This is the author’s version of a work that was accepted for publication of the article: International Journal of Information Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Information Management, VOL 29, 2009, DOI: doi:10.1016/j.ijinfomgt.2008.10.003.This paper examines the rationale for copyright and how the copyright exemption of the law promotes scholarship. It examines the possible challenges that may be faced by scholars and academic librarians in implementing the copyright fair dealing exemption in the digital environment following that digital information is protected by copyright law and licensing agreements. The paper attempts to propose possible measures that could be implemented for copyright exceptions to better function and promote scholarship in the digital environment