the institution must be an accredited, non-profit educational institution
- the institution must have copyright policies and must post a copyright notice on online course materials
- the institution must have technological measures in place to support compliance with TEACH Act requirements
- the copyrighted material used must be for a "mediated instructional activity "
- access to the copyrighted material must be limited to students enrolled in the class
- the material must be used in live or asynchronous class sessions
- the material may not include textbook materials "typically acquired or purchased by students"
- only "reasonable portions" of the original work may be used ("reasonable portions" is usually defined as the amount used in a typical face-to-face class session)
As I read this, if an instructor, or the college, owns a video, they can put that video, or portions of it on Blackboard for the use of the students in a particular class. (Obviously, only visible to the students in that particular online class.)
This is of some importance to me because in a traditional U.S. History class, I often use segments from the HBO series John Adams and the PBS Nova segment "The First Americans." I would be tempted to buy the PBS series The War That Made America for my U.S. History class. Similarly, I have edited a History Channel documentary about the Little Ice Age and a National Geographic special The Human Family Tree for use in Western Civilization. (And yes, I own a copy of both.) If I were teaching this class online, I would use these edited versions.
UPDATE: I first read this as a 2012 change to the law. No, it was changed in 2002.