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Yes, laws are being broken all across the country.
There's a reason college professors still have to charge way above photocopying costs for those reading packets they put together. So that the campus bookstore, or whomever is doing it, can play clearances on them.
But no, nobody is going to raise a stink about photocopying a journal article for individual research purposes or a semi-lengthy excerpt from a monograph. But I knew student workers at every college library I've worked at who would use the back-room copiers to simply photocopy their entire textbook for free (to them) and save all that money on their books for the quarter.
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