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Viewing Physical Media of Live Performances

I recently purchased a copy of a DVD at the request of a professor. I believe that the professor intends to show this film in class. The DVD is relevant to course materials. 

I opened up the case to catalog it, and inside the front cover was an insert ... asserting that a public performance rights license must be purchased to be able to show the DVD even in a classroom setting.

I purchased the DVD believing that the professor's showing would fall under Fair Use, as it would be limited to a specific and relevant educational course, shown only to students registered for that course, in a face-to-face classroom setting, using a legally purchased copy. However, my doubts are creeping in because the wording of the insert makes me wonder if this DVD was legally purchased.

If the producer intended for it to be sold only for home/individual use and expressly prohibits any type of group viewing as part of the sale, is my purchase with intent to use the DVD in a classroom setting illegal? Does this insert override or prohibit what would otherwise be Fair Use?

Thank you for your insight and expertise!

Screening DVD as part of curriculum

If a teacher teaches a novel in school, can they show the DVD of the movie under fair use?

Viewing DVD materials with remote-based students

I've had an interesting question posed to me by two Social Studies teachers and... I have a feeling this may be a more pervasive issue.

A teacher checked out a :50 video (DVD) from the school library he wants to show to his class. Typically, while the students are watching the video, they will answer/respond to a worksheet the teacher has provided to them. How does the teacher show this video to his Remote-Only students at home?

Lawfulness of digitizing VHS commercial movies to DVD

We recently purchased equipment that is capable of converting VHS tapes to DVDs that will be used by staff and patrons. We were initially thinking of it being used for home movies, and such, but then a staff member raised the question about the legality of converting commercial (movies, TV shows) VHS tapes to DVDs. Are there copyrighting issues involved? If it's not legal to convert them, what language can we use in our literature to make sure they are aware that it is not allowed, and any penalty that they may incur if they do? (We won't be watching them when they use the equipment.)

Thank you very much for your response!