Under the Digital Millennium Act, online service providers, such as universities, can avoid liability if they take certain steps specified in the Act. These include cases when the university has been informed of an infringement, shutting off access to the infringing material, and notifying the user who posted it, so that he or she can take up the matter with the copyright holder. The user must be given the right by the university to appeal the shutoff. If a university meets the above requirements, in all likelihood, it will avoid liability for any given infringement.

Stupendous University, without prior warning, checked the public folders of 200 students using the university's network and found that 75 students had files containing illegally copied MP3s. MP3 audio files enable users to exchange compact disc recordings digitally over the Internet, which can violate copyright rules. Only the chancellor and the head of the IT department know about the discovery. Should the chancellor at Stupendous University keep the discovery secret in the interests of academic freedom?  Explain your answer in detail.