A student’s use of third party material within assessed work could be covered by the ‘criticism and review’ and the ‘illustration for instruction’ exceptions provided the ‘fair dealing’ tests are satisfied. However, when the assessment process has been completed the ‘instruction’ exception will fall away as the work is no longer part of instruction or study activities, leaving only the ‘criticism and review’ exception in place. Care should be taken to ensure that this exception covers all use of third party material if the work is published in print or electronic format.
It is advisable that any student wishing to copy more than a ‘fair’ amount for the purpose of ‘criticism and review’ within a thesis should try to obtain permission to include that material from the rights holders in advance. Any permission request should also extend to the work being included in one or more electronic repositories.
If the student subsequently produces conference papers, articles, books, etc., based on the work, then they will need to re-apply for permission to include the third party material in the new version, unless they wish to claim that its inclusion in this new context is also 'Fair Dealing'. However, it is likely to be advisable that new permission is sought given the likely commercial context.
In all cases, full citation as to author and source should always be included.