1. In suits for “indirect” infringement, aimed at legitimate products like the VCR, it limits copyright owners to actual damages rather than out of scale “statutory” rewards, unless the conduct is clearly and obviously illegal.
   
2. It codifies the Supreme Court’s holding in the "Betamax" case, that of indirect infringement should not be based on the design of consumer electronics or computer devices, or on their design or selection of components, if the device has a substantial non-infringing use. 
   
3. It codifies consumer protections as recently formulated by the U.S. Register of Copyrights:  That activities of consumers, librarians, and educators in using content at home or for other constructive purposes that are legitimate under the copyright law should not be held to be violations of the Digital Millennium Copyright Act  DMCA .   

Read theSection-by-Section Summary of the Fair Use Act (H.R. 1201).