I have done a faculty development session on Turnitin.com and a collegue has done several. Lots of questions come up from faculty and copyright is a big issues since student submissions become part of a large pool that turnitin.com uses to find plagiarizers. Last I checked students had to click on a button saying its okay when they submit.
Two kids in California high school are suing. They claim they had copyright and told turnitin.com not to archive their paper. As the Washington post article says - Turnitin.com have very much won their legal battles on the college campus.
Article from Washington Post
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