied that its conclusion would have been opposite had a motive of commercial gain been present. I conclude that on either branch of the analysis plaintiffs win the first factor, as Texaco’s copying is neither transformative nor noncommercial. Texaco’s copying is not transformative or productive but is superseding. Texaco’s copying is not of the transformative, nonsuperseding type that has historically been favored under the fair use doctrine. Texaco simply makes mechanical photocopies of the entirety of relevant articles. Nor is the copy of the original, employed. as part of a larger whole, for some new purpose. The dimensions of the original and of the copy are identical. The principal purpose of Texaco’s copies is to supersede the original and permit duplication, indeed, multiplication. A scientist can make a copy, to be read subsequently and kept for future reference, without preventing the circulation of the journal among coworkers. This kind of copying contributes nothing new or different to the original copyrighted work. It multiplies the number of copies. This is the type of superseding copying that has been disfavored since the earliest discussions of the doctrine and was thought by many to preclude a finding of fair use prior to the Supreme Court’s decision in Sony. Texaco argues that this copying should be considered “productive” because its purpose is to advance scientific discovery. The argument fails for several reasons. That is not the kind of productivity that was intended by the discussions and holdings. As noted above, what was meant was that the copying should produce something new and different from the original, and not that a superseding copy would qualify, so long as it was made in pursuit of a beneficial cause. If the latter were the meaning of the doctrine, precious little would be left of the copyright protection.as applied to scholarly or scientific writing. For scholarly and scientific writing has no readership except among those who use it in scholarly and productive or educational undertakings. If that fact alone were sufficient to justify the making of superseding copies, the authors and publishers of scholarly, scientific and educational materials could not protect their copyrights and could not survive as against inexpensive copier technology. See Weissmann v. Freeman, 868 F.2d 1313, 1325 (2d Cir.), cert. denied, 493 U.S. 883, 110 S.Ct. 219, 107 L.Ed.2d 172 (1989) (“Encouraging authors to use their talents by holding out a promise of reward for their efforts is the surest way to advance the public welfare.... Hence, while recognizing that fair use finds greater application in a factual scientific context, that recognition should not blind a court to the need to uphold those incentives necessary to creation of” scientific papers). Texaco argues also that its copies should be considered transformative because it is important for scientists like Chickering to work with a photocopy and not with the original. It argues that the original is in many ways not useful to a scientist. Chickering testified that he needs a photocopy, in preference to an original, because he wishes to write notes in the margin and to take it into the lab where it may be exposed to corrosive chemicals, without damaging the original. He also needs a photocopy because it is less bulky; its slender 8-10 pages can be conveniently taken home to read or stored in a file, in prefer-encé to a 200-page complete issue, much less a complete annual volume. This argument has some merit. In some circumstances, photocopying for the purpose of transferring text onto material of different character or shape could .be a convincing transformation. Thus if the original were copied onto plastic paper so that it could be used in a wet environment, onto metal so that it would resist extreme heat, onto durable archival paper to prevent deterioration, or onto microfilm to conserve space, this might be a persuasive transformative use. Indeed, if Chickering were the subscriber and sole user of the subscription to Catalysis, and he made an extra copy of an article for use in the lab or for marking with scratch notes, the argument might have considerable force. Here, however, where three subscriptions to Catalysis are serving the needs of hundreds of scientists, the principal feature of the photocopying is its capacity to give numerous Texaco scientists their own copy based on Texaco’s purchase of an original. The most prominent feature of this copying is that the copies supersede the original and multiply its presence. Thus even if some transformative purpose was present in transferring the article from its journal into a slender photocopy, that use is overshadowed by the primary aspect of the copying, which is to multiply copies. Finally, Texaco argues its use of copies should be considered favorably under the first factor because the principal purpose of the copying is to state reported facts accurately. A number of courts and commentators have noted that quotation can be a favored secondary use (of the transformative type) when quotation is necessary to convey factual material (or ideas) accurately, or to demonstrate the validity of assertions of fact. See, e.g., New Era Publications Int'l, ApS v. Henry Holt and Co. (“New Era”), 873 F.2d 576, 592 (2d Cir.1989), cert. denied, 493 U.S. 1094, 110 S.Ct. 1168, 107 L.Ed.2d 1071 (1990) (Oakes, C.J, concurring) (“words that are facts calling for comment are distinguishable from words that simply enliven text. The law recognizes that words themselves may be facts to be proven”); New Era, 884 F.2d 659, 663 (Newman, J., dissenting from denial of rehearing en banc) (“expressive words sometimes need to be. copied ‘in the interest of accuracy, not piracy’ ”) (quoting Consumers Union, 724 F.2d at 1049); Arthur Schlesinger. Jr., The Judges of History Rule, Wall St.J., October 26, 1989, at Sec. 1, page 16, Col. 3 (“when responsible scholars gain legitimate access to unpublished materials, copyright should not be permitted to deny them use of quotations that help to establish historical points”); Jon 0. Newman, Not the End of History: The Second Circuit Struggles With Fair Use, 37 J. Copyright Soc’y 12, 15 (1990) (“[C]opying of otherwise protected expression may be justified by the need to report facts fairly and accurately”); Leval, Toward a Fair Use Standard, 103 Harv. L.Rev. 1105, 1114 (1989) (hereinafter “Le-val, Toward a Fair Use Standard ”) (“[Hjistory, biography, and journalism benefit from accurate quotation of source documents, in preference to a rewriting of the facts, always subject to the risk that the historian alters the ‘facts’ in rewriting them.”). Texaco argues that photocopying by its scientists should come within this principle. It contends that its scientists have little or no interest in copying the expressive portions of the originals, that what they need are primarily the formulas, graphs and tables that set forth the results of studies and experiments. Note taking would not only consume inordinate time, but carry a high risk of costly error. Although the argument has some merit, it does not prevail on these facts. First, Chickering and his colleagues do not copy only the formulas, graphs and tables. The eight-item sample (as well as the other photocopies) taken from Chickering’s files (and others) shows that the practice is to copy the entire article. Furthermore, his deposition showed that he often made the copies before reading the original. Neither the practice nor the purpose were limited to the accurate preservation of the facts contained in formulas, graphs and tables. The major purpose of such photocopying has been multiplication of copies. This permits the scientist to defer reading, and to keep possession of an additional copy without hoarding the original issue of the journal, so that the original can circulate without delay among colleagues (each of whom may do likewise), or return to the library where all colleagues will have access to it. Texaco’s argument, although ingenious, simply does not fit the facts of the case. Texaco’s copying is for commercial gain. Nor does this come within the class of copying that has prevailed under the first factor because of its nonprofit educational or social value. Texaco contends its copying should be considered comparable to that in Williams & Wilkins — copying done by scientists for the purpose of advancing science, rather than for commercial gain. Texaco emphasizes the social good to be derived from its research, including the development of cleaner burning, more efficient fuels to benefit the earth’s ecology and resources. Texaco points out that its scientists and engineers are encouraged by Texaco to participate in scientific meetings and symposia and to publish papers of scientific merit. From 1986 to 1991 Texaco scientists have published more than 130 papers. In addition, Texaco scientists work with members of the academic community to exchange results of research. And Texaco finances research at universities in areas of common interest. Texaco contends it shares the results of its research with the scientific community at large by encouraging its scientists to write and publish articles and make presentations at scientific symposia. Notwithstanding all this, I cannot accept Texaco’s argument. Granted, the copiers are scientists, they are using their copies to assist in socially valuable scientific research, and they do not resell the copies. Nonetheless their research is being conducted for commercial gain. Its purpose is to create new products and processes for Texaco that will improve its competitiveness and profitability. Chickering testified that he selected articles to copy because they related to the research that he was doing in the course of his employment at Texaco. The purpose of this research was in each case to improve Texaco’s commercial performance. In sum, because the secondary use in question was copying of a superseding nature (done to create additional copies of the original) and was not transformative (or productive in the fair use sense), and because it was carried on in a commercial context for the purpose of producing profits, I find that plaintiffs easily prevail on the first factor inquiring into the purpose and character of the use. Second Factor — The Nature of the Copyrighted Work The second factor under § 107 looks to the “nature of the copyrighted work.” Although there is an aspect of the facts that favor plaintiffs, I conclude that this factor favors Texaco. The aspect that favors the plaintiffs is that the articles and materials published in Catalysis are created for publication with the purpose and intention of benefitting from the protection of the copyright law. These are the kinds of exercises of authorship that the copyright law was designed to protect in its objective “to promote the progress of science.” In contrast, there are other types of writings that enjoy copyright protection although they are made for purposes incompatible with the public-benefit objective of the copyright law, such as functional communications intended to be kept secret. Examples might be an extortion note, or a bank robber’s written instructions to confederates with diagrams assigning tasks for carrying out the robbery. Such writings, in no way partake of the purpose to promote the advance of knowledge; they may enjoy a lower claim to protection from fair use than writing created for public dissemination with the intent to benefit from the protections of the copyright. Copyright protection is vitally necessary to the dissemination of scientific articles of the sort that are at issue. This is not because the authors insist on being compensated. To the contrary, such articles are written and published without direct payment to the authors. But copyright protection is essential to finance the publications that distribute them. Circulation of such material is small, so that subscriptions must be sold at very high prices. If cheap photoduplications could be freely made and sold at a fraction of the subscription price, Catalysis would not sell many subscriptions; it could not sustain itself, and articles of this sort would simply not be published. And without publishers prepared to take the financial risk of publishing- and disseminating such articles, there would be no reason for authors to write them; even if they did, the articles would fail to achieve distribution that promoted the progress of science. Being the type of authorship that the copyright laws were designed to protect, this type of publication has a stronger claim to protection from copying than secretive private functional communications. See discussion in Leval, Toward a Fair Use Standard, at 1116-1122. On the other hand, courts have often observed that “the scope of fair use is greater with respect to factual than nonfactual works.” New Era Publications Int’l ApS v. Carol Publishing Group, 904 F.2d 152, 157 (2d Cir.), cert. denied, — U.S. -, 111 S.Ct. 297, 112 L.Ed.2d 251 (1990); Rogers, 960 F.2d at 310; see generally Gorman, Fact or Fancy? The Implications for Copyright, 29 J. Copyright Soc’y 560 (1982). It is difficult to tell whether such a judicial assertion about fair use is intended as prescriptive or descriptive. This may be nothing more than the logical consequence of two other principles: First, that facts are not subject to copyright ownership, Feist Publications, 111 S.Ct. at 1287; Hoehling, 618 F.2d 972, and second, the principle, discussed above, that quotation when done for the purpose of reporting facts accurately has a high claim for recognition as a favored purpose under the first fair use factor. See authorities cited on pages 14-15 above. Regardless whether the statement is a prescriptive utterance of a rule creating for factual material a special vulnerability to fair use, or merely a description of the inevitable consequence of the application of other rules about factual writing, it is unquestionably true that fair use is more easily found where the copyrighted material is of a factual nature rather than a fictional type. The material here being copied by Texaco’s scientists is “essentially factual in nature,” Maxtone-Graham, 803 F.2d at 1263, consisting of reports on scientific experimental research. The texts describe procedures followed and characterize the results found. Results are expressed largely in tables and graphs. I therefore conclude that the second factor favors Texaco. Third Factor — Amount and Substantiality of Portion Used The third factor looks to “the amount and substantiality of the portion used in relation to the copyrighted work as a whole.” This factor clearly favors the plaintiffs, as Chickering has copied the entirety of the copyrighted articles in question. The Supreme Court acknowledged in Sony that the reproduction of an entire copyrighted work ordinarily “militat[es] against a finding of fair use.” Sony, 464 U.S. at 450, 104 S.Ct. at 792; see also Patry, Fair Use 449-450 (“Prior to ... Williams & Wilkins Co. v. United States, the courts had uniformly denied fair use for the copying of entire works.... This has continued to be generally true after Williams & Wilkins and the passage of the 1976 Act, with the notable exception of ... Sony”); 3 Nimmer § 13.05[A][3] (“generally it may not constitute a fair use if the entire work is reproduced”). Texaco argues that its scientists should be found to have copied only a small fraction of the copyrighted work when they photocopy an entire article. Texaco points out that Academic Press registers entire issues of the Journal of Catalysis with the Copyright Office and does not register separately the individual articles. As an average issue of Catalysis is around 200 pages long while an average article is 8 to 10 pages long, Texaco argues that the photocopying of an article copies approximately 4% of the copyrighted work'-.' This argument constitutes imaginative lawyering, but it does not prevail. Each article, note or letter published in Catalysis is a separately authored work, protected by a copyright, which the authors have assigned to Academic Press. Because it would involve gigantic expense and inconvenience to register separately each of the 20 odd items that appear in an individual issue, Academic Press registers each issue with the Copyright Office. It does not follow from the manner of registration with the Copyright Office that the “copyrighted work” for the purposes of fair use analysis consists of the entire issue rather than the separate creations of the separate authors. Plaintiffs win the third factor. Fourth Factor — Effect on the Market for the Copyrighted Work The fourth factor looks at “the effect of the use upon the potential market for or value of the copyrighted work.” Plaintiffs contend that were it not for the photocopying practiced by Texaco’s scientists, Texaco would need to provide its scientists additional copies through any one or more of a number of different routes, all of which would substantially supplement the revenues of the copyright owning publishers: Plaintiffs argue Texaco could pur-cháse additional subscriptions; it could purchase back issues or back volumes; it could order tear sheets from document delivery services that purchase subscriptions; it could order photocopies from document services that make copies under license agreements with the plaintiff-publishers and pay-royalties to the publishers for all copies made; it could negotiate a license directly with a particular publisher to pay a blanket fee for the right to make photocopies at will; or, alternatively, Texaco could photocopy articles as needed for its scientists by operating under the TRS or AAS license services offered by the CCC. I find that plaintiffs have powerfully demonstratéd entitlement to prevail as to the fourth factor. Texaco does not seriously contest that its scientists need photocopies of pertinent scientific journal articles to use in conducting' their research. Indeed, Texaco argues the need is so great that it should dictate a finding of fair use. (This argument is discussed below in the section on equitable factors.) It is clear that, if the making of unauthorized photocopies is found not to be a fair use, Texaco will nonetheless continue to provide its scientists with copies, so long as there exists a means of doing so that is not excessively expensive or burdensome. The publishers have persuasively shown that there exist convenient and reasonably priced procedures by which Texaco could obtain the necessary additional copies for its scientists. If court rulings established that the existing practice of making photocopies violates plaintiffs’ copyright, Texaco would resort to one or more of these procedures to provide its scientists with copies that are necessary for their research, and Texaco’s doing so would add significantly to the plaintiffs’ revenues and the value of its copyrights. Texaco seeks unsuccessfully to show that Academic Press would not receive substantial additional revenues if Texaco (and similarly situated photocopiers) ceased to make unauthorized photocopies. While Texaco makes valid points on certain issues, its contentions do not undermine the strength of the publishers’ proof of loss of revenue. First, in response to the publishers’ contention that Texaco would buy additional subscriptions, back issues or back volumes, Texaco argues that what a scientist needs is a photocopy, and that need would not be served by additional subscriptions, back issues or back volumes. A scientist wants a photocopy on which to scribble notes in the margin without defacing an original; the photocopy also will be taken into the laboratory where corrosive chemicals may spill on it without fear of damaging the original. Furthermore, complete issues (or, a fortiori, complete volumes) are far too bulky to be kept in scientist's files or even used conveniently. All of this makes complete issues of the journal impracticable. Texaco shows, furthermore, that Academic Press does not offer reprints on terms convenient to the needs of Texaco’s individual scientists as reprints may be purchased only with a minimum order of 100 copies. Thus, Texaco argues, if Texaco stopped making photocopies for Chickering and his colleagues, Texaco would not replace those photocopies by purchasing numerous additional subscriptions or by purchasing back issues and back volumes. Such purchases would not serve the necessary ends. I find that Texaco’s contentions are substantially correct (although perhaps slightly overstated). I accept as correct that Texaco would not ordinarily fill the need now being supplied by photocopies through the purchase of back issues or back volumes. I accept also that Texaco would not fill this need by enormously enlarging the number of its subscriptions. Nonetheless, this does not significantly undermine the plaintiffs’ position. The plaintiffs have shown that there are a variety of other avenues Texaco could and would follow to provide its scientists promptly and relatively inexpensively with working copies of articles for their files (which would produce revenues for the publishers). These include the ordering of photocopies from document delivery services that would pay royálties to the publishers, the negotiation of blanket licenses with individual publishers, and the use of a CCC license under either the TRS or the AAS. Moreover, although I accept Texaco’s contention that it would not replace its scientists’ individual copies by vastly increasing the number of subscriptions, the evidence supports the inference that, ■ if Texaco stopped photocopying, it would increase the number of subscriptions somewhat. It is important that scientific and technical journals be promptly circulated so that research scientists are made promptly aware of new published studies in the areas of their work. Previously, Texaco has increased the number of its subscriptions to Catalysis (from one to two and later to three) in order to speed up the circulation process. The evidence shows that scientists will make a photocopy of an article in order not to slow down the circulation process. If that photocopying stopped, the circulation would slow down; scientists would hold onto an issue for a longer time before continuing its routing. To speed up the circulation, it seems likely that Texaco would add at least a modest number of subscriptions to Catalysis which would increase Academic Press’ revenues. Nor does Texaco’s evidence contradict the probability that, if it stopped photocopying, its scientists would place orders for photocopies with document delivery services; such document services would promptly make and deliver photocopies, bill Texaco a modest fee, and pay royalties to the publisher under a private license agreement. Finally, as noted above, the publishers have shown that the copying licenses offered by CCC would also satisfy the needs of Texaco’s scientists for photocopies at a reasonable cost and burden to Texaco. This would provide significant additional revenue to the publishers and add value to their copyrights. The court finds that if Texaco stopped making “free” photocopies, it would fill this gap through some combination of the methods discussed and, in doing so, would add significant value to the publishers’ copyrights. It is impossible to predict which of the possible procedures Texaco would employ to achieve speed and efficiency, to avoid administrative burden and to control expense. But it is clear that whatever combination of procedures Texaco used, the publishers’ revenues would grow significantly. Texaco also argues that Academic Press’ growing subscription revenues and glowing profitability disprove that it is being harmed by Texaco’s photocopying practices. (The Court of Claims reached a similar conclusion in Williams & Wilkins. The Court of Claims noted the enormously successful subscription and revenue figures enjoyed by the plaintiff-publisher and concluded that such impressive commercial success disproved plaintiff’s contention that it was being hurt financially by the photocopying- practices at NIH. See Williams & Wilkins, 487 F.2d at 1357.) The argument has no merit. Furthermore, it distorts the statutory standard. In order to prevail on the fourth factor, the copyright owner is not required to demonstrate that it has been reduced to poverty by the defendant’s copying. Rather, “to negate fair use one need only show- that if the challenged use ‘should become widespread, it would adversely affect the potential market for the copyrighted work.’ ” Nation, 471 U.S. at 458, 105 S.Ct. at 2230-31 (quoting Sony, 464 U.S. at 451, 104 S.Ct. at 793) (emphasis added). The fact that the copyright owner is realizing rich profits from the exploitation of its copyrights despite the unauthorized copying has no logical tendency to prove that the secondary user’s copying is not diminishing those profits. If the copyright owner would be receiving significantly higher revenue but for the defendant’s uncompensated copying, the standard is satisfied, regardless of revenues already being received. The lack of merit in defendant’s argument is easily apparent if we take as a hypothetical case the distribution of recordings of a popular musical group. Precisely when such a recording is selling like hot cakes, the copyright owner at the same time will be realizing high profits and will be most vulnerable to losing profits as the result of unauthorized distribution of bootleg copies. Of course I recognize that Texaco seeks to apply the argument to a far more benign form of infringement than bootlegging of counterfeit recordings, and one that involves no resale. But Texaco’s argument does not depend on the type of