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This article discusses the nature of Digital Rights Management (DRM) systems with regard to the problems they pose to traditional exceptions to copyright restrictions. Problems of fair use and the copying of material for preservation are examined in the context of the architecture of digital rights management systems, and the limitations of current DRM systems in accommodating these policies are examined. The monitoring of usage by the licensing modules of these systems is also criticized for its lack of protection of user privacy and the potential chilling of intellectual freedom. Various potential solutions to these are briefly surveyed with a view of improving DRM and preserving traditional library values.