At first, this paper raises the question on the impacts of Copyright System in digital environment. From reviewing history of Copyright System and Article 1 of Copyright Act, this paper holds that encouraging circulation and use of copyrighted work is main purpose of Copyright Act. This paper describes that facing digital and network technologies, the use of copyrighted work in our society has several changes. These changes, from the point of view that the main purpose of Copyright System is encouraging circulation and use of copyrighted work, make Copyright System facing several difficult issues. Finally, this paper examines several issues of Copyright System, such as, fair use, right of public transmission, electronic rights management information, protection of technological protection measures and Copyright Intermediary Organization Act. Encouraging circulation and use of copyrighted work is always the key of examining whether the Copyright System fit the need of current society.