With the development of importance of creative works, protection of works of mind comes in tornpractice at national and international levels at different times. Right holders are given legalrnprotection over their arti stic and literary works in the form of exclusive rights in production,rnreproduction, distribution, performance, public display etc or exclusive rights of grantingrnauthorization to other to do the same. The ultimate goal of copyright protection is to providernincentives for people to produce scientific and creative works that benefit society at large. As farrnas the public is part of copyright system, the exclusive rights of copyright holders are not madernto be absolute because exceptions and limitations of copyright in the form of specific exceptionsrnand limitations, fair use, fair dealing and fair practice are an integral part of copyright policy sornthat users are free to utilize works of authors without authorization and with or without paymentrnas the case may be. Over protection of works has similar negative effect as under protection andrnhence, balanced protection is inevitable. Due to different reasons, copyright protection remainsrnterritorial with the exception of the development of International Conventions and Agreements tornharmonize copyright laws across the world. The degree of protection given to copyright holdersrnand users vary from jurisdiction to jurisdiction. Some jurisdictions provide strong protection tornthe moral and economic interests of copyright holders while others have balanced protectionrnwith utilitarian orientation.rnThere exists al so a difference in duration of protection of moral and economic rights whichrnaffects the limitations on the exclusive rights of copyright holders. Copyright in general andrnexceptions and limitations in particular have significant contribution to the development goalsrnthrough creation of employment, service and contribution to the GDP even though scholars didrnnot give attention for longer times. Ethiopia has no study so far about the economic contributionrnof copyright law. But currently there are areas of works dependent on copyright exceptions andrnlimitations. International copyright instruments provides exceptions and limitations compatiblernwith the three step test without identifying which exception should comply with the test or not asrnthere are exceptions which should not fall under the test such as reproduction for quotation,rnresearch, criticism, reporting current events etc. International copyright instruments have anrnadverse effect on the legislative flexibility of national law makers. The existing copyrightrnexceptions and limitations are under threat of elimination due to the development of self helprnmeasures of copyright holders of digital works to control access through TPMs. The Ethiopianrncopyright law needs amendment to balance the interests of copyright holders and users byrnincorporating flexible and comprehensive exceptions and limitations as creators a head by usingrnworks of predecessors and to accommodate changes taking place in technology on thernavailability, use and mode of protection of creative and innovative works of mind. Amendmentsrnshould take place on the exceptions and limitations term of protection, education, library, filernsharing in digital contents etc. Amendment is mandatory to incorporate provisions forrnenforcement of rights of users in case of violation of users' rights by copyright holders, liabilityrnexclusion provisos for internet service providers and librarians, to regulate use of technologicalrnprotection measures for digital works by copyright holders in comply with exceptions andrnlimitations