Fair use exceptions in copyright law facilitate the use of copyrighted works for the purpose of research and education. These exceptions protect the academic community from the offence of copyright infringement. Fair use exceptions are limitations on copyright law and have helped librarians in carrying out their work of dissemination of knowledge. This paper discusses the various theories that support copyright protection and the need for fair use. By analysing the fair use exceptions under Indian Copyright Act, 1957 that are relevant to libraries, this paper takes a view that the law needs to provide better protection for libraries in matters of fair use.